Weekend Rates

[JoJoGabor]

Had a contract reviewed for IR35 compliance and one issue that was highlighted was of overtime rates. I can understand removing anything such as "any time over 40 hours will be paid as time x 1.25" but surely it is fine to state something along the lines of weekend work will be charged at day rate x 1.5?

[Clare@InTouch]

I don't see it as a deciding issue, I accept that if I call a plumber out on a weekend he'll charge me more than if I call him on a normal working day. That doesn't mean he's my employee.

It depends on the rest of the contract though. Did it pass any one of the trinity? Control - Substitution - Moo?

[JoJoGabor]

Yes it passed on the other three major points

[northernladuk]

I have personally never seen 'overtime at 1.5x in a contract'. This smells of permie terms so agree it needs taking out or at least use different terminology to 'overtime' and to be honest unless there was going to be weekend working I wouldn't put it in the contract at all.

Any weekend working I have ever done I have billed at normal time or in some cases arranged below the radar day off but billed with manager. To be fair this hasn't been enough to warrant agreement in contract or fall out with client about.

Remember anything above and beyond the daily rate isn't budgeted for and will often need complicated approval and eyebrows will be raised at £600 per day etc. Time and half is ok but when that is £200 (on a £400 day rate) it will be difficult to justify it.

[Clare@InTouch]

Yes it passed on the other three major points

It's probably related to the phrasing then. The way a clause is worded can make so much difference to it's interpretation. "Overtime" is an employee concept, and yet there's nothing wrong with a genuine contractor charging extra for hours worked at unsocial hours/in excess of agreed timescales.

[JoJoGabor]

It's working for a consultancy so I guess they are charging their client double time at weekends, I was surprised it being in the standard contract which is otherwise very IR35 friendly.

I thought about this and I just Wouldn't feel right billing over £1000 for a days work at weekend, so I said all work would be at standard rates, there will definitely be some weekend work.

Call me soft, but hopefully they will appreciate the gesture.

[Wanderer]

Wouldn't feel right billing over £1000 for a days work at weekend...

Eh? I can't see any problem with that.

Are you sure you're cut out to be a contractor?

[northernladuk]

It's working for a consultancy so I guess they are charging their client double time at weekends, I was surprised it being in the standard contract which is otherwise very IR35 friendly.

I thought about this and I just Wouldn't feel right billing over £1000 for a days work at weekend, so I said all work would be at standard rates, there will definitely be some weekend work.

Call me soft, but hopefully they will appreciate the gesture.

Again I would argue this. My client doesn't charge his client extra for weekend work. They are providing a service not a T&M. Any extra time is discouraged unless needed again because it needs extra authorisation due to it being above the agreed budget. It's not impossible but it has to be dealt with at each instance.

[jamesbrown]

Simpler/cleaner to retain a single rate, which could reflect the likely weekend work to be completed, along with the many other things that a rate reflects....

[JoJoGabor]

Eh? I can't see any problem with that.

Are you sure you're cut out to be a contractor?

Ha! Don't you start!