FTC any pitfuls to be aware of

[northernladuk]

I probably would think long and hard about FTC and then going permanent.

Are they getting your services for free ? Missing training budgets, bonus, life assurance fees and matching pension contribs*: what is the employer getting out of it other than a contract of employment termination data?

What is the different between FTC and the Perm employee?

Are you going to be treated as second-class citizen politically? Will you have power in the meetings?


*PCTNN has corrected me here in the next post.

I suppose an FTC operating through an employment agent is more vulnerable. So OP, what FTC is this? Direct with Client Co or Indirect with Client Co.

If FTC is an indirect through an EA to the ClientCo then I would have valid concerns, because usually an EA has anti-competitive clauses in the contracts. You cannot contract directly with the Client Co for 6 months after the contract, usually. But this is different as it is an employment thing so I don't know for sure.

I'd just delete that whole post if were you. Utter crap. FTC is an employment contract. All the rubbish you put before PCTNN corrected you was wrong and everything after it is wrong as well.

[northernladuk]

I was aware of the financial benefits you mention but was thinking more about career growth, promotion etc. I've started seeing some 3 year FTC roles which seems pointless.

You can be in an FTC for four years before they are legally obliged to take you perm.

I think I said two years earlier. That's when you can claim unfair dismissal and the like.

[PCTNN]

I was aware of the financial benefits you mention but was thinking more about career growth, promotion etc. I've started seeing some 3 year FTC roles which seems pointless.

Yes, you're right there about career growth: you won't have any during your FTC. So if the FTC role is 3 year...forget about promotions and career growth for the whole 3 years.

More wiggle room if your FTC is shorter, say 12 months, at the end of which you might be in an alright position for discussing about a new position with new salary.

A lot you can understand about the company and what future you might have after just a couple of months. The way I see it is FTCs are better than being on the bench and can potentially be an easier way into a permanent role if that's what you're after.

[MonkeysUncle]

Thanks all for the replies.
To break it down.

FTC for 9 months, then option to go perm.
They had someone in who was contract, then went perm and then decided he wanted to go back to contract.

FTC is direct with end client.

I am happy to take the FTC for 9 months, if its a good for me and the company, then yes happy to go perm (provided salary etc all works out). The difference between the FTC rate and the perm rate is about £12k (if I worked it out right). This could be negotiable and tbh even if it wasnt, its something I could make work if I really wanted to.

If not, I can go back to contracting. I will make my ltd dormant for the period.

Fully aware that an FTC wont give me career progression/growth etc. What it does do it get me out of the public sector (something I have been looking to do for a while) and open the door to a new industry.

[rocktronAMP]

Yes, you're right there about career growth: you won't have any during your FTC. So if the FTC role is 3 year...forget about promotions and career growth for the whole 3 years.

More wiggle room if your FTC is shorter, say 12 months, at the end of which you might be in an alright position for discussing about a new position with new salary.

A lot you can understand about the company and what future you might have after just a couple of months. The way I see it is FTCs are better than being on the bench and can potentially be an easier way into a permanent role if that's what you're after.

Thanks PCTNN and therefore there are subtle differences: pros and cons.

For transparency, I am leaving a 12 month FTC next month. In my circumstance, my FTC was with an employment agency (they used to be recruitment agency pre-COVID), who took on the contractors like me (LTD until December 2019) and we became PAYE with holiday. This was because the blanket IR35 decisions and lack of Outside IR35 contract in early 2020. So I was working as a FTC temporary resources to the financial concern, we are not employees with Client Co (financial banking industry for context).

So the reality is Contract of Service between me, the worker, to the EA and between the EA and Client Co is Contract for Services.

So you are right. FTC running 4 years consecutively more, I would have been perm but with the EA and not ever Client Co. If the OP has an FTC directly with Client Co, then happy days for them, if not .... well

All I was saying, my FTC experience, I felt I was in a much weaker position, been there and done that. I was once upon time fairly assertive in meetings and bold "You are doing it wrong. This is not the way be Agile (substitute TDD or Design Architecture). You're developing this code wrong, mate", but I learnt to shout my cakehole, because one morning several years ago, I witnessed another opinionated contractor walked out of the door, because he/she had too many fights in that regard. If you are working a temporary resource then remember your mileage may vary in comparison to an employee of client-co, it's the consultants standard answer, "it depends".

[rocktronAMP]

Thanks all for the replies.
To break it down.

FTC for 9 months, then option to go perm.
They had someone in who was contract, then went perm and then decided he wanted to go back to contract.

FTC is direct with end client.

I am happy to take the FTC for 9 months, if its a good for me and the company, then yes happy to go perm (provided salary etc all works out). The difference between the FTC rate and the perm rate is about £12k (if I worked it out right). This could be negotiable and tbh even if it wasnt, its something I could make work if I really wanted to.

If not, I can go back to contracting. I will make my ltd dormant for the period.

Fully aware that an FTC wont give me career progression/growth etc. What it does do it get me out of the public sector (something I have been looking to do for a while) and open the door to a new industry.

Well good for you. FTC is direct with the prospective end client.

The question for you, then, is this the only game in town? Do you really need the money? Family, kids, debt, loans , etc if so, then take the FTC, it will give you stability for 9 months as you said.

In contracting, IMHO, it very rare that you can get a promotion anyway. If others have a different career experience then they can relate it.

What is it do you want to achieve in a career?
Technical - software engineer, senior software engineer, technical lead / architect
Non-technical: business analyst, project manager, program director, PMO
and some people don't care about powers and big company job titles and simply exclaim, "just give me the money!"

If I imagine myself in the shoes of Client Co, then 1) I am feeling hurt, because I lost a resource previously, my critical project is delayed and could be again 2) I want hedge the risk of the next person I hire in with this FTC (you) regardless of notice period and 3) I want to save money still £12K on the new person expenditure (you) just in case my fingers are burned again.

Good luck in your decisions!