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Going from permie to contract at the same company?

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    Going from permie to contract at the same company?

    Hi,

    I'm investigating my options in entering the contract market and obviously the most important contract is the first one. My current employee is a fairly small business and I was wondering if anyone had ever switched from permanent to contract work and approached their initial employer for that first contract?

    This has various benefits as I see it:
    • Already have a good idea about what to expect, people, job
      Provides the first contract
      Allows for an income while you get used to contracting


    It also has some drawbacks:
    • The employee might think you are taking liberties
      Might call your bluff (but if you're doing it anyway )
      People might resent you


    So, has anyone done something similar? Did it work or was it a nightmare from start to finish?

    #2
    You will fall foul of the IR35 legislation by doing this and will have to pay more tax.
    Listen to my last album on Spotify

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      #3
      If your employer still has a need for you then yes, he will see you as TTP.

      In 99% of cases he can't afford not to call your bluff, as if he lets you switch "everyone will want to".

      The chances of your current employer letting you do this is only slightly better than you winning the lottery. I even know of some companies who will never re-employ any ex-staff as contractors, lest it should encourage the perms who stayed to 'contract'.

      tim

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        #4
        I suspected as much for the IR35 and you're also right about them still needing me to do my current role.

        They're right at the start for a fairly big IT job and I'm the only one who in the company who knows the ins an outs of the IT aspect. They would be inbetween a rock and a hard place when I leave.

        Also, if I did go and come back then it might encourage some of their scarce and more talented developers to try something similar.

        The more I think about this in the light of day the more it's got improbable written all over it.

        Thanks

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          #5
          If they need you that much, you could always stay permie and take the pay rise...

          That's what my last permie job offered me. Didn't take it though - my leaving wasn't about the money (believe it or not), it was about getting to work for someone I like, trust and respect...
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            #6
            Originally posted by twigmeister
            I suspected as much for the IR35 and you're also right about them still needing me to do my current role.

            They're right at the start for a fairly big IT job and I'm the only one who in the company who knows the ins an outs of the IT aspect. They would be inbetween a rock and a hard place when I leave.

            Also, if I did go and come back then it might encourage some of their scarce and more talented developers to try something similar.

            The more I think about this in the light of day the more it's got improbable written all over it.

            Thanks
            Never over estimate your own importance when negotiating, you are replaceable and usually a lot more easily than you think.

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              #7
              Originally posted by rootsnall
              Never over estimate your own importance when negotiating, you are replaceable and usually a lot more easily than you think.
              Yeah it sounded abit bigheaded after I wrote up, but it is fairly accurate in this instance. I am replaceable, but their timescales are so tight I think it would hurt them abit.

              Originally posted by TheFaqqer
              That's what my last permie job offered me. Didn't take it though - my leaving wasn't about the money (believe it or not), it was about getting to work for someone I like, trust and respect...
              I'm similar, its not so much about the money, I'm just ... frustrated about a few things.

              Comment


                #8
                I know lots of places who will show you the door or placate you initially and get you out when things are more stable.
                I know of none that will say 'yes please, can you roger me again'
                Wait for review and ask for big pay rise, they say no - you leave. OR hand in notice, when asked why, say you are looking for more reward and leave it at that (don't say place is sh1t, people clueless etc). You are making it clear it is the reward that is the problem which gives them an easy option to resolve it by bunging you more.

                Comment


                  #9
                  Originally posted by rootsnall
                  Never over estimate your own importance when negotiating, you are replaceable and usually a lot more easily than you think.
                  Gerry Weinberg said in (IIRC) 1978 "If an engineer gets himself into a position where he is indispensible, you should sack him". The theory is you should take the pain whilst you are in control, it will only get worse if you don't.

                  Having all your system knowledge in one person's head is a stupid position for a company to get itself into, it should rectify it ASAP.

                  tim

                  Comment


                    #10
                    Prior to leaving my old permie job I was the key designer/developer of their flagship software (90% of the companies revenue). I warned my manager that I was thinking of leaving unless he eased my workload onto some of the other developers who were faffing around all day every day. Nothing had happened a month later when I resigned and it really screwed the company - nobody knew what to do. I worked four weeks notice watching them all running around like headless chickens, and even now they're not doing so well. I offered to come back on a short-term contract but they refused and are suffering because of it. The problem a company has is that if they take one permie on as a contractor then they can't prevent the other staff thinking they should do it too.

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