Contracting within your full time job

[tthach2]

I'm currently working in a full time position in the IT field. I have a small consulting business on the side which I run in my spare time. New positions are opening up around my project. I know many qualified individuals for the open positions. Can a person who is working full time for a company place people into open contract positions through their personal consulting business. Is this legal? What's the best way to approach management on the topic? Would you have to leave your full time postion and be hired back as a contractor to do this?

Thank You

[martinibuster]

Seems a bit tangled up because you will be placing the burden of paying these people onto yourself. Are you looking to skim a little cream off the top for yourself?

I contract myself out. I'm not anyone's employee. Ever.

On the few occasions I needed help I hired other contractors and left the payments to the firm, not me. Less headaches for me.

[tthach2]

Hello martini,

I'd have no problem paying the contractors. That is my intention. They would be working for me at the customer site which is my current employer. I look at it this way, my company is going to go out and search for consultants(through placement firms) to fill the open positions anyway so why not hire them through me. I'd be the middleman instead of the placement firms. My concern is if their are any legal conflicts in doing this?

[webwoman]

If you're looking for legal advice, you're definitely not in the right place for that...ask an attorney to be sure.

That said, I have a friend who does what you want to do (also in IT) and he seems to have no trouble with it. His company knows he is doing it and it's all very out in the open. Have you asked your employer if they have any problem with it?

[ateam]

Also take a look at your countries IPR (Intellectual Property rights), sometimes the firm you work for owns all the code you write (even off worktime).

[tthach2]

Hello webwoman,

No I haven't discussed it with them yet. Aside from the legal aspect, it's good to hear your friend does it without a problem. I wanted to know if others had done this sort of thing before discussing with my employer. I have no problem discussing it with them. Just want to make sure it's even a possibility.

Anyone else?

Thanks

[JayC]

I wouldn't think there'd be any legal problem in general but the one area to be careful with is that you aren't being paid as a consultant (that is, without tax withholding) for tasks that would be part of your regular job.

If your "small consulting business on the side" is actually incorporated, you should have no worries at all. If it's been just you working as a sole proprietor, the more you could establish that it's an ongoing business with other clients the easier it would be for you to legitimatize this in the unlikely event that you get scrutinized. You want to be sure that it wouldn't appear to the IRS as if your intent is to avoid tax witholding, or anything similarly dodgy, by redirecting some of what should be wages into other forms of payments.

[tthach2]

Just spoke with management. They will see if there are any internal folks who are qualified for the open positions, after that they would not have a problem hiring someone from me.

Thanks for the input everyone!

[rogerd]

tthach2, it's good you got the OK. The best thing you can do, IMO, is be very open and honest. You are putting yourself in a position with potential conflicts of interest, but if you stay honest and avoid anything that looks sneaky, perhaps it will work.