Client offering Contractors Perm positions

[makscorp]

Guys im in a dillemma.
I have been contracting for this client for 7 months now and my contract has just been extended until March. At the point of renewal the client has stated that this is the last time its being extended, and come march i have to go permanent or leave.

I was wondering what is the best way forward. if the client employs me as perm, they still have to pay the agency a release fee. I for the obvious tax/expenses reasons dont want to go perm, but would not mind dropping my rate so that they can keep me on as a contractor. There is a big gap between what they offer for perm and me earning as a contractor.

Can going direct for me be an option? Do you think the client will accept? If i go perm, they have to pay me sickpay/holidaypay/paternity leave bla bla bla.

I would rather be happy in not being entitled to any of this, and continue working as a permanent contractor.

[Sockpuppet]

If you do this then you may be caught by IR35. Plus if you can get other work at your rate today why not take it.

If you go direct they will still have to pay the agency a fee.

At the end of the day its your choice. It may not be the money that makes them want to change you to a permie. If you are dropping your rate that low you may be better off with being a permie.

[malvolio]

It would be worth finding out why. If it's to do with budget issues then fine, but it's more likely some HR muppet thinks you will become a deemed employee just by being there, in which case they need some re-education.

The real answer, of course, is to smile sympathetically, tell them you are a professional freelance and walk away.

[bobhope]

If you do decide to go perm, make sure you it's for a more senior position, etc. If you just do the exact same role, at some point you'll start getting bitter that you're doing the same work for much less money.

[Theinformer]

from having various friends that are contractors (yes i know i am still a scummy agent), they have said that its not worth it going direct mainly because of the tax and IR35 etc and as for perm, dont take the pay cut. you get paid what you do because you're worth it.

[Sockpuppet]

from having various friends that are contractors (yes i know i am still a scummy agent), they have said that its not worth it going direct mainly because of the tax and IR35 etc and as for perm, dont take the pay cut. you get paid what you do because you're worth it.

How would going direct affect IR35. All the difference is that there isnt a pimp taking a few hundred a day on top of your wage. The contract and working conditions are the same, infact no agency could be seen as a good think for IR35.

[lukemg]

Good shout bobhope, would be amazed if they are offering anything other than the current role though. One thing you could do is get agreement for a course of training (something relevant to the role that you have had your eye on perhaps ?) and only take the job based on this.
Another option is to leave it late and politely turn down the permanent job, offer to help with any handover and be flexible when you finish etc. There is a good chance the recruitment process will take a couple of months + a month handover etc and you could be there for quite a while. On the other hand they may see it as an insult (especially if you previously said yes or made positive noises) and erase your ass the same day.
HTH

[makscorp]

Good comments so far guys keep it up thanks. They are getting rid of contractors purely because of budget reasons and unstability which contractors bring to the team. as us contractors could walk out at any time?

I feel im gonna have to put my case forward and produce some kind of calculation figures to show how much difference there is between me as a contractor and perm, and whether we can bridge the gap?

Any ideas what percentage agency release fees are?

[Mordac]

Good comments so far guys keep it up thanks. They are getting rid of contractors purely because of budget reasons and unstability which contractors bring to the team. as us contractors could walk out at any time?

I feel im gonna have to put my case forward and produce some kind of calculation figures to show how much difference there is between me as a contractor and perm, and whether we can bridge the gap?

Any ideas what percentage agency release fees are?

Your client (like so many others) is extremely shortsighted. Perhaps they've forgotten why they took on contractors in the first place. If you're happy going perm, fine, but I wouldn't. Personal choice. Perhaps you've forgotten why you became a contractor in the first place?
Agency perm fees will be anything from 12.5 to 20% ish. They might do a discount if you've been there a while as a contractor, but it depends on the relationship between the client and agency.

[turbo]

Turn permie?!

Run for the hills!!!

turbo