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What Are The Risks Of Being A Contractor??

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    What Are The Risks Of Being A Contractor??

    Given that permies can get chopped with a months notice, can someone explain clearly what exactly the risks of being a contractor are?

    I am talking specifically about job security here - Why is it that contractors are deemed to be less secure?

    #2
    Originally posted by joey122 View Post
    Given that permies can get chopped with a months notice, can someone explain clearly what exactly the risks of being a contractor are?

    I am talking specifically about job security here - Why is it that contractors are deemed to be less secure?

    The term 'permenant job' is a misnomer - it should be abolished.

    A 'perm' job is not permenant - it is a contract with an unspecified duration subject to a notice period from the employer - where is the permenance in that arrangement ?

    Wherwas 'contractors' - have a contract of a specfied duration and subject to a notice period.

    * I have had contracts which are 'rolling' and dont have a specified completion date

    Due to the way some companies allcoate their budgets for headcounts I have seen 'perm; staff being laid off while I continued working - because I was under a different budget.
    Last edited by AlfredJPruffock; 23 July 2009, 13:24.

    Comment


      #3
      Contracts have a defined end date, little or no notice, you go to prison if you don't pay tax.

      HTH
      Science isn't about why, it's about why not. You ask: why is so much of our science dangerous? I say: why not marry safe science if you love it so much. In fact, why not invent a special safety door that won't hit you in the butt on the way out, because you are fired. - Cave Johnson

      Comment


        #4
        We might not get the chop, we will get the chop (at least if we are not disguised employee's)

        And unlike the permies, no redundancy/golden parachutes/comeback for unfair dismissal so forth, just there's the door, don't let it hit you on the way out. On top of that if something happens like sickness/pregnancy we are out of pocket. Same with holiday leave, pensions and other misc.

        Also, though unlikely, client can sue us (or appropriately our Ltd's) if we cock up

        Comment


          #5
          You have employment laws and tribunerals protecting you as a permie. You might even have a Union to support you.

          You have tax laws and tax inspections hounding you as a contractor.

          Comment


            #6
            If you are LTD not sure you can claim dole.
            No redundancy concept.
            Sickness.

            Comment


              #7
              I'd say the big risks are, in order,

              * long illness
              * warchest too small (or lifestyle too expensive)
              * taxman (IR35, S660, BN66 etc.)
              * agency going bust
              * being a niche or product-based contractor which falls out of fashion
              * being too low down and have your skills turn into a commodity (ie desktop support)

              Permies can suffer many of the above, with the exception of the taxman, but the consequences are usually less pronounced or more time and warning will be afforded.
              Cats are evil.

              Comment


                #8
                Originally posted by AlfredJPruffock View Post
                A 'perm' job is not permenant - it is a contract with an unspecified duration subject to a notice period from the employer - where is the permenance in that arrangement ?

                Plus you have to suffer the tosh that is "development plans" and "appraisals"
                -all just an excuse not to give you a bonus.

                Comment


                  #9
                  Occasionally you mistakenly venture into a strange on-line world, populated by an odd assortment of squirrel botherers, Irish dominatrixes and chutney spoon lickers.

                  It's a terrible fate.
                  Hang on - there is actually a place called Cheddar?? - cailin maith

                  Any forum is a collection of assorted weirdos, cranks and pervs - Board Game Geek

                  That will be a simply fab time to catch up for a beer. - Tay

                  Have you ever seen somebody lick the chutney spoon in an Indian Restaurant and put it back ? - Cyberghoul

                  Comment


                    #10
                    Originally posted by moorfield View Post
                    Plus you have to suffer the tosh that is "development plans" and "appraisals"
                    -all just an excuse not to give you a bonus.
                    I remember my last permanent job (many moons ago) and my 'personal
                    development manager' duing my appraisal starting going off on one
                    about his personal development and how he was in the wrong role etc Makes
                    me laugh when I look back, it was one of the things that helped me decide to
                    go contracting...............now what was the defence company called EDS.......or something......!?!??!

                    Comment

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