contract to permanent contract to permanent
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  1. #1

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    Default contract to permanent

    I applied for a contract role and today the recruiter got in touch with me to give me more information about the role.

    She asked if I intend to stay a contractor in the long term and if I would be open to permanent work. Apparently, the client wants to bring in a contractor on a 3 months contract (inside ir35) and then just "automatically" convert the contract into a permanent position.

    This is why she's weeding out candidates who aren't open to permanent opportunities in the future. This is also why the recruitment process she described is way longer than what's usual for contracts.

    According to her, the client is doing it because apparently hiring contractors and then converting them to permanent work is easier than hiring permanent staff straightaway. She said the client has been doing it for some time now and actually I've found quite a few people on linkedIn supporting this theory (3-4 month contract then straight to permanent).

    First time I've heard anything like it, so is it normal practice or is there anything I should be worried about?

  2. #2

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    Quote Originally Posted by PCTNN View Post
    I applied for a contract role and today the recruiter got in touch with me to give me more information about the role.

    She asked if I intend to stay a contractor in the long term and if I would be open to permanent work. Apparently, the client wants to bring in a contractor on a 3 months contract (inside ir35) and then just "automatically" convert the contract into a permanent position.

    This is why she's weeding out candidates who aren't open to permanent opportunities in the future. This is also why the recruitment process she described is way longer than what's usual for contracts.

    According to her, the client is doing it because apparently hiring contractors and then converting them to permanent work is easier than hiring permanent staff straightaway. She said the client has been doing it for some time now and actually I've found quite a few people on linkedIn supporting this theory (3-4 month contract then straight to permanent).

    First time I've heard anything like it, so is it normal practice or is there anything I should be worried about?
    It's an inside contract so moving to perm is fine.

  3. #3

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    This has been going on as long as contracting has. We've many discussions on here about contractor to perm gigs. Just a flexible way to pick and chose the candidates really. They can hang the poor sod out for as long as they want to check they are OK before offering the perm role. Kind of like and endless probation period without having to give any benefits or legal pitfalls. Bit of a disgrace as it's open to abuse but it not uncommon.

    Normally when this pops up on here we have a bun fight about this situation because it's outside to perm and all the risks to your IR35 status but that's a non discussion here as you are inside already.
    Here's a search but as I say not really relavant as most of the discussion is about IR35.
    contract to perm site:contractoruk.com/forums - Google Search

    Nothing wrong with it although you've got to think forward about what the perm package will be and don't be thinking it's a dead cert you've got a job. They can still bin you whenever they want right up to the point you sign the perm contract.
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  4. #4

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    It'd be interesting to hear what rates they are offering for effectively the same role the the Inside IR35 gig and then the permanent position (presumable with additional benefits).

    An unscrupulous employers could set the daily rate net at pretty much the same as what the permanent role would pay net, and then just get rid of the contractor after 3 months. Rinse and repeat. A way to get contractors on the cheap.

  5. #5

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    Quote Originally Posted by Paralytic View Post
    It'd be interesting to hear what rates they are offering for effectively the same role the the Inside IR35 gig and then the permanent position (presumable with additional benefits).

    An unscrupulous employers could set the daily rate net at pretty much the same as what the permanent role would pay net, and then just get rid of the contractor after 3 months. Rinse and repeat. A way to get contractors on the cheap.
    No idea about the permanent position but the daily rate advertised for this inside ir35 contract is £650

  6. #6

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    Quote Originally Posted by northernladuk View Post
    This has been going on as long as contracting has. We've many discussions on here about contractor to perm gigs. Just a flexible way to pick and chose the candidates really. They can hang the poor sod out for as long as they want to check they are OK before offering the perm role. Kind of like and endless probation period without having to give any benefits or legal pitfalls. Bit of a disgrace as it's open to abuse but it not uncommon.

    Normally when this pops up on here we have a bun fight about this situation because it's outside to perm and all the risks to your IR35 status but that's a non discussion here as you are inside already.
    Here's a search but as I say not really relavant as most of the discussion is about IR35.
    contract to perm site:contractoruk.com/forums - Google Search

    Nothing wrong with it although you've got to think forward about what the perm package will be and don't be thinking it's a dead cert you've got a job. They can still bin you whenever they want right up to the point you sign the perm contract.
    Thanks, so I was right to think that it's nothing dodgy, it's basically just another way of prolonging the probation period. Fair enough.

    Thanks for the link as well

  7. #7

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    Quote Originally Posted by PCTNN View Post
    No idea about the permanent position but the daily rate advertised for this inside ir35 contract is £650
    I can tell you right now it won't be anywhere near that. Is it public or private sector? If it's public it will be derisory, if it's private you 'might' get a bumped up rate if you are super good and they want to keep you but more likely to be either market rates or whatever that particular client pays (some are renowned for paying under market rate etc).

    As I say, proper disgrace. You'll get to the end, they'll offer you 50k a year and you'll be pissed off about the whole shambles. If you aren't bothered and happy to leave then just treat it like another gig and get on with it.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  8. #8

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    Yes, definitely. I'm not even thinking about the permanent gig potentially happening afterwards.

    I haven't even decided if I'm going to apply for it. But if I do, I'll just treat it as a standard 3 month gig and I'll cross the permie bridge when/if I get to it.

    It's private sector, by the way.

  9. #9

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    Quote Originally Posted by PCTNN View Post
    Yes, definitely. I'm not even thinking about the permanent gig potentially happening afterwards.

    I haven't even decided if I'm going to apply for it. But if I do, I'll just treat it as a standard 3 month gig and I'll cross the permie bridge when/if I get to it.

    It's private sector, by the way.
    If the rate offered is OK then sounds spot on to me. Paid interview in hard times.

  10. #10

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    Quote Originally Posted by northernladuk View Post
    I can tell you right now it won't be anywhere near that. Is it public or private sector? If it's public it will be derisory, if it's private you 'might' get a bumped up rate if you are super good and they want to keep you but more likely to be either market rates or whatever that particular client pays (some are renowned for paying under market rate etc).

    As I say, proper disgrace. You'll get to the end, they'll offer you 50k a year and you'll be pissed off about the whole shambles. If you aren't bothered and happy to leave then just treat it like another gig and get on with it.
    I don’t understand your answer. This guy has a 650 a day role for three months inside. He should take it.

    Not easy for employer to just fire and rehire. There are associated training costs involved

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