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Contractor vs Employee

Question: I have been working for the same company for 9 years now. My employment has always been subject to a pretty standard employment contract, governed by our (Hairdressing Industry)Bargaining council rules and regulations. I am not a hairstylist for the record, I deal with all back-office functions.In January this year, when I got back from leave, my boss gave me a new contract to sign which essentially said I would be an independant contractor, not employed by the company, and I would bill my boss for the hours worked. I would obviously receive no benefits or leave etc under this contract. I was also responsible for registering myself as a company and sort out my own tax stuff as I was no longer an employee.

I agreed to this rather one-sided contract at the time because I thought I had a Plan B and wouldn’t be around long enough for it to be an issue. In fact, it fitted in with my future plans perfectly. Since the end of January I’ve been submitting invoices and being paid according to our new verbal agreement. I have yet to sign anything though… he gave me a contract to sign but I stalled and made excuses and I think he’s forgotten it’s not signed – well for the moment anyway. Coincidentally I never signed my previous employment contract either. Both times due to a niggling feeling that it might not be in my best interests. But anyway.

But now that Plan B has fallen through and it looks like I’ll be here indefinitely, and every month there seems to be a new issue in terms of the hours I am billing for, I think it would be safer to return to the security of my previous employer/employee contract and go back to our initial arrangement.

What I need to know is my legal position on all of this? Does the fact that I have not signed the new agreement mean it’s easier to go back to the initial one? Is he obliged to return me to the old contract or, when I challenge him, do I run the risk of losing my job entirely?

Also, previously my work was restricted to Mon-Fri with the occasional Sunday to relieve the receptionist – do I charge for these Sunday hours at the ordinary rate or at an overtime rate if I still work the same normal hours during the week?

Answer: The business world is one of reality and not a scenario whereby you can chop and change your whims and fancies to suit you. Factually, as you have not signed either of the employment contracts, your length of service will automatically entitle you to all rights afforded to permanent employees and, as such, your initial employment contract will take precedence. However, there will be problems as how can you now say you prefer the original contract when you have been living by the “Rules” of the new contract.

I suggest you sit with your employer and make a final decision on the terms and conditions of your employment. Reality tells me that once you tell them you want to revert back to the original contract, that he/she will not be too charmed. In all probability, there is a high risk that he/she will find some way to terminate your services. I, however, do not know your relationship with your employer, but either way you need to resolve the situation and discussion will be the only route of finality.

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