Duration a Contractor can be employed by one company

eiko

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23
Hi,

I am pretty sure there is an employment legislation which limits the length of time a company can employ a contractor to do a defined role. I can't, however, seem to find any information in this regard. If anybody could share a link or advise I'd appreciate it.

Thank you!
E
 

torblednam

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430
I think you need to clarify what you’re actually asking here.

Are you talking about a company hiring someone as an employee but on a succession of short term contracts without making them permanent?

Or contracting someone in as a self-employed contractor to provide a service to the company?

Or something else...?
 

eiko

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This one:

"Or contracting someone in as a self-employed contractor to provide a service to the company?"

Let's just say that a company is employing self-employed contractors, paid on an hourly basis, to work in tandem with and do the same job as permanent employees. The company uses this method to reduce costs (PRSI etc.). In the case when the contractor is employed on an indefinite basis, is there a legal limit (for contractor or employer) to how long that 'indefinite' period can be? I hope that makes sense. Thanks
 

odyssey06

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1,612
A lot of places seem to cap the max length of a contracted employment to 2 years. I think there was a tribunal ruling to the effect that after that point they would basically have the same protections as a directly employed \ permanent staff member, but I'm half remembering that - can't find a source.
 

torblednam

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430
This one:

"Or contracting someone in as a self-employed contractor to provide a service to the company?"

Let's just say that a company is employing self-employed contractors, paid on an hourly basis, to work in tandem with and do the same job as permanent employees. The company uses this method to reduce costs (PRSI etc.). In the case when the contractor is employed on an indefinite basis, is there a legal limit (for contractor or employer) to how long that 'indefinite' period can be? I hope that makes sense. Thanks
Are these people contracting through some form of intermediary / agency though, or are they contracting directly with the customer as self employed VAT registered sole traders?
 

Purple

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9,075
Revenue usually decide these matters.
If the deem that the main purpose of the arrangement is to reduce tax liability them they will decide that the person is an employee.
Is it a contract of service or a contract for service; can the contractor work for other businesses or are they solely employed by the company.
See here for case law.
 

zephyro

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134
Let's just say that a company is employing self-employed contractors, paid on an hourly basis, to work in tandem with and do the same job as permanent employees. The company uses this method to reduce costs (PRSI etc.). In the case when the contractor is employed on an indefinite basis, is there a legal limit (for contractor or employer) to how long that 'indefinite' period can be? I hope that makes sense. Thanks
There's no time limit on a legitimate self-employed contract, however if Revenue or SW ever looked at the situation you describe here, they would undoubtedly find using their criteria that these "self-employed contractors" are actually permanent employees.
 
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