Permie wanting to sign up as contractor

[homer77]

Hello everybody,

I hope i have posted this in the right section, i beleive it is a legal issue of sorts.

my issue is that i am a permie for company A, however i work full time for a client of theirs. what i want to do is to leave company A, (pay is rubbish and they wont even consider a pay rise) and work for the client (job acuired through an agency) as a contractor.

is this possible, i have been through my contract and i cannot see anywhere that it states i cannot leave and then return as a contractor, its got the usual spiel of confidentiality, non soliciting etc...

i have spoken to the client and as far as there concerned they dont care who i work through and have spoken to the agency that has advsertised the job as contracting and they are happy for me to this obviosuly, just need to know legality of this before i hand in my notice to comany A?

thank you in advance

[Wanderer]

i have spoken to the client and as far as there concerned they dont care who i work through and have spoken to the agency that has advsertised the job as contracting and they are happy for me to this obviosuly, just need to know legality of this before i hand in my notice to comany A?

Welcome!

Apply for the contract, if you get it then speak to your company about going and working for one of their clients. I can't really see that they could stop you unless you have a golden handcuff clause in your permie contract.

[lje]

Companies often have agreements between them not to poach each other's staff. I'd check again with the client that there are no such issues.

[chef]

From a legal point of view unless your permie contract has a clause stating you cannot work for clients then I believe there is no issue there (however, I am not a lawyer)

The only issue I see you having is an IR35 point of view. If you are going from being a permie working full time for Client A and then doing the same job for the same client as a contractor then unless you diversify and provide services to mulitple clients other than client at AT THE SAME TIME as working for client A then HMRC will see you quite rightly as a permie in disguise rather than a true business, mainly because they will say nothing has changed form when you were permie to when you were a contractor other than you're now being paid more and so they will see you as inside IR35 meaning you'll pay more tax.

[MarillionFan]

From a legal point of view unless your permie contract has a clause stating you cannot work for clients then I believe there is no issue there (however, I am not a lawyer)

The only issue I see you having is an IR35 point of view. If you are going from being a permie working full time for Client A and then doing the same job for the same client as a contractor then unless you diversify and provide services to mulitple clients other than client at AT THE SAME TIME as working for client A then HMRC will see you quite rightly as a permie in disguise rather than a true business, mainly because they will say nothing has changed form when you were permie to when you were a contractor other than you're now being paid more and so they will see you as inside IR35 meaning you'll pay more tax.

WHS

Most companies don't have an exclusion in their contracts. Obviousily companies get pissed off if their clients solicit their staff continuosly but doesnt look an issue here.

[homer77]

hi guys,

thanks so much for the advice, i figured as much but thought i should get further advice.

i can post the the contract on here if needs be, or if am even allowed??

not worried about IR35 have been contracting for the past 5 years, this was the 1st permie job i have taken since leaving uni, only becasue the client is in the financial secotor and i have been gagging to get into that area for a while now... even with being inside IR35 i will still get paid way more every month than i do as a permie!

thanks again guys, its much appreciated

[northernladuk]

You can post it but dont expect many answers. We arn't legal experts and most of us are too busy to be picking through contracts. It's your contract and it's your responsibility.

IMO going contracting for a client that your full time at is dodgy ground. I would go in to it with the full expectation to get knocked back just on grounds people are pissed off u are getting paid more to do the same if there isn't a clause.

Don't assume anything in that position is my advice.

[homer77]

no probs, i dont think i will get knocked back as its prity much a done deal, i just wanted to know the legality of leaving perm to then sign up as a contractor thats all.

the answers i got have been enough to confirm my thoughtss in the first instance.

thanks again for all the advice...