Mutuality of Obligation

Mutuality of Obligation is a key point in an IR35 contract. If a ‘Mutuality of Obligation’ exists you will certainly be Inside IR35. Therefore it’s very important that they agreement if for a fixed period after which time both parties go their own way.

If you are weighing up whether or not you are Inside IR35 or Outside IR35 and you would like to speak to a professional advisor contact Commonwealth Contractors now!

To discuss your situation call now on 0330 390 9021 or Submit your Details and we will get right back to you!

What is Mutuality of Obligation?

Mutuality of Obligation means that the employer and employee have a mutual obligation to one another.

For example, if an employer recruited a member of staff on a permanent basis they would have an ongoing responsibility to provide ‘work’ to the staff member each week.

The staff member would have a responsibility to accept the work being offered as they have agreed to become a permanent member of staff.

The terms of this agreement are defined in the employment contract between the employer and employee.

If you are a Contractor you will work for a specific period of time to deliver a certain service. At the end of the Contract you will not have a duty to accept further work. It is very important that this point is explained fully in the contract.

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To find out more about Commonwealth Contractors call now on 0330 390 9021 or Submit your Details and we will get right back to you!