Riddle me this
Most small businesses would struggle not to be seen as 'employees' for contracted work.
Let's say a small five man business (Polly's Patter Ltd) win a contract to deliver a four training days a week over a three month period for Nationwide. Clearly there are meetings, prep, checks, amends, delivery across multiple sites across the country. It's expected to take 6 months, but actually takes 12 months.
Rather than providing two 6 month fixed-term contracts, the contract is instead renewed on a quarterly basis. It's stipulated that all design and development must be done onsite at their head office as there'saccess to sensitive information. Some meetings are at other locations and as written delivery is at multiple locations across the UK. Anyone operating onsite will need to have gone through security vetting.
Would Polly's Patter Ltd an employee of Nationwide? Almost everyone would say no, right?
Clearly though there's not enough information.
You need information on the employees of Polly's Patter.
Polly is the Managing Director and won the contract. Her skillset lies in sales.
James is Head of IT, which means he's computer literate.
Paul is Polly's husband. He is a Director of the company, but owns is own business. He is therefore not an employee. He is a qualified Structural Engineer.
Lynn is a learning specialist and has 10 years experience delivering face to face corporate training courses.
Gregg's a graphic designer, with a good understanding of some elearning software.
Finally, Jane, The Office Manager/Receptionist/Cleaner.
So now, are PP Ltd and employee of Nationwide? Are Lynn and Gregg employees of PP Ltd or Nationwide?
What happens if Lynn becomes longterm sick (just make her redundant?)? Noboday else within PP Ltd has her required skillset... they would have to find a suitable replacement, right, or not get paid.
But given the client's security policy, any substitute could be vetoed by Nationwide.
So tell me, where you believe PP Ltd (or those individuals within the company) become an employee of Nationwide.
Is it when over 80% of their income comes from Nationwide?
Once the rolling contract goes past a set length of time?
When a certain percentage of PP Ltd staff are dedicated to working on the contract?
When Nationwide veto Jane as a non-qualified replacement for Lynn?
When Nationwide veto James for being on site as he has a historic criminal record?
When Nationwide veto Paul onsite as he was made bankrupt 15 years ago?
When PP Ltd subcontract/outsource to Another Co Ltd to fulfill the contract which actually goes against the contract signed?
When HMRC spend taxpayers money to fight the case and a judge flips a coin?
Biting the hand that feeds IT
