Leaving contract midway

[konsultant]

A newbie posting and hope you can help.

I jumped into contracting last year after being a perm for years. After finishing my contract I was on bench and looking for the next role. I had two opportunities in line - a contract with someone whom I worked before (role 1) and a perm role (role 2).

As I had nothing on, went for both and got offers from both. The role 1 was offered first and I have started it this week. Role 2 has now offered and are now offering a contract instead of perm with a higher rate than role 1. I have been told no budget for perm hire - dont know what thats supposed to mean.

The difference in rate is not a big factor as opposed to potential renewals, kind of work etc. Role 1 seems to go on for longer but the work is extremely challenging/ stressful with long hours and tight deadlines. Role 2 is pretty easy and comfy and within my comfort zone but I do not know about opportunities for renewals.

Kind of confused and also if I go for role 2, what will be implications of serving my notice in just the first week. The role 2 is willing to wait till I serve notice. Since rate is not a big factor I was considering just telling role 1 that I am handing in notice as I have a better offer in terms of kind of work. The downside is the risk of bad reputation as I have worked in role 1 before.

Thanks in advance.

[TheFaQQer]

I jumped into contracting last year after being a perm for years. After finishing my contract I was on bench and looking for the next role. I had two opportunities in line - a contract with someone whom I worked before (role 1) and a perm role (role 2).

As I had nothing on, went for both and got offers from both. The role 1 was offered first and I have started it this week. Role 2 has now offered and are now offering a contract instead of perm with a higher rate than role 1. I have been told no budget for perm hire - dont know what thats supposed to mean.

It means that they won't pay for a permanent employee because they are expensive and they aren't allowed to increase headcount, so they will offer a temporary contract.

The difference in rate is not a big factor as opposed to potential renewals, kind of work etc. Role 1 seems to go on for longer but the work is extremely challenging/ stressful with long hours and tight deadlines. Role 2 is pretty easy and comfy and within my comfort zone but I do not know about opportunities for renewals.

Kind of confused and also if I go for role 2, what will be implications of serving my notice in just the first week. The role 2 is willing to wait till I serve notice. Since rate is not a big factor I was considering just telling role 1 that I am handing in notice as I have a better offer in terms of kind of work. The downside is the risk of bad reputation as I have worked in role 1 before.

Thanks in advance.

The implications are that you will leave the contract. You're right to recognise the risks involved of leaving the contract early.

[northernladuk]

A newbie posting and hope you can help.

I jumped into contracting last year after being a perm for years. After finishing my contract I was on bench and looking for the next role. I had two opportunities in line - a contract with someone whom I worked before (role 1) and a perm role (role 2).

My initial reaction after miss reading the whole thing was to go perm. Nothing in this makes me think you want to contract. You can't chop and change. If you have too many contract gigs on then employers will be suspicious you are back for training. If you are going to go perm fairly soon then do it sooner rather than later and just be happy in your job.... but now I've read it properly lets go through it.

As I had nothing on, went for both and got offers from both. The role 1 was offered first and I have started it this week. Role 2 has now offered and are now offering a contract instead of perm with a higher rate than role 1. I have been told no budget for perm hire - dont know what thats supposed to mean.

I means the head count wasn't approved so they are going to get you in as a temp. It means you will be doing what a permie does, being treated like a permie and will act like a permie. That's bad as you will be inside IR35 and be being paid like a permie but the gig will end quite soon. Not a very good option. I'd say that ones dead.

The difference in rate is not a big factor as opposed to potential renewals, kind of work etc. Role 1 seems to go on for longer but the work is extremely challenging/ stressful with long hours and tight deadlines. Role 2 is pretty easy and comfy and within my comfort zone but I do not know about opportunities for renewals.

Forget renewals. Expect to be at that client for as long as the notice period is (which incidently is zero but let's not get in to that). Never bank on a gig having renewals in general. You are there to do a piece of work and that's it. If the client is well known for contractors being there 10 years then maybe but that opens a whole new can of worms up. Could be a guide but I wouldn't be using renewals as a key decision point pre gig.

Kind of confused and also if I go for role 2, what will be implications of serving my notice in just the first week. The role 2 is willing to wait till I serve notice. Since rate is not a big factor I was considering just telling role 1 that I am handing in notice as I have a better offer in terms of kind of work. The downside is the risk of bad reputation as I have worked in role 1 before.

You'll look like an unprofessional waste of time, particularly so soon in to contracting... but... do you care? Client will be pissed off, agent will have a fit and threaten you with all sorts. If you give notice and do it properly he'll withhold your pay so will have to push to get it. If you breach you can whistle for your money and they will threaten to sue you.

You work for yourself now so reputation is everything. IMO mercenaries will find it comes back and bites them at some point. Do a good job, be professional and the work will just continue to flow... but many will say look after number one so that's up to you really.

When you say you've jumped in to contracting.. Are you making a half arsed attempt to just keep the money coming in or are you actually trying to be a contractor and understand what you do, all the legislation around it, run your business properly etc... I just get the feeling reading all that you are currently still a permie stumbling from gig to gig. You need to think about your warchest and end to end gigs etc It's what you do now and when there is no work there is no income.
I'm more or less guessing based on one post so if I'm wrong then forgive me and I'll shut up.

[BrilloPad]

You say nothing about difference in rate.

But assuming they are close I would definetly stay in role 1.

[konsultant]

Thanks both of you for your replies so far.

I means the head count wasn't approved so they are going to get you in as a temp. It means you will be doing what a permie does, being treated like a permie and will act like a permie. That's bad as you will be inside IR35 and be being paid like a permie but the gig will end quite soon. Not a very good option. I'd say that ones dead.

Well I plan to get the contract reviewed for IR35 and only sign when it is IR 35 friendly. Not sure what you mean permie salary? The day rate they are offering is higher than the role I just started.

Forget renewals. Expect to be at that client for as long as the notice period is (which incidently is zero but let's not get in to that). Never bank on a gig having renewals in general. You are there to do a piece of work and that's it. If the client is well known for contractors being there 10 years then maybe but that opens a whole new can of worms up. Could be a guide but I wouldn't be using renewals as a key decision point pre gig.

What would you look as key decision point? My personal situation currently necessitate me to have an uninterrupted income for 2016 atleast.

You'll look like an unprofessional waste of time, particularly so soon in to contracting... but... do you care? Client will be pissed off, agent will have a fit and threaten you with all sorts. If you give notice and do it properly he'll withhold your pay so will have to push to get it. If you breach you can whistle for your money and they will threaten to sue you.

You work for yourself now so reputation is everything. IMO mercenaries will find it comes back and bites them at some point. Do a good job, be professional and the work will just continue to flow... but many will say look after number one so that's up to you really.

When you say you've jumped in to contracting.. Are you making a half arsed attempt to just keep the money coming in or are you actually trying to be a contractor and understand what you do, all the legislation around it, run your business properly etc... I just get the feeling reading all that you are currently still a permie stumbling from gig to gig. You need to think about your warchest and end to end gigs etc It's what you do now and when there is no work there is no income.
I'm more or less guessing based on one post so if I'm wrong then forgive me and I'll shut up.

Agreed with it being unprofessional and all that. Now my previous contract was terminated early due to budget issues and I can call that as unprofessional. So kind of taking it with pinch of salt. The current one is with someone I worked before and hence I am looking at reputation risk. The potential for renewals is also a big thing for me currently mainly due to various personal circumstances.

While I agree the main motivation to get in contracting was money but as years go by I am learning the ropes.

The dilema is cautions I take when leaving contract in first week if I do decide on that? Best ways to manage loss of reputation and not burn bridges.
And understand if role 2 is a dead end after 6 months based on the perm freeze.

[konsultant]

You say nothing about difference in rate.

But assuming they are close I would definetly stay in role 1.

I didnt because the rate difference is not a decision factor for me and the difference may be a lot or less to many people.

[northernladuk]

Well I plan to get the contract reviewed for IR35 and only sign when it is IR 35 friendly. Not sure what you mean permie salary? The day rate they are offering is higher than the role I just started.

Fair enough but make sure you get the working practices checked not just the contract. I mean inside IR35 you are in PAYE. I don't know the comparisons.

What would you look as key decision point? My personal situation currently necessitate me to have an uninterrupted income for 2016 atleast.

Contracting may not be the best tool for that but fair enough

Agreed with it being unprofessional and all that. Now my previous contract was terminated early due to budget issues and I can call that as unprofessional.

Now we get in to argument territory as we differ in the board. You are a temporary flexible resource that works in a client supplier relationship IMO it is not a level playing field. You work for some of their money. If that money dries up you are gone. Its kinda party for the course of what we do.
I personally think quitting gigs in the first week for very little reason is poor form. The notice period is there and you can use it but being Uber mercenary in my opinion is a step too far. Someone will be along in about 20 seconds after post to say otherwise. Each to their own.

So kind of taking it with pinch of salt. The current one is with someone I worked before and hence I am looking at reputation risk. The potential for renewals is also a big thing for me currently mainly due to various personal circumstances.

There is your answer then and as we don't know these circumstances that are impacting your decisions I don't know how we are supposed to help.

While I agree the main motivation to get in contracting was money but as years go by I am learning the ropes.

Learn faster? Particular if you need to be in continuous gigs etc.

The dilema is cautions I take when leaving contract in first week if I do decide on that? Best ways to manage loss of reputation and not burn bridges.
And understand if role 2 is a dead end after 6 months based on the perm freeze.

Totally up to you, particularly with these circumstances which we are not privy to...

FWIW I thought Brillo's reply was perfect

[DallasDad]

Role 1 seems to go on for longer but the work is extremely challenging/ stressful with long hours and tight deadlines. Role 2 is pretty easy and comfy and within my comfort zone

Be honest to yourself is it that really you simply have cold feet re role one?
Contracting can be hard, it can be stressful but you are supposed to be an expert in your field so the work should not be too challenging because you should be leveraging your related experience.

Your hours should be the hours you contractually agreed to work and if your work throughput is sufficient why would you need to work 'long' hours or did you sign up to 10 hour days or similar?

Role 2 sounds like you will simply be a comfy embedded permetractor.
if you are working under an umbrella then being a permetractor will not cost you as your are already paying full tax but if working as a Ltd and trying to be (or pretending to be) outside IR35 then get the contract reviewed before you even entertain it.

[konsultant]

DallasDad - like the term permietractor.

To be honest that is what it seems like but will have a review of the contract and working practices. I am working through a ltd co.

For role 1 there is no contractual clause to work 10 hours, but this is first week and trying to get upto speed. At the same time the work is not exactly within my comfort zone and the delivered are badly estimated.

northernlad - Thanks

I dont want to get into an argument with "veteran" like you

"There is your answer then and as we don't know these circumstances that are impacting your decisions I don't know how we are supposed to help. "

Well, looking for cautions I should take when leaving contract in first week if I do decide on that? Best ways to manage loss of reputation and not burn bridges ?

The dillema was long term role stressful role doing something I am not comfy with vs leaving them in a week for something easy but not assured it is long term.

[Eirikur]

Leaving in the 1st week is not a big deal. Even if role 2 is within IR35 it sounds much more attractive then role 1. I would switch.