Specialising in employment status and contract terms since 1997
this is a complex area of law with complicated tests
Employees have a wide range of employment rights including the right to claim unfair dismissal and redundancy. Other kinds of arrangement could mean that the individual is a worker with fewer rights, for example without the rights mentioned or no right to minimum notice of termination. A self employed individual has even fewer rights. The application of PAYE tax and employed NICs has historically been affected by status. For this reason the hiring of individuals on a basis other than employment has facilitated flexibility in the workforce, and has become very popular in the UK over the last two decades.
A job described as being ‘outside IR35’ may in fact fall within the scope of the rules
understanding employment status…. and using the right contractual terms…are factors that every employer and hirer will be interested in
Whilst we share the widespread view that the tests in this area are outmoded, the lack of certainty being problematic (the rules around employment status may be changed in the coming years following the Matthew Taylor review), it is the position that wherever hiring on any basis other than employment, understanding employment status is a critical factor. It is then also critical to use the right contract terms taking into account the issues and risks that may arise. Use of a third party engager does not guarantee removal of the risks and chain supply compliance, ensuring that contract and rights arrangements are set up and operated correctly, is a factor that every employer and hirer will be interested in.
Lawspeed offers advice, status assessments and contract terms applicable to a wide range of arrangements. IR35, managed and consultancy services are key topics of interest arising in 2019.
For more information about our services call 01273 236236 or use our contact form.