"New" contract states I am now a contractor and no longer employed by company

[LeeRiver]

So someone within the company I was employed with bought the company in Dec.2021, and she has sent me a new contract. During our brief conversation she said she would have to reduce my salary by 5k due to covid and the company losing money- though not happy I understood and didn't have a problem. However, when I received the new contract, it stated my new reduced amount but it also stated that I was now a contractor and no longer an employee and the company is not responsible for vacation pay, holiday pay, sick pay etc. Is this legal? Do I have any rights?

[Sam101]

YES you do. You cannot be treated like this, Call the Citizens Advice line for help. You should also get more help soon on this Forum. This may also help https://www.gov.uk/employment-status/worker

[ULA]

If you are doing exactly the same job (albeit of a reduced salary) as you were prior to the new contract then I am struggling to see how you can now be classed as a contractor. Are all the other terms and conditions of employment the same.

In this supposed new status of contrator does the following apply in your relationship with the company:

Mutuality of obligation: Contractors are not required to accept or to be offered work.

Control: Contractors will likely have considerable freedom over the hours they work per week or per month and set their own schedule.

Substitution: A contractor would, in theory, be able to hire someone in their own right, or get someone else, ie. an employee of theirs, to do the work.

If you cannot say yes to the above then my view is that you still an employee and it would seem that she is trying to remove herself from the contractual obligations of being an employer i.e including pension contributions, holiday pay etc.

Yes you do have rights particularly if you can prove that you are still an employee.