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Old 17-10-19, 07:48 PM   #1
Adam Ef
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Default Employment terms contracts?

I've always been self employed but in recent years have wanted not to be. Especially as I tend to end up doing regular days for a couple of people and it often gets questioned by my accountant. I also tend to only get paid what a PAYE job would be too, which is definietly not right but that 's the way industry I work in works (or doesn't).



Considering trying to persuade one of my employers to take me on PAYE but when I last had the conversation with him he didn't want the hassle of setting up payroll and thought it would be too expensive on his part paying holiday pay / sick pay etc and his small business couldn't afford it.


So I was wondering what normal terms are for employed work as far as sick and holiday pay goes? Another place I work (randomly, so definitely need to be self employed there) doesn't pay employed staff any sick pay but does pay holiday pay. Is that allowed? Is it different for every job (I imagine it is)? Are there any accepted standards?


Also what other costs would my main employer be looking at? I currently pay my own NI contributions and taxes, accountant etc. After all my costs my earnings per hour are a joke really. Would it be a lot more expensive for him to employ me?


Any advice / real world examples appreciated.
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Old 18-10-19, 08:33 AM   #2
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Default Re: Employment terms contracts?

I'm not involved in HR, so you might get a better answer from someone who is, but here's my 2d worth.

Sick pay: the minimum a UK employer can do is 'statutory sick pay' for 28 weeks. If you are contracted for less than a full week this will be reduced pro-rata.

Holidays: full time employees in the UK must receive 28 days paid leave per year minimum, however this includes eight bank holidays so in practice it's four weeks. Again, this will be reduced pro-rata for part time employees.

In addition there would be Employers NI to be paid which is just under 14% of salary, and they would be obliged to provide a pension scheme. Unless they have other employees that means a whole lot of extra work, and some extra costs. With less than 10 employees it's probably worth contracting out the administration and focusing on the important parts of the business, but of course that means more fixed costs.

Just my thoughts,

Keith.

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Old 18-10-19, 08:44 AM   #3
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Default Re: Employment terms contracts?

Where I am there is only statutory sick pay, paid holiday 21 days not including bank holidays.
As to no sick pay what so ever? I'm not sure that's allowed - or that's what they would do here.

Sorry, not much help on the rest though.
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Old 18-10-19, 09:06 AM   #4
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Default Re: Employment terms contracts?

I'm with a big company so this may not be relevant for your situation. But from memory my terms are something like:

Sick pay: 3 months full pay, 3 months half pay, then SSP and a review with HR on whether you're going to be fit to return to work.

Holidays: Starts at 20 days + public holidays and increases 1 day/year to a maximum of 25 days.

Pension: My employer matches employee's pension contributions up to 6% of salary. This increases to something like 8% as you get closer to pension age. My employer also covers most of the costs of running the pension scheme.

Benefits: We now have a flexible benefits system where we can select things like health cover, life insurance, cycle to work scheme, etc. These all reduce the base salary but have tax advantages. This scheme is bought in from a specialist supplier who does all the administration and IMO is only suitable for large employers.

Notice period: During probationary period, none. Thereafter 4 weeks. For senior roles this increases by 1 week/year to a maximum of 12 weeks. In practice this is usually waived unless you are going to work with a direct competitor and 1 month is the norm.

From a small employer I wouldn't much more than statutory minimum in all these areas.
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Old 20-10-19, 05:45 PM   #5
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Default Re: Employment terms contracts?

Quote:
Originally Posted by Adam Ef View Post
After all my costs my earnings per hour are a joke really. Would it be a lot more expensive for him to employ me?

Yes, it would cost more.
Which is why the gig economy exists and is increasing.

http://unitelive.org/gig-economy-doubles/
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Old 20-10-19, 05:48 PM   #6
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Quote:
Originally Posted by shiftin_gear98 View Post
paid holiday 21 days not including bank holidays.
Presumably you get paid for the bank holidays as well?

If not your employer is breaking employment law.

Minimum paid holiday in UK is 28 days.
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Old 20-10-19, 05:55 PM   #7
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Default Re: Employment terms contracts?

Quote:
Originally Posted by Talking Heads View Post
Yes, it would cost more.
Which is why the gig economy exists and is increasing.

http://unitelive.org/gig-economy-doubles/

That's essentially how I'm working. Expected to be there regular days every week but that can be cancelled at any time. I have to invoice, but am paid PAYE rate (near minimum wage) and cover all my own costs, NI, accountant, bills etc. I have no pension. No contracts. No security. The alternative is walk away from it and have no work though.
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Old 20-10-19, 06:13 PM   #8
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Default Re: Employment terms contracts?

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The alternative is walk away from it and have no work though.
That's what the swines want you to think, but there's always alternatives.
Although your workplace may not (yet?) have a recognised trade union, there's nothing preventing you from joining one and seeking some help/guidance with your situation from your union.

Union membership can definitely be of benefit to gig economy workers:

https://www.theguardian.com/business...over-pay-rates

I'm a Unite Shop Steward and encourage all workers to join and actively participate in a trade union.
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Old 20-10-19, 06:48 PM   #9
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Default Re: Employment terms contracts?

I work for two small independent shops as a mechanic. There's a handfull of people covering days at each. Others will step in and have days if I don't.
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Old 20-10-19, 08:11 PM   #10
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Originally Posted by Adam Ef View Post
I work for two small independent shops as a mechanic.
In which case you have valuable skills and experience.
There will be something better out there for you.

https://www.indeed.co.uk/Vehicle-Mec...obs-in-Bristol

Last edited by Talking Heads; 20-10-19 at 08:14 PM. Reason: link added
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