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Presentation given to B2i Focus Networking Group talking about the pros and cons of Sub-Contractors v Employees.
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B2i Focus Group
Mandy FitzmauriceChange Partner HR
Dec 13 2010
Employ
Sub-Contract
June 7 2010 Page 4
The objective today..
June 7 2010Good decision…
June 7 2010
Your customers love you, they want more but there’s
only so many hours in the day and you simply can’t do
it all yourself - so you call in reinforcements….
June 7 2010
Time to move on to the next level…
June 7 2010
What’s the benefits of using Sub-Contractors?
FlexibleSpecialist skillsControl costsNo PAYE/NICsTemporaryPay as you goNo employment
rights
June 7 2010
On the other hand, there are risks:
Can be expensive No commitment Reliability Competence Safety Insurance Confidentiality Quality of work
and …
June 7 2010
You need to guard against any challenges from HMRC:
! Written Agreement! Own tools/equipment! Substitute! Bear £ risk! Fixed price work! Freedom to decide what,
how & when to work! Regularly work for others! Correct poor work @
own cost & time
Flexible Specialist skills Control costs No PAYE/NICs Temporary Pay as you go No employment rights
Can be expensive No commitment Reliability Competence Safety Insurance Confidentiality Quality of work HMRC issues
June 7 2010
What about being an employer?
Continuity Control Fixed cost Quality Reliability Commitment & loyalty Ownership of expertise Legally protected Good PR Competitive advantage
June 7 2010
And the downsides?
Employment RightsCosts +11% (PAYE/NICs)+ 3% Pension from 201228 days paid holiday39 weeks Maternity Pay52 weeks Maternity LeavePayroll administrationDifficult to changeEmploying the wrong peopleAdded responsibilitiesPressure on cash flowLegal and Safety compliance
Continuity Control Fixed cost Quality Reliability Commitment & loyalty Ownership of expertise Legally protected Good PR Competitive advantage
Employment Rights Costs +11% (PAYE/NICs) + 3% Pension from 2012 28 days paid holiday 39 weeks Maternity Pay 52 weeks Maternity Leave Payroll administration Difficult to change Employing the wrong people Added responsibilities Pressure on cash flow Legal and Safety compliance
So, which way is best for you?
What factors are most important to
you?
June 7 2010 Page 17
Are you ready to cast your vote?
June 7 2010
B2i Focus Group
Mandy FitzmauriceChange Partner HR
07990 776021
Merry ChristMas & happy New year
