Freelance contract but full time

Jimeji

Last November I began working for a media company on a freelance contract basis, but the contract states 5 days a week and 37hours. Two days a week in the office. Essentially a full-time role. We initially agreed a 3 month contract, which was then extended by 3 months, and this has been on repeat.

The initial promise was that this would extend to a permanent contract once targets were hit, and both parties were happy with the work. I would argue that this has now been achieved, but there is no sign of a permament contract or job offer.

Obviously I am missing out on regular beneifts such as annual leave and pension contributions. I appreciate many businesses are reducing staff hire where possible. But is this a clear case of being unfairly treated and exploitation, or is the business completely within their rights?

Wonka_2

Was there nothing in the contract you negotiated that agreed what the objectives were and on what basis you’d then become ‘employed’ 

if not then now’s the time to get your negotiating head on - but can you afford to go it if their net outlay is to remain the same whilst they’re paying your benefits/holidays etc ? 

Jimeji

Wonka_2 said:

Was there nothing in the contract you negotiated that agreed what the objectives were and on what basis you’d then become ‘employed’ 

if not then now’s the time to get your negotiating head on - but can you afford to go it if their net outlay is to remain the same whilst they’re paying your benefits/holidays etc ? 

No, nothing in the contract about moving to a permanent contract. That was all verbal. 

My question is, is the company acting lawfully? I've heard that HMRC can look unfavourably at this style of agreement.

flaneurs_lobster

Jimeji said:

My question is, is the company acting lawfully? I've heard that HMRC can look unfavourably at this style of agreement.

The fairly obvious danger here is that if you were to start making suggestions like this one you might find that the company might not be requiring your services further - on any basis.

SiliconChip

The legal position is that after 4 years on fixed term contracts the position becomes permanent unless the employer can show there is a good business reason not to do so. As you have another 3 years to wait for that to happen you might want to consider asking nicely if they will consider a permanent position.

https://www.gov.uk/fixed-term-contracts/renewing-or-ending-a-fixedterm-contract

penners324

SiliconChip said:

The legal position is that after 4 years on fixed term contracts the position becomes permanent unless the employer can show there is a good business reason not to do so. As you have another 3 years to wait for that to happen you might want to consider asking nicely if they will consider a permanent position.

https://www.gov.uk/fixed-term-contracts/renewing-or-ending-a-fixedterm-contract

Which applies to employed contracts not freelance contracts.

Freelance contracts like this will fall within IR35. Ie the company has to resolve this asap or hmrc will come down hard in them

Grumpy_chap

Jimeji said:

Last November I began working for a media company on a freelance contract basis, but the contract states 5 days a week and 37hours. Two days a week in the office. Essentially a full-time role. We initially agreed a 3 month contract, which was then extended by 3 months, and this has been on repeat.

The initial promise was that this would extend to a permanent contract once targets were hit, and both parties were happy with the work. I would argue that this has now been achieved, but there is no sign of a permament contract or job offer.

Obviously I am missing out on regular beneifts such as annual leave and pension contributions. I appreciate many businesses are reducing staff hire where possible. But is this a clear case of being unfairly treated and exploitation, or is the business completely within their rights?

What sort of salary would you get if the job went permanent?

How does your day-rate as a freelancer compare? 

Undervalued

Jimeji said:

Last November I began working for a media company on a freelance contract basis, but the contract states 5 days a week and 37hours. Two days a week in the office. Essentially a full-time role. We initially agreed a 3 month contract, which was then extended by 3 months, and this has been on repeat.

The initial promise was that this would extend to a permanent contract once targets were hit, and both parties were happy with the work. I would argue that this has now been achieved, but there is no sign of a permament contract or job offer.

Obviously I am missing out on regular beneifts such as annual leave and pension contributions. I appreciate many businesses are reducing staff hire where possible. But is this a clear case of being unfairly treated and exploitation, or is the business completely within their rights?

Are you?

In a proper sensibly negotiated freelance contract the lack of those employment benefits would be reflected in the daily rate of pay which would need to be significantly higher than an employee's wage.

monkey-fingers

penners324 said:

SiliconChip said:

The legal position is that after 4 years on fixed term contracts the position becomes permanent unless the employer can show there is a good business reason not to do so. As you have another 3 years to wait for that to happen you might want to consider asking nicely if they will consider a permanent position.

https://www.gov.uk/fixed-term-contracts/renewing-or-ending-a-fixedterm-contract

Which applies to employed contracts not freelance contracts.

Freelance contracts like this will fall within IR35. Ie the company has to resolve this asap or hmrc will come down hard in them

Even less reason then to offer perm if inside. My old company used to have people from Manpower on contracts for years. Nothing was ever said.

If you're inside, you're entitled to annual leave an so on. You have to pay for it yourself, of course. But you have 2 choices with your umbrella. Either take the time off or take the money. Because people are used to the salary, they take the money.

Marcon

penners324 said:

SiliconChip said:

The legal position is that after 4 years on fixed term contracts the position becomes permanent unless the employer can show there is a good business reason not to do so. As you have another 3 years to wait for that to happen you might want to consider asking nicely if they will consider a permanent position.

https://www.gov.uk/fixed-term-contracts/renewing-or-ending-a-fixedterm-contract

Which applies to employed contracts not freelance contracts.

Freelance contracts like this will fall within IR35. Ie the company has to resolve this asap or hmrc will come down hard in them

Only if the contractor is working via an intermediary - and looking at OP's other posts, they are self employed, so IR35 doesn't apply.

What is highly likely to apply is the status of 'worker', which would entitle OP to things like pension contributions - or (possibly even more likely) 'employee', since nothing in their post suggests they are truly self employed.

However, although the theory is all well and good, the reality may well be that the company suddenly finds OP's services aren't required if they rock the boat.

Jimeji said:

Obviously I am missing out on regular beneifts such as annual leave and pension contributions. I appreciate many businesses are reducing staff hire where possible. But is this a clear case of being unfairly treated and exploitation, or is the business completely within their rights?

Fairness doesn't come into it - life isn't fair. As for being exploited - you can always leave if you don't like the terms and don't have the negotiating skills/clout to agree something you find more palatable.

EnPointe

Jimeji said:

Wonka_2 said:

Was there nothing in the contract you negotiated that agreed what the objectives were and on what basis you’d then become ‘employed’ 

if not then now’s the time to get your negotiating head on - but can you afford to go it if their net outlay is to remain the same whilst they’re paying your benefits/holidays etc ? 

No, nothing in the contract about moving to a permanent contract. That was all verbal. 

My question is, is the company acting lawfully? I've heard that HMRC can look unfavourably at this style of agreement.

this is more related to the IR35  , is it actually  Self employed aspect, without further details on the arrangement in question  that  may be open to debate