Legal question regarding work

sHo0sH · 18 May 2011 at 13:50

So my boss has just said to everyone in the office, that we all need to register as self employed. If we don't do this, we have to take a cut in our commission rates.

The job is well paid, but its on a commission only basis.

Legally he can't force us to become self employed can he?

b.cummins · 18 May 2011 at 13:56

Check with the CAB before you commit to anything!

spudbynight · 18 May 2011 at 14:00

What is your current status?

If you are currently employed you can leave and become self employed at any point. If you don't agree to this he needs to terminate your employment. If you are employed for less than a year there is nothing that you can really do.

As regards commission rates, these can't be changed at will. Even if they are not in your written contract you will have a de facto contract as the commission has been paid as custom and practice.

LOAM · 18 May 2011 at 14:12

Sounds like he’s in trouble and wants to terminate employment in the near future tbh. Self employed / contract staff would get no redundancy pay, no sick pay, no holiday pay etc etc.

If it were me I would be wanting far more than just an increase in commission. Base salary would have to increase significantly as well.

sHo0sH · 18 May 2011 at 14:16

The company is definitely not in trouble, we make a LOT of sales!

I think he just doesn't want to pay out NI contributions on the money he pays us (some people here are taking home £4k a month after tax atm).

Pestilence · 18 May 2011 at 14:23

He can't force you to sign up as self employed. Are you currently a FTE?

If so, and you've been there over a year, he has to go through normal methods of terminating your current employment contract.

sHo0sH · 18 May 2011 at 14:28

Everyone he has asked have been here from December, so all under 1 year.

Cuchulain · 18 May 2011 at 14:30

sHo0sH said:
The company is definitely not in trouble, we make a LOT of sales!

I think he just doesn't want to pay out NI contributions on the money he pays us (some people here are taking home £4k a month after tax atm).

Yeah, only thing with that is the Inland Revenue will not be pleased, chances are they will still consider you an employee and your boss will still be liable for employers contributions:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_4015975

aspirins · 18 May 2011 at 14:31

sHo0sH said:
The company is definitely not in trouble, we make a LOT of sales!

I think he just doesn't want to pay out NI contributions on the money he pays us (some people here are taking home £4k a month after tax atm).

Doesn't work like that though really... If you're self-employed, and given you're all currently employed it's likely you'll either fall under IR35 or have to pay employers NIC yourself through an umbrella co. Either way someone still pays the employers nic, by making you go self employed you pay it, an therefore you have less income. Unless he increases your pay to take this into account, in which case, why bother?

Vonhelmet · 18 May 2011 at 14:33

I think he'll have fun at his next PAYE compliance review.

Pestilence · 18 May 2011 at 14:34

sHo0sH said:
Everyone he has asked have been here from December, so all under 1 year.

Ah, right. In that case you're pretty much stuck as he can terminate the contract for whatever reason he sees fit.

That would then force you to sign as self-employed (contracting to him) if you wish to continue working there.