The great fixed-term contract debate

[masonryan]

OK folks, let's have a proper debate about fixed-term contracts.

First of all, I've never done one. I must explore why, as I have considered them at least initially.

I just see it as permie pay for contractor work for 12 to 24 months. "Oh it's better than nothing" shout all the permie-minded people when you're out of contract. Then they don't get it, think I'm mental or suicidal when I turn them down. "At least you don't have to look for something else for 12-24 months" & "It's best to get 12-24 months of solid work experience down than maybe nothing" they scream in their incredulity "it will LOOK better on your CV" they plead.

Reasons I've rejected them:-
1. Opportunity cost.
2. Unable to put expenses against earnings to reduce tax
3. PAYE tax rates

But what about the permie benefits I could enjoy from a fixed-term contract? I still don't know what those things are, do you? Holidays and sick days I hear them say. Employment rights say others. Huh? Still don't get how that warrants accepting an effective daily rate of half of a normal contract. It does not compute!

I've had a couple of conversations this afternoon with some permie friends/family who still don't get why I think negatively like I do on these fixed-term contracts. I just don't buy them. Do you?

The only thing I want to look good is my NET WORTH. And my hair.

[northernladuk]

https://www.gov.uk/fixed-term-contra...dterm-contract

Any employee on fixed-term contracts for 4 or more years will automatically become a permanent employee, unless the employer can show there is a good business reason not to do so.

They are not contracts as we see them so shouldn't really be considered on here. Closer to a perm contract than what we know. It's just the term 'contract' in the title that gets us looking but we shouldn't. It's a temporary perm contract and nothing more.

I know BUPA use them have two friends, one was taken on after the 4 years, the other one binned. 4 years at a company not knowing if you have a solid job and then get binned at the point they have to tell you your perm. Just a disgrace!

[masonryan]

https://www.gov.uk/fixed-term-contra...dterm-contract



They are not contracts as we see them so shouldn't really be considered on here. Closer to a perm contract than what we know. It's just the term 'contract' in the title that gets us looking but we shouldn't. It's a temporary perm contract and nothing more.

I know BUPA use them have two friends, one was taken on after the 4 years, the other one binned. 4 years at a company not knowing if you have a solid job and then get binned at the point they have to tell you your perm. Just a disgrace!

Can't believe I'm gonna say this but.... I totally agree! I find them a con.

[northernladuk]

Some further evidence that they are nothing to do with the contracts we know....

9 things you may not know about fixed-term contracts - www.vitae.ac.uk/researchers

2. The termination of a fixed-term contract is recognised in law as a redundancy.

Didn't know that... but further proves it isn't for us to be considering. Might still be attractive for all the disguised permies out there though

[Bellona]

No, I don't.

I see them as more of an option for someone looking for a full time role for a defined length of time only,They are long term temporary positions, not contracts per se

For me there are no advantages.

I took to contracting to take as much holiday as I wanted, when I wanted, and to go in, deliver what is stated and go away again.

I took private health cover from the Healthcare Provider I used to come under as a permie ( so existing conditions covered, and got a good rate, it's worth the cost). I have a private pension.

I earn 3 times more than I did as a permie (take home ), even allowing for bench time.

So no benefits at all to a FTC for me.

[masonryan]

That's interesting northernladuk.

So, sometimes I get calls about fixed-term contracts paying £40k say for 12 months.

£30k after tax. Accommodation/travel up to £1.5k/month or £18k. This leaves £12k/year or £1k/month to pay yourself.

Not great is it?

Might be feasible if the fixed-term contract is local.

A 6-month proper contract paying a modest £300/day would be £30k turnover, minus 9k Accommodation/travel, leaving £21k profit, £4k tax so £17k post tax to pay yourself.

Then you sit on your bum for 6 months and are still £5k richer than the fixed-term guy.

[socialworker]

In myline of work (seeusername) I am amazed that some clients have agency workers in for years on end when fixed term contracts would be cheaper. It all depends on the market, while there are agency roles I will take them but if client councils wake up and smell the coffee one day I will have to take whatever I can get. One place has tried offering bank roles offering pathetic rates, half way up the permanent scale, needless to say noone has bitten afaik.

[masonryan]

Interesting, socialworker.

Do you think that having a fixed-term contract on your CV devalues your contracting credibility? I mean, client co and agent may then conclude you can be pushed around more and tempted on lower rates.

[socialworker]

Interesting, socialworker.

Do you think that having a fixed-term contract on your CV devalues your contracting credibility? I mean, client co and agent may then conclude you can be pushed around more and tempted on lower rates.

TBH no one would give a stuff, but then it is a very different world to IT. Ive got basically two agents now that get the same jobs, each knows I will go to the other if they try to mess me about, and I am straight with them both.

[alluvial]

Interesting, socialworker.

Do you think that having a fixed-term contract on your CV devalues your contracting credibility? I mean, client co and agent may then conclude you can be pushed around more and tempted on lower rates.

Only if you're dull enough to differentiate between them on your CV.