I have just received the Christmas gift of redundancy consultation. Nice.

I am the only employee in the company who performs my specific job role and I have been told that it has become a redundant, however the exact same job role is also performed by a pool of 12 self employed contractors.

No effort has been made to reduce the number of contractors to mitigate staff redundancies and the company will continue to provide the same service to our clients in the future using only the self employed contractors. The contractors are effectively disguised employees due to the type of work and contractual arrangements with the company.

My manager is fighting to keep me, but the redundancy process is being driven by US management in a massive cost cutting effort. Company policy prevents me from transferring from employee to contractor, so I have been given the chop.

It all seems a bit off in my opinion and I have booked an appointment to get legal advice on this, but what is the general consensus – am I getting shafted due to cost cutting or it that just how it rolls these days?

Cost cutting. Employee doing the same job may be a higher overhead cost or seen as a long term liability, and might even be looking at getting redundancy over with now for a lower cost than doing it later.

Those contractors are easy hire and easy fire. They may be out the door when necessary. No fuss to them. Move on to the next job. Then as work picks up, get some back in. Less costly and much quicker to recruit contractors, and indeed to fire them.

Anyway, I’d be first of all looking for another job. You may get something way better. Also you may get a nice pay out.

Being shafted? Probably, but that’s business. Challenging the unfairness of it, you can do, though tough against a US company especially without a union. You could be dragging out for a long time. Or cut your losses and move on. Had it a few times myself and life is too short to stress about it.

You could also consider going contracting 😉

I woud bee surprised if this complied with employment legislation; contractors doing same (substantive) role out first.
Do you have any form of ‘representation’ – union or professional body you can contact?

US management may not be conversant with UK legislation; this could work in your favour if they have not communicated and followed the consultation process to the letter – which, I believe, should include all reasonable attempts to redeploy those affected; if you can adequately demonstrate that the contractors are doing the same role and are being retained that should help your case.

How ‘massive’ is the scope of the cost cutting? How many roles from what size of workforce? Have the company financials been declining? Have the company offered any form of supported job search or (re)training support?

To answer your question and based on your post I would say, on balance, you’re being shafted.

I hope it woks out for you.

While contractors aren’t included in redundancy, they are probably in a tight spot.

Employers have a statutory duty to consult on ways to minimise redundancies. Sounds like you have an easy solution – lay off a contractor. You *could* have a case against them for unfair dismissal (if you have enough service) and for breach of redundancy law but you really need a specialist to advise.

Talk to ACAS. But also be looking for another job – if you survive this then your card is probably marked.

When you say

The contractors are effectively disguised employees due to the type of work and contractual arrangements with the company.

two things spring to mind:
1 – are they actually self-employed or are they workers/employees (see uber, etc)
2 – IR35

When I joined the company I had the option to be an employee or contractor for the same job role. The reason I didn’t go the contractor route myself was the terms and conditions met every requirement of IR35.

The contractors work exclusively for the company and are prevented from proving the same service to anyone else. The company dictates how and when the work will be carried out, not the contractor.

Whatever happens it appears to be time too move on. I have applied for several jobs, In the process of starting my own company for consultancy work and shall be speaking to an employment law solicitor in the morning, so I have a number of options covered.

as ive said previously and others have also said, if they want you out to save money out youll go, despite rules and laws,to make it illigal or not correct theyl just bend the rules.

Go see a solicitor it will be expensive, and may not help.