swanny
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| posted on 14/2/11 at 09:24 PM |
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retirement/agency work advice
hello guys,
i'm after a bit of advice for my dad.
he's coming up to retirement age this june and with this new legislation coming in later in the year his employers are no longer just extending
his time in the way that they would have done in the past.
he had a meeting with HR and his boss today and basically they have said that they wont be able to keep him as an employee but would like to have him
as a worker via an agency.
they have said he needs to write a letter saying that he wants to retire, then register with an agency (they will help with this)
then once a few weeks have gone by they will then employ him again through the agency.
they have said that he will get holiday pay, but that there might be some weeks when they arent busy where they dont need him.
i cant get my head round why they would incur the agency fees of 25% more money, rather than just give him a one year contract? (maybe the above?)
is there anything i shoulf make sure he asks about? anyone on here been in a similar position?
i should say that he really likes still going to work, mums in a care home, and he really needs the routine so i dont want him to suffer over this.
he cant really get his head round the idea of retiring really.
though he is currently pulling my car apart to resolve its various bodywork problems, so maybe that will keep him busy in retirement
cheers
paul
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austin man
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| posted on 14/2/11 at 09:31 PM |
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I would ask them to give what they have said in writing seems a little strange way to go about things maybe even look at a bit of legal advice
Life is like a bowl of fruit, funny how all the weird looking ones are left alone
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blakep82
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| posted on 14/2/11 at 09:32 PM |
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i thought there was a new thing out this month (? maybe it was just an idea thats not happened yet?) that if he didn't want to retire now, he
could carry on, otherwise its age discrimination? ok, they're not saying he has to retire and thats it, but i didn't think he had to leave
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StevieB
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| posted on 14/2/11 at 09:33 PM |
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The payroll burden of an employee is around 40% on top of the cost of their salary, so this probably represents a saving for them. Plus, they will no
longer make any pension contributions etc. which is also a big driver for this kind of arrangement at the moment.
What he needs to be careful of of handling the tax position and not falling foul of the dreaded IR35 rule - tell him to speak to a good acocuntant if
he hasn't already is order to make sure everything is properly dealt with, lest he be landed with a whopping tax bill at the end of the year.
I know plenty of people who work on this basis (including myself) without problems and I actually prefer it (though it can be stressful having a young
family and feeling like you;re living day to day at times!).
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Hammy360
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| posted on 14/2/11 at 09:45 PM |
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It does sound strange to as I work in this environment everyday. Im assuming he wont want to start his own limited company to be paid through via the
agency. Therefore he can work via the agency as PAYE employee or be paid via an umbrella PAYE payroll company that will afford him holiday pay and tax
relief on expenses (including travel to work.
I am slightly suspicious though that they want him to put in writing that he is choosing to retire.
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swanny
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| posted on 14/2/11 at 09:55 PM |
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quote:
Originally posted by Hammy360
I am slightly suspicious though that they want him to put in writing that he is choosing to retire.
why do you think they might want this?
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Mr Whippy
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| posted on 14/2/11 at 09:58 PM |
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Sounds like age discrimination tbh, there was stuff on the radio about new rules that made all this illegal
We all know fine well that he will not be rehired through an agency and all this agreement is just word of mouth and means nothing legally. He will
just have retired voluntarily waving all his employee rights in the process and is then easy pickings for staff cuts or them refusing to hire him
back. To think otherwise is being very naive.
Personally I’d get it all on emails and then report them, look up the web on discrimination and your rights
[Edited on 14/2/11 by Mr Whippy]
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adithorp
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| posted on 14/2/11 at 10:50 PM |
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Getting him to inform them of his intention to retire does look like a way for them to get around
this
"A witty saying proves nothing" Voltaire
http://jpsc.org.uk/forum/
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watsonpj
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| posted on 14/2/11 at 10:51 PM |
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The current law says that at 65 you have the right to request to stay on but the employer has the right to refuse you. The new legislation will change
this so you have the right to continue working and the employer can't stop you. Your dads employer is hedging there bets as if they allow him to
stay past june (well october) then they will have no rights to let him go. I think they are perfectly within their rights to do this and there
isn't a lot he can do about it. The new rules in October will change this but it sounds like one of those sh**ty things that happen in life when
the new rule is just to late for you.
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Ninehigh
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| posted on 15/2/11 at 08:27 AM |
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Sounds to me like they're trying to eff him about too, why is he sending them a letter saying he wants to retire when they both know he
doesn't?
Also who says he's going to get in the same place with that agency?
However if it's all legit then it might be better for him as he'll not be there full time all the time.
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swanny
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| posted on 15/2/11 at 08:46 AM |
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quote:
Originally posted by adithorp
Getting him to inform them of his intention to retire does look like a way for them to get around
this
following that flowchart suggests that he has little choice.
work have been good to him so far, so hopefully will be ok over this. to an extent they need him, as he built some of the systems they now provide
support for, and there's no one else left.
will make sure he questions the reason for the letter though (that does sound a dodgy thing for a large company to do) and to ensure that there are no
IR35 issues.
as ever massive thanks to locost builders. what would i do without you?
(work probably  )
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Ninehigh
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| posted on 15/2/11 at 09:03 AM |
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I'd still make 100% certain in writing that they intend, no WILL take him on through this agency otherwise he might well find himself without a
job. "But you told us you wanted to retire, you wrote us this letter!"
Sorry but I don't trust anyone by default
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swanny
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| posted on 15/2/11 at 09:14 AM |
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i know, since my last post thats been bothering me.
if they arent doing something wrong now.... or intend to do something bad to him in the future why are they looking for this.
have suggested he tells the HR people that after 45 years of working honestly, he is uncomfortable at having to lie in a formal letter in the last few
years of his working life, and see if they reply.
i imagine they will ring him, i dont imagine they will put any of it in writing.
more wary now than i was before. its that letter and why they want it that bugs me
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Ninehigh
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| posted on 15/2/11 at 09:19 AM |
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Hang on a minute that default retirement age doesn't mean they have to get rid of him, it just means they can get rid of him. Why aren't
they able to just keep him on like other companies? I've worked with people in their seventies and eighties and there was no question of them
retiring.
By the sound of it if he says no I want to stay on then they'll just make him retire, but they want to keep him on, but not with them... No
something smells and it's not my son's nappy
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swanny
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| posted on 15/2/11 at 09:39 AM |
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i think its because they are afraid that post october or whenever the new egislation comes in they wont be able to get rid if they wanted to.
i think they are afraid of being constrined by the new law. I'm sure theres a money element too.
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Macbeast
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| posted on 16/2/11 at 10:31 PM |
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He could do what I did - retire with all the benefits then work for them as a freelance. No need for Agency. I did three years like that.
I'm addicted to brake fluid, but I can stop anytime.
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