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I'm looking at a few contract positions at the moment and, having always been a permie, I'll admit that the thought of a job where they can get shot of me with 24 hours notice makes me just a tinsy bit nervous.
However, there are obviously lots, and I've worked with lots, of contractors who've been contractors for years and would never go back to a permie job.
So, what are the good and bad points of contracting? If I take the leap, any tips?
they can get shot of me with 24 hours notice
Depends on your contract, no?
I've have contracts that went from a week's notice either side to a month after 3 months.
EDIT:
If I take the leap, any tips?
Make yourself very valuable to clients, really know your specialty & at least make it sound like you're aware of technologies etc. that touch on your speciality.
True. That was based on the contracts used at the last place I worked as a permie
I know a number of them (contractors that is) they all seem to have been pretty regularly employed for the last few years and are all happy doing it. It does require you to travel around for a work a bit though as far as I can tell. Personally I'm just a permie and I've not ventured into the evils of contracting thus far.
Note that there is new legislation surrounding contractors that you might want to look into. Comes out around December I think.
Essentially, it means that after the first three months, workplaces have to treat contractors like permies. Paid holidays, sick leave, access to creches, gyms and the like.
Initially it sounds awesome. Earn a fortune and get all the benefits of being a permie but I think it will hit the contracting market hard. 3% extra cost is the figure I've seen bandied about.
Actually, I've just checked. It's already in place, from the 1st.
Sssh! Don't tell my contractors they'll phone in sick tomorrow!
[url] http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2002:0149:FIN:EN:PDF [/url]
If you are good at your job and willing to work away from home if necessary to keep in a contract then go for it. I have been contracting for 6 months now and have not regreted it. My old company could dump me in 4 weeks with only 4 weeks pay. After 11 years that's not good. It was risky staying as a permie.
Now I have funds in the bank to sustain 6 months of lay off if it came to that. I know when my contract is up for renewal and if will b renewed. I even have 4 weeks notice either way written into the contract. Unlike my permanent job I know what is going on
If you do go for it you have to get yourself a good accountant. Do not 'blow' the cash. Pay yourself a 'living' wage. Set up your benefits package, pension, insurance, healthcare. Pay your tax and then realise the profit at the end of the year. If you have any mortgage type stuff to deal with do it now before you bin your permanent job.
I forgot to say. Go Limited. Set up your own company. Its better tha using an umberella company.
Samuria. That legislation looks like it for temporary agency work not 'true' contracting. It not the same thing to me.
and play "nice" with HMRC with the approach you use to extract ££££ from your company (assuming you have limited company). Don't do what some eejuts did a few years ago and sign up to companies using esoteric payment vehicles involving getting paid via foreign currency deals. Said eejuts are now involved in protracted legal disputes with HMRC.
This was mentioned at work yesterday, but as I pointed out I'm not a temporary worker as I'm fully employed by my limited company. On PAYE, take a wage and pay tax/NI (well some years...).
My limited company then invoices the client.
Like all legislation, it needs reading.
be aware of IR35...