Contractors reminded of their legal protection

Contractors reminded of their legal protection
IT contractors have been reminded that they may not have employment rights, but they are covered by contract law.

According to Contractor Calculator, IT contractors do not qualify for employment rights as they offer their services on a business-to-business basis.

However, contract law protects the IT contractor from having his contract changed halfway through, if the client decides they want to refocus a project or move the contractor to a different one.

Also, changing contracts at the client's insistence is a clear sign of control from the client - which is used by HM Revenue & Customs that the worker needs to be brought under the dreaded IR35 tax code.

"In the interests of not burning bridges with a client who may provide future assignments, an option might be for the contractor to compromise and suggest a reduced notice period," the website suggests.

IR35 tax legislation is currently under review by the Office for Tax Simplification, although contractors have been warned that a simpler code might not necessarily mean they are paying less tax.
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