Aug
09
2010
Umbrella company users: Job contracts 'highly recommended'
Posted by Daniel Frost
In certain circumstances, it is possible to reject a contract that could create IR35 issues and to work while a new agreement is drawn up, it has been claimed.
David Buckle, head of employment practice at Cubism Law, has told ContractorUK that it is possible for a monthly invoice to work in this situation where there is an established relationship with the organisation and it is clear what each party will do, although this is not advisable.
He highlighted the fact that this could be a viable short-term solution, as signing could make the situation worse, but he warned that this might not be ideal in terms of providing the contractor with legal protection.
"Operating without a written contract means the terms of your relationship may not be clear. If anything goes wrong, you will be exposed," Mr Buckle warned.
Last month, Gary Cousins, a solicitor at Cousins Business Law, told Brookson.co.uk that using an umbrella company can help contractors to deal with difficult practices such as keeping balance sheet records.
In certain circumstances, it is possible to reject a contract that could create IR35 issues and to work while a new agreement is drawn up, it has been claimed.
David Buckle, head of employment practice at Cubism Law, has told ContractorUK that it is possible for a monthly invoice to work in this situation where there is an established relationship with the organisation and it is clear what each party will do, although this is not advisable.
He highlighted the fact that this could be a viable short-term solution, as signing could make the situation worse, but he warned that this might not be ideal in terms of providing the contractor with legal protection.
"Operating without a written contract means the terms of your relationship may not be clear. If anything goes wrong, you will be exposed," Mr Buckle warned.
Last month, Gary Cousins, a solicitor at Cousins Business Law, told Brookson.co.uk that using an umbrella company can help contractors to deal with difficult practices such as keeping balance sheet records.