camk

My mates been contracting for 20 months for a company in London, hes been told that the contract is coming to an end. However someone also told him that because he's been there so long, despite working for himself and not under PAYE that he is entitled to redundancy. Anyone know if this is true. He's been invoicing the firm directly and not through an agency.

BlkKnight

To get redundancy he must be an "employee" NOT a contractor.

There are various tests to determine wether he was an employee (under contract) or an independant contractor.

If they want to give him money - don't worry about it

camk

The company are not offering anything, it was another mate

scoob_babe

have a look around this site http://www.itcontractor.com
I'm sure I've seen something on this subject before.
Rules have changed lately for contracts whcih run over 12 months in duration. I originally had a 6 month contract and, due to some kind of legislation, I could only be offered another 3 months extension as the 6 months would have put me over an exact year (just!). I took the permanent job anyway so I didn't investigate further.

john_s

iTrader: (1)

My take on it is that a contractor would have no right to redundancy unless you can prove that you have effectively become an employee.

Also, you have to have worked somewhere for 2 years before you're entitled to redundancy pay.

John.

ozzy

Does he pay IR35? 90% of the people in my work are contractors. Some have been there for 8-9 years Their contracts are 6mths and have been continually extended. AFAIK, they have no comeback with redundancy. Their security is 1 weeks notice and that's about it. Some have had a weeks notice after 2 years with us and they never complained other than being disappointed about having to look for more work.

Stefan