Job board observations contract roles in perm clothes rant

[ApeShape]

In my little niche of accounting software there's been an apparent surge of perm roles where one would normally expect contract roles (new projects) the JD's are literally screaming contractor.

Back in the summer, the talk of the table was all these companies are taking advantage of the market and slashing day rates. Now correct me if I'm wrong but I'm seeing something potentially even more nasty. Companies have moved on to pushing out what would normally be a contract type of role but in the guise of a 'permanent position' Yeah I know in normal times this happens but eventually the tumble weeds straighten them out.

With this perm BS, it doesn't take an idiot to figure out they'll have you lead on for 6 months or whatever and then they'll ditch you post project. My god what a huge win for them if they can strangle the market of contractors and make perm the new contractor.

Probably no way to defend against this unless the contractors all go on 'strike'. Cringe, I don't know.

[cwah]

It's not as easy to fire perm people. There are also more right and taxes to pay.

They can try to get rid of people before the end of probation as alternative but that won't work indefinitely

[ApeShape]

It's not as easy to fire perm people. There are also more right and taxes to pay.

They can try to get rid of people before the end of probation as alternative but that won't work indefinitely

As I understand it, you can be fired for absolutely any reason in the first two years. Another beautiful contribution to labour laws by the Tories / Dave Scameroon.

My contractor friend is being pushed out of a contract role and he knows that they're in the process of replacing him with a 6 month 'perm' head. Then again, it's all remote now so they've likely figured since the contractor did so well remotely why not offshore on £15 per week to do the same.

[NotAllThere]

As I understand it, you can be fired for absolutely any reason in the first two years. Another beautiful contribution to labour laws by the Tories / Dave Scameroon.

You understand UK employment law incorrectly if you think you can be fired for any reason for the first two years. You can't. It has to be a good reason, and procedures must be followed.

What you will find is companies going FTC. They're far less problematic.

My contractor friend is being pushed out of a contract role and he knows that they're in the process of replacing him with a 6 month 'perm' head. Then again, it's all remote now so they've likely figured since the contractor did so well remotely why not get an offshore resource on £15 per week to do the same.

It's finding such a person offshore that can do the job that's the challenge.

There is a chance they'll be more encouraged to try outsourcing of course. But most companies soon learn that it is only cost effective in certain specific scenarios.

[SussexSeagull]

I would have thought the would either recruit someone inside IR35 or FTC if they didn't want contractors anymore.

[Fraidycat]

With this perm BS, it doesn't take an idiot to figure out they'll have you lead on for 6 months or whatever and then they'll ditch you post project.

No that will destroy morale amongst the existing perms. Perms are all about job security. Will scare the crap out of them.
Plus there is a hefty up front agent fee to hiring perms.
Plus the on boarding process, it takes most people 3 to 6 months just to get up to speed on a project.

Like others have said, FTC is the way to try it on.

1 year FTC perm is the same cost as a 6 month contract.

[sira]

You understand UK employment law incorrectly if you think you can be fired for any reason for the first two years. You can't. It has to be a good reason, and procedures must be followed.

The OP is correct. The UK has very weak labour laws and it is very easy to fire people - seen it with my own eyes. Yes companies need to following their internal "procedures" but they can fire you easily.

Saw it happen many times when I used to work in Investment Banking. If they want to get rid of people, they say your performance is below the required standard (no evidence needed, only the managers word). They put you on a 1 month performance programme and no matter how good you perform the manager simply says again "sorry not good enough". And viola your, sacked.

Infact, it happened to a close friend of mine. He took a perm IB role for a large scale transition project, it was a a mix of project and BAU and was supposed to be pure BAU once the project was completed (18-24 month project). He completed his most critical part of the project in 5 months and a few weeks before the end of his probation they canned him citing "budget" reasons. Since then, he has flat out refused any perm job which involves a significant amount of project work and only goes for roles which largely have a BAU component.

In the current environment this type of funny business will be happening alot, and will carry on until the gravy train gets going again.

[sira]

No that will destroy morale amongst the existing perms. Perms are all about job security. Will scare the crap out of them.
Plus there is a hefty up front agent fee to hiring perms.
Plus the on boarding process, it takes most people 3 to 6 months just to get up to speed on a project.

Like others have said, FTC is the way to try it on.

1 year FTC perm is the same cost as a 6 month contract.

To my knowledge agencies dont receive their full fee until the permie passess probation. I have heard of some agency contracts where the agency will refund the firm, if the employee doesnt stay for at least 1 year.

[Abbot]

To my knowledge agencies dont receive their full fee until the permie passess probation. I have heard of some agency contracts where the agency will refund the firm, if the employee doesnt stay for at least 1 year.

In a past life as a permie recruiting manager that certainly was not the case for me. They might have given a rebate or a free replacement but they certainly did not refund when a new hire walked out, regardless of whether they were in or post probation. Someone walked out on his first day and the full fee was still due.

[SueEllen]

As I understand it, you can be fired for absolutely any reason in the first two years. Another beautiful contribution to labour laws by the Tories / Dave Scameroon.

My contractor friend is being pushed out of a contract role and he knows that they're in the process of replacing him with a 6 month 'perm' head. Then again, it's all remote now so they've likely figured since the contractor did so well remotely why not get Raj from Rajasthan on £15 per week to do the same.

Not anything covered by the equality laws.

Plus health conditions can change into a disability at anytime....