my boss has told us that he is shutting the company, then he said he is opening another one doing the same thing, and he wants us to go and work for him as self employed, now i think he is going to take the pee out of us, does anyone know any pit falls i should look out for??? and does he have to pay us redudency money and give us notice etc etc???
He may well be trying to pull a fast one, to get you all on as self-employed contractors to get out of his NI and holiday pay commitments. Especially if he is offering to take you on at the same rate as you are on now. Very rough rule of thumb, figure out what you want to earn a year before tax and NI, and work out the day rate that will give you that total for working 30 weeks of the year (5-day weeks).
Big pitfall, the IR have a nasty little term for working self employed for one employer, and it is "Disguised Employment" and everyone tends to get clobbered hard if they think that that is what is going on.
I'd suggest that you don't go near this with a bargepole, and have a chat with the CAB/your union rep regarding your rights.
Whats the nature of the work you/he are in? If you are working on his premises, sitting at a desk he owns, using his tools/ equipment, his phone line, his internet connection through his computers then you're not self employed and nobody (important, like the IR) is going to see it that way.
Perhaps he can explain to you in what sense he believes you will be self employed
....as above. Basically it sounds like he is taking the p**s, he doesn't have any of your benefits to account for. Unfortunately this sort of happened to me however as he won't commit to me I take full advantage by getting extra work on the side.
I'm inclined to agree with the above.
What are you going to do when he walks in an says: sorry nothing to do today see you on Monday?
Do you have the sort of job where you can work for a few different companies doing a smiler job locally?
Do you know your current charge out rate if (if you have one) as I'd think that your rate self employed would be closer to this than you hourly wage.
Finally will you be earning more that on the dole while you look for another job?
put it to him that you and the others will run it as a co-operative and you will take him on as a contracted MD! see if he likes the idea...
I'd say your hunches are right, tread very carefully.
As you say you'll be losing your job shortly anyway - what have you got to lose by working for him as sub contract labour ? It could work well for you and him, especially if he pays you 'self employed rates'. As mentioned above just be carefull with the HMRC thing
Would you be able to have say - a mortgage ?, HP on a car ? etc ?
Do you have to register yourself as Self Employed and be responsible for your own tax, NI contributions ?
How much would a decent private pension cost you ?
No holiday pay ?
No sick pay ?
He sees you and the others as a meal ticket big style..
Go Self Employed but pinch his business by undercutting if necessary ?
Talk to IR people, make the guy's day.