With all the red tape nowadays it can get very confusing whether someone is an employee and if so do you need to issue a contract of employment. Do you employ a nanny or someone to do your part-time admin? Do you know what type of contract they should have?
There are some very complex and also some very simple tests to determine whether someone is an employee of a subcontractor. As a small business owner at the beginning, it is advantageous to have subcontractors to help out when you need to use them. Generally, this is to do some ad-hoc admin or tackle the social media you always mean to get round to.
One of the easiest tests to determine if someone is an employee or not is if you allow them to work for other people. If they are you a subcontractor contract should suffice. It will state they can work for other people their rate of pay and what happens if they can’t complete a project. It should also detail that they are responsible for any taxes and NI payments.
That doesn’t mean that just because you allow someone to work for other people you are fine but it is a good initial understanding.
I know I can hear you saying ‘it’s okay they are my mate I’ve known them for years ‘. But what happens when you have a fallout and your ‘mate’. What happens when they realise that you haven’t been following employment law. It is a lot easier to get your ‘mate’ to sign a contract at the beginning and it keeps everything transparent.
As a small business, you are spinning a lot of plates that is why I can help you make sure you stay legal. If you don’t currently have documentation in place I can assist with looking after you and your ‘mate’.
If you already employ someone but they don’t have a contract of employment and you think they are a subcontractor then try the HRMC Status Checker this is completely anonymous and will tell you if you are an employee or a contractor.
Feel free to give me a call to discuss any specific issues you may be having.