IT Contractor - Are they employees?

Pique

If an IT contractor who is working via an umbrella company has their contract terminated after 5 years due to lack of need, are they entitled to redundancy payment?

The company is still operating successfully btw. All hours were dictated, annual leave specified, non-compete clause signed. They were referred to as 'employees' in all official company-wide emails. (3rd party contractors would be specifically referred to seperately, like if Tata or whoever were contracted and supplied people for the projects).

This suggests that they are employees. Can anyone give a more succinct explanation? https://mcmahonsolicitors.ie/employee-v-contractor/

Grolschevik

Revenue has quite specific criteria. But it can be open to argument.

I'm a self-employed contractor for a single client for over 20 years, using their equipment, at their premises, on their schedule (at least until Covid and remote work), and I can't subcontract.

My accountant says I should be considered an employee. My client doesn't. Since they got a more clued-in HR person, they have removed certain 'employee related' things, such as my listing on the staff website and some minor staff perks.

It's a case you'll have to make to whatever dispute resolution authority is relevant.

ahnowbrowncow

I've zero sympathy for people who agree to become contractors and avail of all its benefits, while flaunting all the contract of vs for guidelines but when they lose their 'contract' they go running to see if they can claim redundancy.

Grolschevik

What benefits? Apart from the possibility of working til I die, I'd switch in a heartbeat. Though my experience is probably not relevant in many cases.

https://www.boards.ie/discussion/comment/120063064#Comment_120063064

Cash. You get paid ~ 50% more than the equivalent employee. If you're not, then you should be...

Director's PRSI, Expenses, Executive Pension etc...

Lenar3556

If you are taking in decent money, there can be significant tax advantages to being self employed. In the case of more moderate incomes the benefits are less so.

I would envisage revenue will, in time, clamp down on the ‘IT Contractor’ sector - many seem to be a clear case of employees.

AndrewJRenko

https://www.boards.ie/discussion/comment/120063064#Comment_120063064

Was there no heartbeat opportunities to find a permanent, employee post during the recent boom years for the IT industry?