Company firing me and hiring me as a consultant

[goldmanatee]

This isn't actually for me but for my girlfriend. She was hired by a pretty big company to do some marketing work. After about 2 years HR told her that they are going to fire her (terminate her services they say) but they are willing to hire her back as a consultant. She's going to make close to the same amount of money if she works this way. Why would the company do this instead of just asking her to take like a 10% pay cut? I don't like it. I think there is more to this than just a pay cut.

 

[army judge]

This isn't actually for me but for my girlfriend. She was hired by a pretty big company to do some marketing work. After about 2 years HR told her that they are going to fire her (terminate her services they say) but they are willing to hire her back as a consultant. She's going to make close to the same amount of money if she works this way. Why would the company do this instead of just asking her to take like a 10% pay cut? I don't like it. I think there is more to this than just a pay cut.

Its cheaper.

As a consultant, they'll not have to pay for certain benefits (vacation, health care, sick days, etc..).

This is a just another nail in America's coffin.

It isn't illegal.

She's free to accept their offer, or say no thanks.

Either way, they are free to let her go, just as she'd be free to quit if she inherited $20,000,000 from her cousin, Lord Anthony Sweeney.

 

[cbg]

It's not inherently illegal, no.

But the definitions of employee and independent contractor are statutory. Calling her a consultant does not make a difference - you're either one or the other; there's no other option. It is not impossible to hire someone as an employee and then later call the same person doing the same job an IC, but it's difficult to do it in such a way that meets the right definitions. It's easy to be an employee - unless you are actively hiring yourself out to other companies at the same time it's hard to legally be an IC. Tell her to consult an employment attorney.

 

[army judge]

It's not inherently illegal, no.

But the definitions of employee and independent contractor are statutory. Calling her a consultant does not make a difference - you're either one or the other; there's no other option. It is not impossible to hire someone as an employee and then later call the same person doing the same job an IC, but it's difficult to do it in such a way that meets the right definitions. It's easy to be an employee - unless you are actively hiring yourself out to other companies at the same time it's hard to legally be an IC. Tell her to consult an employment attorney.

He said they were terminating her, but offering to bring her back as a consultant.

I suspect she'll have a choice to make.

She could get termed, and get unemployment for six months.

Or, take a risk as a consultant, and stay employed.

I suspect she'll make more consulting in six months, than she could ever make in six months on UI.

 

[cbg]

probably true. However, that doesn't change the fact that LEGALLY she probably doesn't meet the definition of an IC. If it works for her, though, I'm fine with it.

 

[Unregistered]

Good morning BrendanI am wnkoirg as a Supporting Actor with one payslip away from joining Equity. I am starting at the bottom but as soon as I get the card' I will be looking for small parts to start with. I know with SA its what is asked for but what annoys me is that after joining the Agency, how when I go on an assignment, people have not joined or signed a contract and paid to have photo's done and yet they get constant work and I have done this thinking I would not get work. Not only is it unfair, but puts me in a position where I feel if I complain, I will be putting myself in a bad position which is why I have not. I have read your book which is great and I noticed that I have already do the some of things you talk about naturally. Thank you for that xx I am not yet an Actor and have only gained the B-Tec National with 16 Distinctions, 8 Merits and one pass. I have not been in a position to take up the work until now some time after my B-tec. I joined a local theatre and was totally ingnored as they are a click' even after reading for every play, wnkoirg as a lighting tech, painting sceans etc. I gave it my best and currently looking for another theatre to join. (Brush myself off and start again)! I live outside of London but was about to join an Agency there as well as where I live, but at this time, its the cost. The reason for this is how to get work on other projects like Downtown Abby etc. I know I have probably answered my own questions but it is good to talk. With kindest regardsThe old fossil

 

[Unregistered]

Kudos! What a neat way of thkining about it.