redundancy planned with intention of becoming subcontractor in same role

Hi,

My work wants to terminate my contract and then I subcontract to them for the same role when they relocate to another country in the eurozone. I had a one year contract which has not been renewed for the last 2 years but essentially has rolled over.

Can they do this? I have been told verbally but not in writing and there has been no official timeline out in place yet.

They are saying (I take this with a pinch of salt) that I will be able to pitch a much higher rate and that I will be able to claim for the home office and travel. I have heard that the revenue are scrapping this kind of subcontracting this year.

Obviously I will lose all AL and sick entitlements.

I've never been self employed and feel at a total loss where to start with the negotiations...

Really, any advice would be welcomed.

Basically to work out the daily rate you would charge you divide the old annual salary by 230 days (which allows for 21 days AL and 9 days Pub Holidays)...and that'll give you your new rate per day incorporating your compensation for annual leave and bank holidays.

You would also have to base the calculation on your last 12 months gross pay inclusive of benefits etc to make sure you are not losing out.

As a self employed contractor you lose your PAYE tax credit (€1800) but you can claim expenses against your income such as home office (light & heat etc), stationery, training, books, car costs, computer, broadband, etc

HTH

This is a much bigger issue than just working out the rates. You lose all employment rights (as you will be no longer an employee). I have a feeling that what they are planning is just a little bit dodgy, as they are getting the state to subsidise your redundancy.