Sub contract/ Sub contract labour

Been working as a regular subcontractor for a company the last six years, as and when needed. Sort of providing the cover an agency worker might but with reduced costs for the company.

I have heard something along the lines this might be known as 'sub contract labour', which has a few diferences to being a proper subcontractor. Confusing? Yes. It worked like this;

The length of time I have worked in excess of 40 hours has been more than six months, only broken for a weeks holiday

I was on an hourly rate most of the time.

I rarely provide materials

I can be moved around from job to job as they require

I can be laid off with no notice.

I get taxed CIS

The main differnce is a Subcontractor would normally work on a fixed price, and work on one project at a time, and supply materials.

It's likely the contract will end soon, late Novemeber at the latest, and someone has put me on the trail that I may be entitled to holiday pay, or a full time job with employee rights.

I have spoken to the benefits ageny, who put me on to ACAS and they say only an employment lawyer can advise on this.

Has anyone had any experience of this sort of thing? Anything I am entitled to will help with the long Winter ahead.

you probably need to talk to an employment lawyer. I suspect the answer will be very much dependent on the detail of the contract between you and the other firm.

you probably need to talk to an employment lawyer. I suspect the answer will be very much dependent on the detail of the contract between you and the other firm.

Nothing written- has been a work is here if you want it basis, but I have the remitance slips to prove it was all above board.

Nothing written- has been a work is here if you want it basis, but I have the remitance slips to prove it was all above board.

In that case, you really do need to speak to an employment lawyer. Without anything written down, the key things that make you an employee rather than a sub-contractor may not provable. Your also left with a "his word against yours" situation if there is any sort of disagreement between how your working relationship should have worked.

This is a very grey area and open to lots of discussion.

Generally if a person is self employed as a sub contractor they are better off financially than if they are employee's.

In some instances you will earn more per hour self employed than you would as an employee and from your gross pay you can deduct your business expenses and be taxed on the net amount.

The downside is you are not entitled to sick pay or holiday pay or ultimately redundancy pay. And if you don't have any work you don't receive any pay.

But generally whilst you are in work you are better off financially as a sub contractor.

However HMRC have laws which say you cannot really choose if you are employed or self employed. That distinction is a matter of fact.

I don't think there is any actual difference between a sub contractor or sub contract labour. So this further adds to the confusion.

I feel that if you are classed as a sub contractor / sub contract labour / self employed it is all the same. Just different names to describe the same thing.

In all of those cases you are not an employee and as such are not entitled to any sick pay or holiday pay.

And potentially if you start to query your definition too much HMRC could start an investigation into you and the company you work for. That could be very costly all round.

Better to leave things as they are for now and do some research as to whether you wish to remain a self employed sub contractor or become an employed worker.