Pro Rata Contracts Question

[Boney M]

An easy question no doubt but how do you work our pro rata payments?

If a role is say advertised for 6 months at 50k pro rata, is that effectively £25k for the 6 months then, assume it is, do you then invoice for say £4166.66 per month?

[malvolio]

An easy question no doubt but how do you work our pro rata payments?

If a role is say advertised for 6 months at 50k pro rata, is that effectively £25k for the 6 months then, assume it is, do you then invoice for say £4166.66 per month?

No. You will be paid for six months as a permie on £50k a year through their PAYE payroll. Invoicing doesn't come into it. Real contracts are per hour or per day.

[Boney M]

No. You will be paid for six months as a permie on £50k a year through their PAYE payroll. Invoicing doesn't come into it. Real contracts are per hour or per day.

many thanks malvolio

[northernladuk]

Be careful when dealing with gigs that quote pro rata. It could be a one of these god awful perm but not perm contracts that give you zero benefits of an employee and can be binned at any time as a contractor can.
Look very carefully at the details of these 'contracts'.

[jmo21]

Be careful when dealing with gigs that quote pro rata. It could be a one of these god awful perm but not perm contracts that give you zero benefits of an employee and can be binned at any time as a contractor can.
Look very carefully at the details of these 'contracts'.

Echo this, most likely a Fixed Term Contract, which actually should be called "Short Term, Permie equivalent pro-rata salary based contract".

I'm not sure however they can bin you at any time? Still wouldn't touch, but I guess they have their place.

Current client co (22months) have been trying to hire a permie but best they could offer was a 12 month fixed term contract on really low salary to basically replace me.

Instead of just offering a decent salary, even if fixed term, they would have needed me on my {pretty decent for my area} day rate.

[kevpuk]

I did one FTC many moons ago, whilst still considering myself permie....
Really is the worst of both worlds, IMHO, as the salary is not really any better than regular permie, available benefits may well be limited and there is less 'security' - unless there is good reason, I would avoid

[VectraMan]

I did one FTC many moons ago, whilst still considering myself permie....
Really is the worst of both worlds, IMHO, as the salary is not really any better than regular permie, available benefits may well be limited and there is less 'security' - unless there is good reason, I would avoid

I've been a permie (a proper permie) for 2 months now, but my contract states I'm on 1 week's notice for the first 6 months (and then 1 month). I've had contracts with longer notice periods, so I'm not sure "security" is really a factor. At least with a FTC you can plan for it, and if they like you and want you to stay you negotiate proper terms.

A proper contract would be charged according to project milestones. Being paid per hour or per day is what temps do.

[malvolio]

I've been a permie (a proper permie) for 2 months now, but my contract states I'm on 1 week's notice for the first 6 months (and then 1 month). I've had contracts with longer notice periods, so I'm not sure "security" is really a factor. At least with a FTC you can plan for it, and if they like you and want you to stay you negotiate proper terms.

The difference with an FTC is you sign away your rights to unfair or early dismissal, redundancy, redeployment and pension funding. So no, not like a full contract of employment.

A proper contract would be charged according to project milestones. Being paid per hour or per day is what temps do.

Rubbish.

[VectraMan]

The difference with an FTC is you sign away your rights to unfair or early dismissal, redundancy, redeployment and pension funding. So no, not like a full contract of employment.

Being in a trial period I don't have have any of those. Perhaps unfair dismissal could apply, but then an FTC employee isn't devoid of all protection either.

[Boney M]

Be careful when dealing with gigs that quote pro rata. It could be a one of these god awful perm but not perm contracts that give you zero benefits of an employee and can be binned at any time as a contractor can.
Look very carefully at the details of these 'contracts'.

Thanks guys, dont normally bother looking at these type of roles but one did appeal and I didnt know how it worked out