A:

Ideally you will pay him as a part-time member of staff working 100% of his time on the project. If the salary cost remains comparable to his salary per hour when he was employed full time there will be no problem. Of course he will need to keep reports of his time spent on the project (ideally on a daily basis and approved by the project manager within your organisation.

Note the definitions for the Financial Guidelines page 144:

Personnel may include:

·          "Permanent employees", who have permanent working contracts with the contractor.

·          "Temporary employees", who have temporary working contracts with the contractor.

·          In certain circumstances, costs of personnel made available by a third party on the basis of a prior agreement may be considered as eligible costs to the project. However, the reimbursement of such costs depends on compliance with the provisions relating to the use of third party resources. In any event the time devoted by such a person can be taken into consideration in determining the resources used on the project.

The third category does not directly apply to you because the employee was previously employed and his status is changing. On the other hand on page 146 of the financial guidelines the following is stated about in-house consultants:

There are three possible ways of classifying the costs of in-house consultants (in any event costs will ONLY be eligible if they fulfil the conditions of the contract (Article II.19):

They can be considered as personnel costs; regardless of whether the intra-muros consultants are self-employed or employed by a third party, if the following cumulative criteria are fulfilled:

·          The contractor has a contract to engage a physical person to work for it and some of that work involves tasks to be carried out under the EC project,

·          The physical person must work under the instructions of the contractor (i.e. the work is decided, designed and supervised by the contractor),

·          The physical person must work in the premises of the contractor,

·          The result of the work belongs to the contractor (Article II.32.3 of Annex II (General

·          conditions) to the FP6 model contract,

·          The costs of employing the consultant are not significantly different from the personnel costs of employees of the same category working under labour law contract for the contractor.

·          Travel and subsistence costs related to such consultants' participation in project meetings or other travel relating to the project would have to be paid directly by the contractor in order to be eligible. Moreover only the actual costs of the consultant should be charged to the project.