Overseas Contract Question

**Sockpuppet** · 24 March 2013, 11:01

Originally posted by JasonB View Post

Hi,
I am relatively new to the contract side of things as have been permanent all my working career. I have a query about a new position that I may be taking and want to ensure moving to a contract is safe.

The company in question is in Canada and they are very large in my sector. They have shown they wish to employ me, but as they do not have an official office in the UK yet, they would have to put me on a contract; even though I am permanent staff. If there was an office in the UK then they could legally fully employ me.

Does anybody have any knowledge no this or is it treated as being on a normal contact? I am a little dubious as I have heard horror stories at the way in which US, and Canada hire fire people at will.

Is there some information on the web that would help.

That's bollocks

They can put you on a perm contract or even a fixed term perm contract with ease.

In any case even in the UK for the first year you have no employment rights and can be made redundant for any reason, improves a bit in the second year but you don't get any redundancy pay. Take the contract, go umbrella as you'll be IR35 caught if you are a perm employee.

**kingcook** · 24 March 2013, 11:58

Originally posted by Sockpuppet View Post

That's bollocks

They can put you on a perm contract or even a fixed term perm contract with ease.

With ease? So the Canadian government let anyone work in(*) their country without the need for bothering with a visa?

(*) Not necessarily "in" Canada, but working for a Canadian company.

**jamesbrown** · 24 March 2013, 12:46

Originally posted by Sockpuppet View Post

That's bollocks

They can put you on a perm contract or even a fixed term perm contract with ease.

In any case even in the UK for the first year you have no employment rights and can be made redundant for any reason, improves a bit in the second year but you don't get any redundancy pay. Take the contract, go umbrella as you'll be IR35 caught if you are a perm employee.

Not true in my understanding. If the foreign company does not have a payroll presence in the UK (through which they can comply with local legislation), the OP will have to contract for them through their own company. In my understanding, to do otherwise, would expose the foreign company to a host of legal issues, as well as the practical issues of tax withholding.

Also, AFAIK, many umbrella companies will not invoice foreign companies (perhaps others can confirm?).

**BlasterBates** · 24 March 2013, 13:42

Absolutely.... there´s no way a Canadian company can put you on their payroll. Either they set up a company in the UK and they employ you through that or you set up your own company and bill them in Canada. It sounds like you will be self-employed.

**Sockpuppet** · 24 March 2013, 18:22

You all misunderstand

It cost me a hundred quid or so to set up a "UK presence". If this company is a large player than doing that shouldn't be hard.

**kingcook** · 24 March 2013, 21:02

Originally posted by Sockpuppet View Post

You all misunderstand

It cost me a hundred quid or so to set up a "UK presence". If this company is a large player than doing that shouldn't be hard.

If it cost you a hundred quid or so i'm guessing you're a UK resident? With a UK address? Of course i'm just assuming and may be talking bollocks

**jamesbrown** · 24 March 2013, 21:19

Originally posted by Sockpuppet View Post

You all misunderstand

It cost me a hundred quid or so to set up a "UK presence". If this company is a large player than doing that shouldn't be hard.

What precisely do you mean by a "UK presence"? Do you mean a UK company through which you are contracting (i.e. contrary to your earlier advice) or a UK subsidiary of the foreign corporation that took you on as their permanent employee? You're right insofar as I don't understand what you're saying....

Overseas Contract Question