Is it legal for a company to make you redundant as an employee then reinstate you on self employed basis?

Question

I would like to know, as an employee, if it is legal for a company to make you redundant or to sack you, then reinstate you immediately on a self-employed basis - against your wishes?

Answer 1

Sign of the times

Answer 2

If you have been made redundant then your contract has been wiped with the company. All paperwork would be completed and they would of paid what they owe you. They cannot legally enforce you to work for them on a self employed basis.

If you have been sacked the same applies. If the sacking was unfair and this went to tribunal. The court could enforce that they employ you again but on the same basis as before. They cannot have you as a self- employed contractor. It would also be down to you to decide if you wanted to work for them.

Without the full facts it hard to give you the correct answer. If you have any union within your workplace you can talk to them and if you are a member you can decide if you wish for them to represent you. You can also get free advice from any solicitor that deals with employment law. The initial consultation is free. They only start charging once they start working for you.

Answer 3

If they made you redundant, you want to check in your original contract of employment whether they were allowed to do so. If you DON'T have a contract employment and have been with that company more than three months they are in breach of employment law and therefore you could have a case for the Industrial Tribunal. If they demoted you in any way and reduced your job title, they are in breach of employment laws too. I would suggest you speak to an employment lawyer about your case.

Also one thing you want to make sure of if they ARE reinstating you on a self-employed basis and that is to find out WHO out of you or them pays your tax and National Insurance. If they say they will pay, then 1) get this IN WRITING and 2) make sure they give you a proper breakdown of income and deductions that complies with the requirements of Self-Assessment (which you need to do as self-employed) and not pay you cash in a brown cash envelope or cash in hand - ALWAYS ask them to pay for a cheque so you have a real paper trail at your bank of what you had paid from them, and also invoice them for the work done (which you CAN do as self-employed) which is another paper trail.

Also remember that if your turnover (i.e. expenses, income, taxes, etc) exceeds £60,000 you can be VAT-registered so I suggest you also check with them about registering too.

If you do things in the right and legal way, this change from employee to self-employed can work in your favour and be the start of you being able to run your own company instead. Now you are not employed anymore, you can set your own working hours, your own terms of business, your own charges, etc. You can also go to THEIR competitors and offer your services to them TOO. You could Mr So and So trading as So an So Company, and then the next step is to do what your ex-employers were doing but better - by becoming their direct competitor and outsmarting them. ;-)

Answer 4

This is a bit dodgy. When someone is made redundant, its not the person but the position that is being got rid of. In this case, if there is a case to say that the position (and the work it involves) is still needed the redundancy should not go ahead...but...there may be loopholes that can take advantage of so check it out first with a legal advisor or the CAB.

Answer 5

It is actually the job that becomes redundant, they cannot recreate it for six months.
If you are employed to do the same job, within that time, then they may well be breaking the law.
They can only sack you for a misdemeanour, then such a position can be filled as it was the employee not the job.
I think you should clarify your situation so that we can understand exactly what is happening here.

Answer 6

unless you agree the terms they have offered then 100% no seek legal help asap.law states if you have been made redundant your job can not be filled for 6 months unless several people all doing same job and eg half have been made redundant those left can carry on doing your job but no NEW staff can be employed to do your job.the fact is its the job that has become redundant not you ,you just do the said job.

Answer 7

redundancy is sacking an employee but with compensation and its legal with reason however sacking someone say because they have not done a job correctly is not legal as they may have needed training or they did not understand the job and its the company's fault...if a company has made you redunadant then its legal but if they ahve jut sacked you for no compensation then i would go into legal reasons

Answer 8

Once you are no longer an employee, you are free to walk out. If you are self employed, you have no obligation to stay unless you signed a contract for a certain time period. Look at the paper you signed (if there is any) and see what your obligation is. Companies can do whatever, but you don't have to stay if you don't want to.

Answer 9

It very much depends on the reason given - but it sounds fishy to me. Certainly if you were made redundent due to there beinging no longer a need for your role - being employed on a self employed basis to do same job sounds illeagl to me however you can check it all out at: http://www.direct.gov.uk/Employment/Employees/RedundancyAndLeavingYourJob/RedundancyAndLeavingYourJobArticles/fs/en?CONTENT_ID=10026616&chk=SeqN1b

Hope this helps!

Answer 10

I don't think they are allowed to do that as if they make you redundant, they have to make the job redundant and can no longer employ anyone to do that job. If they are re-employing you it would seem that they are filling the job again, which is not allowed.

Good luck x