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Switching from permanent to contract job with same sponsor

Only for the UK Skilled Worker visas, formerly known as Tier 2 visa route

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adi27
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Posts: 59
Joined: Fri Apr 14, 2017 6:09 pm
India

Switching from permanent to contract job with same sponsor

Post by adi27 » Fri Apr 14, 2017 6:17 pm

Hello,
I'm currently working for an employer who has sponsored my Tier2 Gen VISA. So far, I was under the impression that one cannot simply work as a contractor with Tier2 VISA and therefore opted to work as a permanent employee over contract position, but looks like one can legally do that, as long as he works for the employer who is also the sponsor. Is it true? If so would it is possible to make this change without going through much of a hassle. What would be the process like? Appreciate any advice.

Thanks
Adi

moonlight55
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Re: Switching from permanent to contract job with same spons

Post by moonlight55 » Fri Apr 14, 2017 7:02 pm

Not sure where you got that info from. You are not allowed to work as a contractor under Tier 2 (doesn't matter whom you contract with).

adi27
Junior Member
Posts: 59
Joined: Fri Apr 14, 2017 6:09 pm
India

Re: Switching from permanent to contract job with same spons

Post by adi27 » Fri Apr 14, 2017 7:47 pm

Here is one such thing, which made me think it is possible. Am I not intercepting it right?

http://www.contractoruk.com/successful_ ... grant.html
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The Sponsor can only assign a Certificate of Sponsorship (CoS) if they have full responsibility for deciding the duties, functions and outcomes or outputs of the job. Where you are carrying out work for a third party on your sponsor’s behalf, you must be contracted by your sponsor to provide a time-bound service or project on their behalf. This means a service or project which has a specific end date, after which it will have ended or the service provided will no longer be operated by the Sponsor or anyone else.

They must not be:

a) Agency workers, hired to a third party to fill a position with them, whether temporary or permanent, regardless of any contract between the sponsor and any employment agency or employment business.

b) Contracted to undertake an ongoing routine role or to provide an ongoing routine service for the third party, regardless of the length of any contract between the sponsor and another party. If the migrant is self employed there must be a contract for employment/services between the sponsor and the migrant. This contract must show:

the names and signatures of all involved (normally, the sponsor and the migrant);
the start and end dates of the contract;
details of the job, or piece of work the migrant has been contracted to do;
an indication of how much the migrant will be paid.

adi27
Junior Member
Posts: 59
Joined: Fri Apr 14, 2017 6:09 pm
India

Re: Switching from permanent to contract job with same spons

Post by adi27 » Fri Apr 14, 2017 7:55 pm

Please advise, I'm really confused about it.

moonlight55
Diamond Member
Posts: 1159
Joined: Wed Feb 23, 2011 1:42 pm

Re: Switching from permanent to contract job with same spons

Post by moonlight55 » Fri Apr 14, 2017 10:04 pm

Here, they are talking about a typical IT services company who assigns you to a time-bound project. Your entire ownership (including role, responsibility, salary) is paid by sponsor. Once your project is over, they will continue to pay you the relevant salary irrespective of whether they find another project for you or not.

What is your understanding of contracting?

adi27
Junior Member
Posts: 59
Joined: Fri Apr 14, 2017 6:09 pm
India

Re: Switching from permanent to contract job with same spons

Post by adi27 » Sat Apr 15, 2017 8:50 am

By contracting I mainly mean working on a daily rate for an agreed period of time, say one year. IMO, working on a daily rate is much more beneficial than a what I otherwise now earn as a permanent employee.So, my question is given the fact that I'm not breaking any law by working directly for my sponsor, would it be illegal to continue doing the same, but on a daily rate and only for a period of time ?

Wanderer
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Ireland

Re: Switching from permanent to contract job with same spons

Post by Wanderer » Sat Apr 15, 2017 9:00 am

adi27 wrote:By contracting I mainly mean working on a daily rate for an agreed period of time, say one year. IMO, working on a daily rate is much more beneficial than a what I otherwise now earn as a permanent employee.So, my question is given the fact that I'm not breaking any law by working directly for my sponsor, would it be illegal to continue doing the same, but on a daily rate and only for a period of time ?
Apart from contracting being illegal on a T2 anyway, performing the same role as previous would fall under IR35 rules meaning you'd be taxed as an employers and worse off, since you'd also be responsible for employers National Insurance, unable to claim any business expenses, no sick pay and no holiday pay.

Your T2 sponsor would than be either your limited company (unable to sponsor) or the the Umbrella company (unable to sponsor) so this plan is a definite no-no.

Google 'IR35' and 'Friday to Monday contracting' and aside from it being illegal in your case, you can also see what a bad idea it is anyway....

Employers like it since it shifts employment rights away from them, and also any legal/taxation aspects are shifted too, putting the entire onus on you to be legal, pay all taxes and abide by the immigration rules.
An chéad stad eile Stáisiún Uí Chonghaile....

adi27
Junior Member
Posts: 59
Joined: Fri Apr 14, 2017 6:09 pm
India

Re: Switching from permanent to contract job with same spons

Post by adi27 » Sat Apr 15, 2017 9:55 am

Many thanks for the response. I'll check these out. So it seems I've no option but to wait till I obtain ILR in order to start working as a contractor legally?

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CR001
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Re: Switching from permanent to contract job with same spons

Post by CR001 » Sat Apr 15, 2017 10:02 am

adi27 wrote:Many thanks for the response. I'll check these out. So it seems I've no option but to wait till I obtain ILR in order to start working as a contractor legally?
Correct yes.
Char (CR001 not Casa)
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