(Self) Employment contract as a primary supplier to a business? - a real thing?

Hey folks,

I have a quick question I'd like to throw out there with ye guys. I'm very possibly in the wrong forum for this, but it's the only place I could really think of to ask (if there's a more suitable forum, mods may feel free to move it if they wish to do so).

(The names and situations here-in are entirely makey-uppy.)


I wash cars for a living, via self employment. It's a bit of a wishy-washy business (har har) in that I take it as it comes and hope for the best.

Recently a car dealership approached me with a car and asked me to spruce it up. Did the job and then they asked me to do a few more. I charged a price-per-car. Since then they asked would I do all of their cars on a contract basis (ie; I get paid the same, regardless of how many cars I cleaned).

After a few emails back and forth, I agreed. Nothing was ever actually written/printed or signed, though.

So I washed a few and cleaned them up a bit but then they came back to me and said that they are altering their business model to focus more on the newer cars and less on used cars. So effectively, they will still have cars to clean, but as I only clean the used cars, there will be less than they anticipated. Therefore they pulled out of our contractual agreement and they want me to go back to the previous system (price per car).


This is where I seek help from ye guys..


They have made it clear they like me and my work. They definitely want to work with me in future and already have lined up some more cars for me.

Thing is, they have in the past used another 2-3 chaps that clean cars. So whilst im their go-to washer, if they have a lot to do in one go, they give it to other people.

Effectively the situation I'm in, is that I went from borderline having a guaranteed contract for 2 years, to instead being back where I started.

My aim, is to take on all of their work (and if i need help, i can delegate it myself). So even though it's a per-car-price agreement, I'd like to have the security of knowing they'll always give me first offer on work, and let me decide what I may or may not be able to do.

What I'd like to know is, is there any way of getting this in writing with them? Is there such a contract that would be able to suit this situation (a situation where neither party knows how busy they'll be, cant guarantee a min/max amount of cars, but where the dealership will sign something to say that I will be the only person they deal with, and if Ive "bitten off more than i can chew" so to speak, then I can get someone to help me out).


(realistically, it would mean that if it does get too busy, I could just get someone to help me clean up the cars, to do them faster, and could pay that person less than I get, so I'd still be profiting. Would mean I could invest in better car wash gear that I can use on my other cars when im not doing the dealers stuff etc.)

The issue I'm having is just trying to figure out how someone would word such a contract.

I've sat down to the PC a few times and tried to write something but can't come up with it. Also not sure what terms to google to get similar situations/contracts.


Was hoping maybe someone here would have an idea?


Sorry for the lengthy post and apologies if I've over-complicated it a tad.

From a fair bit of hefty Googling around, it would appear there is a thing called an 'Exclusivity Agreement'. This may work for me (I think).

Fred Swanson

This post has been deleted.

I don't think that's possible, is it? Once they're paying me a gross amount of money and I pay tax from there, then I remain a separate company, no? Otherwise if I struck the same deal with two car dealers then I'd be an employee of both?

Losty Dublin

Deleted User wrote: »

I don't think that's possible, is it? Once they're paying me a gross amount of money and I pay tax from there, then I remain a separate company, no? Otherwise if I struck the same deal with two car dealers then I'd be an employee of both?

They are as good as dictating your hours, pay, place of work, work conditions, what you di, your minimum standards and your ability to work elsewhere for as long as the contract remains in place. You may as well be an employee so long as they control all of the above.

arthur daly

[Deleted User] wrote: »

I don't think that's possible, is it? Once they're paying me a gross amount of money and I pay tax from there, then I remain a separate company, no? Otherwise if I struck the same deal with two car dealers then I'd be an employee of both?

Can't see thst been possible at all,companies work alongside all the time.a facility beside me is made up of about 9companies(strange but legally just just using loopholes)if they were to assume each others employees I'm pretty sure they would be bankrupt,if it was the case both you and the garage would be paying taxes prsi etc twice.
As long as you keep your book work up to date there couldn't be any confusion presuming you invoice them.

arthur daly

[Deleted User] wrote: »

I don't think that's possible, is it? Once they're paying me a gross amount of money and I pay tax from there, then I remain a separate company, no? Otherwise if I struck the same deal with two car dealers then I'd be an employee of both?

Can't see thst been possible at all,companies work alongside all the time.a facility beside me is made up of about 9companies(strange but legally just just using loopholes)if they were to assume each others employees I'm pretty sure they would be bankrupt,if it was the case both you and the garage would be paying taxes prsi etc twice.
As long as you keep your book work up to date there couldn't be any confusion presuming you invoice them.

arthur daly

arthur daly wrote: »

Can't see thst been possible at all,companies work alongside all the time.a facility beside me is made up of about 9companies(strange but legally just just using loopholes)if they were to assume each others employees I'm pretty sure they would be bankrupt,if it was the case both you and the garage would be paying taxes prsi etc twice.
As long as you keep your book work up to date there couldn't be any confusion presuming you invoice them.

Yeah that's what I thought alright. Otherwise companies would be merging all over the place.


Does anyone know anything of exclusivity agreements or agreements where a particular vendor is a preferred supplier of a service/goods?

Uno my Uno.

Deleted User wrote: »

Yeah that's what I thought alright. Otherwise companies would be merging all over the place.


Does anyone know anything of exclusivity agreements or agreements where a particular vendor is a preferred supplier of a service/goods?

Your solicitor does, you should go and see them. You are manning to enter a legal relationship with this company, you should seek legal advice. It should not be expensive and will be worth it.

blackwhite

arthur daly wrote: »

Can't see thst been possible at all,companies work alongside all the time.a facility beside me is made up of about 9companies(strange but legally just just using loopholes)if they were to assume each others employees I'm pretty sure they would be bankrupt,if it was the case both you and the garage would be paying taxes prsi etc twice.
As long as you keep your book work up to date there couldn't be any confusion presuming you invoice them.

OP states that he is self-employed.
In tax legislation there's a significant distinction between being self-employed, and having established your own Limited Company to use as a vehicle for your trade.
If th OP has set up a Limited Company, then he is an employee of that company and then his own company is responsible for ensuring that PAYE/PRSI/USC etc is deducted from his pay, and passed to Revenue as appropriate.

If the OP is legally self-employed, then any work that he is contracted to do for another company becomes subject to the test of employee v contractor, as expkained by Revenue in the link below.

http://www.revenue.ie/en/business/paye/guide/employers-guide-paye-intro.html#section5

arthur daly

blackwhite wrote: »

OP states that he is self-employed.
In tax legislation there's a significant distinction between being self-employed, and having established your own Limited Company to use as a vehicle for your trade.
If th OP has set up a Limited Company, then he is an employee of that company and then his own company is responsible for ensuring that PAYE/PRSI/USC etc is deducted from his pay, and passed to Revenue as appropriate.

If the OP is legally self-employed, then any work that he is contracted to do for another company becomes subject to the test of employee v contractor, as expkained by Revenue in the link below.

http://www.revenue.ie/en/business/paye/guide/employers-guide-paye-intro.html#section5

From what op says I would think he is a contractor,
Op is responsible to ensure him and his employees are up to date with any taxes regardless of been a limited company or self employed.

arthur daly

blackwhite wrote: »

OP states that he is self-employed.
In tax legislation there's a significant distinction between being self-employed, and having established your own Limited Company to use as a vehicle for your trade.
If th OP has set up a Limited Company, then he is an employee of that company and then his own company is responsible for ensuring that PAYE/PRSI/USC etc is deducted from his pay, and passed to Revenue as appropriate.

If the OP is legally self-employed, then any work that he is contracted to do for another company becomes subject to the test of employee v contractor, as expkained by Revenue in the link below.

http://www.revenue.ie/en/business/paye/guide/employers-guide-paye-intro.html#section5

From what op says I would think he is a contractor,
Op is responsible to ensure him and his employees are up to date with any taxes regardless of been a limited company or self employed.

From the link it is clear op would be self employed in this case

mickdw

Back to the original question, I'm sure a contract could be drawn up as required but would the garage business be willing to sign such a contract ?
Maybe they like to keep their options open re car cleaning. Maybe they will get a job bridge guy on site to do some of the easier cars.
I'd say if you can get a good price on a per car basis, if you run the business well, turning around cars quickly when needed and to a good standard, well you will get steady worm.

blackwhite

arthur daly wrote: »

From what op says I would think he is a contractor,
Op is responsible to ensure him and his employees are up to date with any taxes regardless of been a limited company or self employed.

From the link it is clear op would be self employed in this case

Now that he's back to the piece-rate, and seemingly free to take on other work then I'd agree.

However, if any new arrangement looked to replicate the old "flat-fee" arrangement, and meant that it was practically impossible for the OP to take on other work, then Revenue could quite easily take a different view.