Permanent Employee to Contractor
Hi there,
We have a Permanent Employee based in Victoria who for financial reasons is going to become a consultancy contractor. We are reliant on the persons skills and don't want to lose them to a current work project. They are happy to stay working for us but want to convert to contractor rates/contract.
We are aiming to retain their services for a 12 month period for current IT contract... so it can be linked to a fit for purpose project.
I realise this will be potentially set a negative precedent to other staff as they too may like to switch to more lucrative rates, but in regard to the legal aspect, do others have experience of this.... is a too much of a risk in relation to "sham contracting" ?
Thank you
Glen
Permanent Employee to Contractor
Quote:
Originally Posted by
Moz
Glen,
My advice - don't do it.
Moz
I agree with Moz but one more point; you are obliged to sight proof of all the insurances a contractor must have, which includes workers comp, public liability etc.
Tiger