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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 50942
Experience:  Qualified Employment Solicitor
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We are a co-operative (ltd company) and currently employ

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we are a co-operative (ltd company) and currently employ staff who work for our members, billed by ourselves. We are considering making staff self employed when they will be billing the individual members directly. Would we need to make the staff redundant?

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

How long have the staff in question worked for you exactly?

Customer: replied 4 months ago.
thank you

No problem at all. Please do provide the information requested so that I can look into this for you. Thank you

Customer: replied 4 months ago.
there are three staff in question and they have worked for us for 16, 15 and 11 years

OK, thank you for your response. Leave it with me for now and I will review the relevant information and laws and get back to you at the earliest opportunity. There is no need to wait here as you will receive an email when I have responded. Also, please do not respond to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you.

Many thanks for your patience. If a worker is an employee and you are seeking to change them to being self employed, that would amount to a termination of their employment. There are only a few reasons under which you can dismiss someone and these are: conduct, capability, redundancy and some other substantial reason. Obviously, there are no conduct or capability issues and you may struggle to try and show there was some other substantial reason which avoids redundancy, so in all likelihood is that you will have to use redundancy to terminate their respective employments. Redundancy occurs when there is a reduced requirement to have employees doing a specific role, so if you no long require employees to do these roles and would instead want self employed workers, then that would most likely trigger a redundancy situation. The issue with that is you would need to give the employees their contractual notice periods and also pay them any redundancy due. As they have quite long service, this will not be a small amount, but it would be legally necessary if you wanted to do as proposed.

I trust this has answered your query. Please take a second to leave a positive rating by selecting 3, 4 or 5 stars above - this is an important part of our process and recognises the time I have spent assisting you. If you still need me to clarify anything else, please reply on here and I will assist as best as I can. Thank you

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Customer: replied 3 months ago.
Thank you for your response, this is exactly the information that we need, delivered promptly and answering our query directly.

you are welcome and all the best