View Full Version : Fixed term pro rata contract

1st December 2011, 16:25
Hi, first timer here.

The client I am talking to (though an agent) has come back saying they are thinking about offering me a six month fixed term contract pro rata salary £60k (equates to £250 a day). I'd get sick pay/holidays as well. I'd be treated as an employee therefore taxed etc.

I've been told by the agent that the client would potentially move me into permanent employ at the end of the six months and taking the fixed term contract is the easiest way to do this. Obviously this ultimately means not doing contracting. The salary is about twice what I was on before redundancy so no bad thing there.

I don't understand why they don't just offer me a contract at day rate though. I'd be getting to take advantage of tax efficiency, albeit at the cost of no holidays/sick etc, but am not too bothered about that.

Is there generally a reason why a company would offer a fixed term contract like this instead of a day rate?

My prime concern is that after say six months in the fixed term contract I won't have built up enough of a financial cushion if the contract ends. If it was day rate around £350 then after 6 months the cushion would be much better and allow more flexibility.

Anyone got any advice on this?

Thanks in advance

1st December 2011, 18:19
This may be a dumb question but have you told the agent you'd prefer to go with a contract?

They may be doing it this way because they think you'll be less likely to jump ship before the contract ends?

1st December 2011, 18:46
Thanks for the response Zippy.

I have questioned the agent as to why they are offering this as FTC and not a daily rate, but have not explicitly said I would prefer a contract to the agent, was assuming he'd have figured that out. It will be my next step tomorrow though.

Re jumping ship, yes it could be that, trying to keep me in because of the 'fringe benefits' associated with SPP/Holidays instead of hard cash in the wallet. I'd much prefer working solid for six months and taking the cash frankly.

I'm speaking to them again tomorrow so will see what happens.

Thanks for your time

1st December 2011, 19:12
No problem - hope you get it sorted.

And I'm with you on the "cash in the wallet" thing. There's no guarantee the permie job will work out but at least with a contract you can claim expenses and reduce your tax bill.

11th December 2011, 18:41
They want a permie, and the 6 months is a trial run


they want some short term work done and they don't think they could get a contractor at a day rate of that size so are aiming at desperate unemployed permie market