Fix Term Contract - they keep postponing the start date

[CheeseSlice]

Off-payroll rules affecting FTC workers? Unbelievable. Sounds like someone at clientco or consultancy didn't get the memo.

[GhostofTarbera]

Hi all,

I got FTC job with a consultancy company to start on the 18th of January. (contract signed)

Since the middle of January they keep postponing the start date due to some "IR35" documentation the customer needs (a big bank which does not accept contractors anymore, only FTC)

I am quite disappointed with the situation. I switched from contractor to FTC (temporarily) accepting all disadvantages on taxes and salary, but I should not being penalised because on their delays...

Which options I have?

Thanks!

Have you completed the screening process with “big bank” yet? As will take 4 weeks also (yes even though you are via consultancy)


Sent from my iPhone using Contractor UK Forum

[PCTNN]

FTC's are the worst option of all. No security at all and none of the pay to make up for the lack of security.

Why do you say that?

All the FTCs I've come across in my career were paying:
- salary in line with the ones of permanent staff
- bonus
- pension
- all other permie benefits (paid holiday, maternity leave, sick pay and what not)

If you're comparing FTC with an outside ir35 contract, then ok I give you that, financially they don't compare. But with today's rates and with more and more contracts being inside ir35, the difference is minimal.

I worked for a company that used FTC as an easier way of bringing in permanent staff: when budgets were tight and the company needed another permie, it was easier to bring them in with a FTC to start with and then make them permie.

[GigiBronz]

Why do you say that?

All the FTCs I've come across in my career were paying:
- salary in line with the ones of permanent staff
- bonus
- pension
- all other permie benefits (paid holiday, maternity leave, sick pay and what not)

If you're comparing FTC with an outside ir35 contract, then ok I give you that, financially they don't compare. But with today's rates and with more and more contracts being inside ir35, the difference is minimal.

I worked for a company that used FTC as an easier way of bringing in permanent staff: when budgets were tight and the company needed another permie, it was easier to bring them in with a FTC to start with and then make them permie.

Yeah sure, but unless you are cheap, you pay someone a fair rate for a temporary relationship. It doesn't have to work only in the interest of the company.

People have mortgages, rental agreements, they can't just move their life after what companies want and not get compensated for it.

A forum of contractors advocating for company's... bloody fools.

[simes]

Why do you say that?

All the FTCs I've come across in my career were paying:
- salary in line with the ones of permanent staff
- bonus
- pension
- all other permie benefits (paid holiday, maternity leave, sick pay and what not)

If you're comparing FTC with an outside ir35 contract, then ok I give you that, financially they don't compare. But with today's rates and with more and more contracts being inside ir35, the difference is minimal.

I worked for a company that used FTC as an easier way of bringing in permanent staff: when budgets were tight and the company needed another permie, it was easier to bring them in with a FTC to start with and then make them permie.

Well, security in this case may mean something like redundancy pay if you've been there for two or more years. I am guessing with rolling FTC contracts, even if after three years of this, there's still no pay out.

Also, would a company offer to train if only around for six months? Some might but, if training in your line of work is an ongoing requirement, then this might be another form of security. Being up to snuff after your stint there.

[PCTNN]

Yeah sure, but unless you are cheap, you pay someone a fair rate for a temporary relationship. It doesn't have to work only in the interest of the company.

People have mortgages, rental agreements, they can't just move their life after what companies want and not get compensated for it.

A forum of contractors advocating for company's... bloody fools.

I'm not advocating for companies. I'm just saying that FTCs are not the worst options as suggested by the other poster, especially in the current climate.

If you take into consideration the lowering rates and the increasing taxes (inside contracts), and then consider overall package (salary and benefits) of the FTC, the 2 options are not that far off and the difference is slimming down more and more.

The time of 12+ months outside contracts at stellar rates is a distant memory. We're entering a new time of low rates, high tax contracts. The best contractors will adapt and survive; the mediocre will come here to moan

[northernladuk]

Why do you say that?

All the FTCs I've come across in my career were paying:
- salary in line with the ones of permanent staff
- bonus
- pension
- all other permie benefits (paid holiday, maternity leave, sick pay and what not)

If you're comparing FTC with an outside ir35 contract, then ok I give you that, financially they don't compare. But with today's rates and with more and more contracts being inside ir35, the difference is minimal.

I worked for a company that used FTC as an easier way of bringing in permanent staff: when budgets were tight and the company needed another permie, it was easier to bring them in with a FTC to start with and then make them permie.

I've known quite a few people on FTC's and they, on the whole, weren't given permie roles at the end. Permies are not built for this level of risk. They want a job, that's it. To be brought in on a temp contract that has a set end date that the client is under no obligation to carry on is very worrying for them. They talk about the same benefits as perms and it might have changed over the years but I know BUPA weren't offering the same health insurance they did to permies. As I say that might have changed but I'd be surprised if many FTC's are truely getting exactly the same benefits. So FTC is a really poor option for perms.

For us it's a short term gig with risk but that risk is not factored in to the rate so absolutely useless for us.

So FTC is an awful option for everyone but the client/employer.

I'm just saying that FTCs are not the worst options as suggested by the other poster, especially in the current climate.

But they are only one step ahead of being out of work so right at the very bottom next to working at Greggs. The absolute minimum possible next to nothing.

[northernladuk]

Well, security in this case may mean something like redundancy pay if you've been there for two or more years. I am guessing with rolling FTC contracts, even if after three years of this, there's still no pay out.

Bearing in mind a FTC can only run for four years max even having access to redundancy for that period of time is hardly security.

[PCTNN]

But they are only one step ahead of being out of work so right at the very bottom next to working at Greggs. The absolute minimum possible next to nothing.

so are contractors, only FTCs pay you 1 month of notice, day rate contracts potentially 0

[northernladuk]

so are contractors, only FTCs pay you 1 month of notice, day rate contracts potentially 0

1 month of **** all is still **** all. If your next job is paid a month in arrears then that isn't an consolation at all.
Day rate contractors make enough to build a warchest so the risk is covered in the rate as I said.

You aren't getting this at all are you?