How to change worker from Payee to Self employed

[jinie]

i am self employed and i employ one person to work for me on paye. I now cannot afford to keep paying him as work is slack. Can i tell him that he has to go self employed from now on or find a new job?? Do i have to give him notice or pay him anything to end the paye contract?? Its so confusing as to what is legal!!!

[factor-fiction]

How long has he worked there and what notice period has been agreed in the contract? You can just dismiss within 12 months provided you give the required paid notice. Or, regardless of length of service, you could make redundant.

[boxtops]

I think you have to give him notice, then he has to register as self-employed and then sub-contract with you. Does he want to do this? - it would mean that he's responsible then for his own tax and NI accounts.

[Frank97]

It would also mean the he's effectively taking a pay cut, no more holiday pay, can't see him being to pleased about that.

[jinie]

He has worked for me for a few years and there is no writin contract. How much paid notice is it likely he is due? I don't know if he wants to do this i want to find out the facts before i put it to him.

[jinie]

He has worked for me for a number of years and there is no written contract so no notice period has been agreed. How much is paid notice likely to be? I don't know if he wants to do this yet i want to make sure i have all the answers before i put it to him.

[evil__sheep]

http://www.theanswerb.../Question1036277.html
hiya if you read your answers from before, you'll see it's not quite that easy

[evil__sheep]

hewont be necessarily taking a paycut - self empl;oyed people are free to set their own rates, and might well include holiday pay in their rate

[jinie]

Thanks for the advice i will have to really look into this further

[evil__sheep]

i think the problem is that he will not really be self employed will he? You just want to either cut his hours or not pay his tax/ni to save yourself money but if you get fined because of it it wont save you any money. if you can't afford to keep him on, you'll either have to give him notice or make him reundant

[factor-fiction]

He will have acontract. If no notice is specified anywhere then the statutory minimum will apply.
Have a look on here for advice. There are lots of other sites too.
http://www.thisismone...small-businesses.html
You could just pay statutory redundancy pay so it shouldn't be a huge cost.

[buildersmate]

If work is slack, you can make him redundant. You will also have to give him notice as per the link F30 gave you.
He does have a contract - one defined by statutory minimum requirements given that appears to be nothing else written down between you.
As evil_sheep pointed out, if he only works for you self-employed, he won't actually be self-employed and you will lay yourself open to HMRC claiming the lost employer's NI off you if they deem that he is not actually self-employed. The way you have explained this, he would fit the category of self-employed.
Employing people unfortunately requires the employer to keep in touch with basic employment law and employee rights.

[buildersmate]

Sorry typo. He would NOT fit the self-employed requirements.