I know there are a couple of HR people on here, just wondered if anyone knows anything about this...
We employ a couple of labourers as sub contractors, but because they have no tax history they are currently being hit with a 30% tax due to CIS, which they will get back eventually but is a big hit for lower paid people.
We want to take them on the books but only on temporary contracts - for both us and them (Nature of our business means we only need them and use them as labourers but they have some skills that could enable them to move on elsewhere if they can find the opportunity).
I spoke to ACAS and they said we can just put them on a fixed term contract with a one week notice period for both sides, which would entitle them to full employee benefits (holidays, SSP, etc) which we are happy to do - but how will that work with the following things:
If work dries up, can they be laid off and brought back in? Or would we need to terminate contract if we envisage it happening?
If we terminate a contract, can we re-employ the same person a few weeks later if they haven't found jobs and want to come back? Or would that be seen as wrong or not legal? I don't envisage that happening but if for any reason our long contracts go wrong we have always kept ourselves in a position where we can contract the company quickly so that we aren't stuck paying out by mainly using sub contractors.