Contract? What Contract?

[MojoDog]

Hi,

I’m in a contract that’s due to complete at the end of August.

I’m an independent contractor (Ltd Co) placed with the client by a company acting as a ‘body-shop’ (that is, they also supply their own permie staff to work at the client’s site) rather than a traditional agency.

So far, all is going well. I’ve got work coming out of my ying-yang with a work plan that extends well into 2015. The client seems to like me, the bodyshop seem to like me and always pay up on time.

Happy days.

Spoke with my point of contact at the bodyshop today. He says that they are raising a Purchase Order to extend my contract for a few months but said that he can’t give a firm extension date.

When I asked him how he could raise a new contract without a firm date, he said “usually we don’t bother, we just continue with rolling extensions. But if you want one we’ll get it sorted.”

This got me thinking… So far I’m happy with the rate and other Ts&Cs so nothing really needs to be amended and unless I Foul things up I'm as confident as any contractor can be that work will continue to be forthcoming.

My question for the forum is:

What are the implications for me if I don’t get a new contract but continue with the terms and conditions of the original (but out of date) version?


Are there any IR35 issues likely to arise from not having a renewal?

Any advice gratefully received.

[Antman]

There are others with much deeper perspective than me but my tuppence:-

What does the original contract say? If it's for a specific piece of work then that finishes and you carry on there it would look very much like disguised employment.

EDIT: so screaming out "Inside of IR35"!

[MojoDog]

There are others with much deeper perspective than me but my tuppence:-

What does the original contract say? If it's for a specific piece of work then that finishes and you carry on there it would look very much like disguised employment.

EDIT: so screaming out "Inside of IR35"!

FFS!

Of course...!

How could I be so stupid?

Thank you

[speling bee]

FFS!

Of course...!

How could I be so stupid?

Thank you

So agree a new Statement of Works.

[MojoDog]

So agree a new Statement of Works.

My thoughts exactly. Of course, we can keep this to ourselves, right? No need to broadcast what a complete numpty I've been...

sometimes wonder how I manage to breathe, talk and walk upright...

[Antman]

Don't worry that's what General's for!

[ChimpMaster]

So what happens if your original contract runs out but you remain working for this client?

Effectively you're working out of contract aren't you? Or is it 'implied' in law that you are working under the previous contractual terms, even though it has passed its termination date?

Many moons ago I read that not having a contract was the most effective way to prove yourself out of IR35... though of course much has changed since then.

[jamesbrown]

So what happens if your original contract runs out but you remain working for this client?

Effectively you're working out of contract aren't you? Or is it 'implied' in law that you are working under the previous contractual terms, even though it has passed its termination date?

Many moons ago I read that not having a contract was the most effective way to prove yourself out of IR35... though of course much has changed since then.

Nah, it just removes the written contract as a first check and prolongs the ordeal - no advantage of not having a contract in any context (inc. IR35). Ultimately, the working practices are decisive. And, yes, the contract is implied in fact if the OP is doing the work and getting paid. Not a good idea, though, when it comes to arguments about contractual terms.