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I think it's a great idea, there's far too many businesses that exploit employees by labelling them contractors. Of course, idea and execution are two very dif
by EdwardDiego 4y ago
I think it's a great idea, there's far too many businesses that exploit employees by labelling them contractors.
Of course, idea and execution are two very different things.
In NZ, it's often found in courier companies and telecommunications, where you're an owner-operator! Except you have to do what the company you work for says, when they say, and you have to provide all your own equipment, and of course, pay for your own sick leave, accident insurance and holiday pay. And no you can't work for a competitor, are you nuts?
At one point our tax department started cracking down on this, then stopped, I'm not sure why. But it needs to be done.
And let's not even discuss the infamous Hobbit law, where a right leaning government passed legislation under urgency to make all film industry employees contractors, with no rights to unionise, to keep Peter Jackson (he can get the Sir back when he redeems himself in my mind) and Warner Brothers happy after Jackson's Weta Studios lost an Employment Court case brought by a "contractor" who they very vigorously treated as an employee.
- Tade0 4y ago> At one point our tax department started cracking down on this, then stopped, I'm not sure why. But it needs to be done. Around here (Poland) they tried to focus the crackdown on... contractors, planning on requiring a contractor to have at least 25% of their income from a second client to be considered self-employed and not an employee. The local IT lobbyists had a hearty laugh about this idea and that was the end of it.
- dbetteridge 4y agoWe have a similar rule in Australia that unfortunately was introduced, so called 'personal services income' if you make over 80% of your money from a single source you effectively can't make tax deductions like a business.
- EdwardDiego 4y agoYeah, that's definitely the wrong place to focus - focus on the employers, as they're the ones who reap the benefits of treating employees as contractors.
- formerkrogemp 4y agoIt's Australia. They don't always have level-headed policy.
- 988747 4y agoAnd thank God that this idea was abandoned. I won't sign another employment contract in my life, even if you put a gun to my head.
- rhn_mk1 4y agoThat begs for elaboration. Why don't they fit you?
- 988747 4y agoI don't like to see my money being wasted on taxes. With Polish politicians there's zero chance that taxpayer money will be used reasonably.
- rhn_mk1 4y agoHow's that different than taxes you pay as a contractor?
- 988747 4y agoWell, as a contractor I pay one third of the taxes I would pay as an employee, so much less waste.
- Nullabillity 4y agoYou're still an employee, the only difference is whether you're "employed" by yourself or your.. actual employer.
- 988747 4y agoEven if that was true... why should I care?
- Nullabillity 4y ago
- madeofpalk 4y ago> I think it's a great idea, there's far too many businesses that exploit employees by labelling them contractors. In UK (and Aus), this whole IT/dev contracting business is kind of win:win (govt. loses) though - devs like it because they get paid $$$ day rates and pay less tax, businesses like it because... capex vs opex(?).
- mytailorisrich 4y agoThe thing is that in IT people actually want to be outside of IR35 because being a contractor is financially better for them. So you see contractor job ads prominently listing "outside of IR35" as a benefit. When this was implemented I know people who actually quit because they were told they would be within IR35 from then on, and they found new contracts outside of IR35. In IT/tech people go the contracting route for the money so unsurprisingly they follow the money...
- vidarh 4y agoIt's just a matter of rates. You need rates a bit higher within IR35. Less so than people think, and even less now that the corporation tax changes are still going through. The biggest problem with IR35 is no longer tax since the gap has become smaller and smaller, but the uncertainty of the classification and the hassle of dealing with an umbrella company.