Contract Period & Security

[Anubis]

Hi, I'm new to the forums but have been a contractor for the last 5 years.

I just wondered what you guys think about contracts and their job security. OK, each day could technically be your last day, but its more than likely not the case. When you get a new contract through, do you think "great, garuanteed income and job security for x months" or do you still think that today could still be your last day?

It's a bit of a head screw to be honest and depends on the type of employer and job your doing, but in general what do you think?

If you get a gig for 6 months, have you ever worried that half way through the client will turn around and say they don't need you any more, hence you could be in trouble financially and your back on the bench? Do you budget for the "just in case" or don't you tend to worry (so long as you do your 6 months or whatever all is fine)?

I've never been told not to turn up mid-contract and always see through to the end, but in the back of my mind there is always the "it can happen" which sometimes makes it a little uneasy, especially when booking holidays, etc.

Have any of you been told not to turn up any more mid-contract? Is it ever likely to happen or do your clients always commit to spend in their budgets until the end of your gig (i.e. gauranteed income and job)?

[cojak]

I don't spend every penny I earn and have a good war chest.

I don't worry about it - if it happens, it happens and I certainly don't let it influence holidays. The only thing I do think about is not to take too many during a single contract.

[TykeMerc]

I don't spend every penny I earn and have a good war chest.

I don't worry about it - if it happens, it happens and I certainly don't let it influence holidays. The only thing I do think about is not to take too many during a single contract.

That pretty much sums up how I feel too although I tend to take holidays after contracts end.

I've a fair amount in the business and my drawn income exceeds my expenditure so if the unexpected was to happen I'm not that bothered.

[NorthWestPerm2Contr]

That pretty much sums up how I feel too although I tend to take holidays after contracts end.

I've a fair amount in the business and my drawn income exceeds my expenditure so if the unexpected was to happen I'm not that bothered.

Don't you find that ironic considering we always tell people we don't have "job security". The reality is it's the permies who have the lack of security not contractors. Once you have been contracting for 2+ years you will feel much more security than any permie.

Another thing to add is it depends how long you have been contracting. My first 3 months as a contractor were really tough in terms of the insecurity feel. Even after 12 months I only had 3 months warchest due to a combination of factors (debt, low starting rate, sick time off). Only now I have moved up the rate ladder and should have at least 6 months warchest by the end of this contract is it that I am starting to feel comfortable and relaxed from that point of view.

[Support Monkey]

I don't spend every penny I earn and have a good war chest.

I don't worry about it - if it happens, it happens and I certainly don't let it influence holidays. The only thing I do think about is not to take too many during a single contract.

Same here, many people have said to me over the years that as a contractor you have no job security, the truth is there is no such thing as job security any more for anyone, you can be laid off at any time whether permie or contract, however the difference for me and what make my possition more secure is "I am prepared for it"

When i finish my contract i am used to applying for jobs my CV is ready and i am prepared for the interview and the questions to ask and be asked, i am prepared to travel for my work however most permies are not prepared like this especially if made redundant after a long period at the same company, I also have money in the bank waiting because i am prepared for being out of work, how many permies say "thank god its pay day this week", some base there living on their monthly earning and have no backup plan I work on yearly earnings and keep a percentage back in the warchest.

So stop worrying about being laid off as its almost certainly inevitable that you will be at some point, spend your time preparing this will then eliminate the worry

[SueEllen]

Hi, I'm new to the forums but have been a contractor for the last 5 years.

I just wondered what you guys think about contracts and their job security. OK, each day could technically be your last day, but its more than likely not the case. When you get a new contract through, do you think "great, garuanteed income and job security for x months" or do you still think that today could still be your last day?

Is the glass half full or half empty?

As support monkey said there is no job security any more and at least by being a contractor you are going to have:
1. Your CV ready to go or almost ready to go with a little edit at all times
2. Savings to cover you for a few months to years if you can't work
3. Responsibility for yourself in terms of training, career progression, marketing skills etc as you are your own employer

[Wanderer]

I just wondered what you guys think about contracts and their job security. OK, each day could technically be your last day, but its more than likely not the case. When you get a new contract through, do you think "great, garuanteed income and job security for x months" or do you still think that today could still be your last day?

Permies get redundancy pay, contractors have to "self insure" against unemployment by building up a war chest. The great thing about the war chest is that unlike insurance premiums, you get to eventually keep the money if you don't pay out!

The other thing is that I've never personally had a contract terminated, they have either not been extended or I've moved on of my own accord. Not saying that it won't or doesn't happen but in my line of business I would normally expect 6 months work from a 6 month contract though I wouldn't be crying about it if I got cancelled nor would I bet the war chest on it.

In contrast, I can remember a lot of times when permies I've worked with were made redundant, quietly called to a meeting and marched out of the building without even saying goodbye. That's got to be much more unsettling than being terminated mid-contract. Indeed, I've contracted in places where they've made permies redundant and kept me on. Go figure.

Bottom line: Keep your war chest healthy and don't worry about things that may never happen.

[SueEllen]

Permies get redundancy pay,

If you have under 2 years service you get nothing.
If you are younger than 41 you are cheaper to get rid off

I know from talking to people who IT firms like getting rid off.

[Anubis]

Great responses chaps.

Seems like you're all like me; keep a safety cushion at all times and keep your head down and all should be ok. I was wondering if I was just lucky so far, esp with the recession and budgets being slashed all over the place - I know before your hired contracts can get terminated as a last min decision but I've yet to encounter anyone being told to leave prior to their end date (unless their epically useless or do something wrong).

Seems like once you get a contract it is pretty much garuanteed income and work. Although a contract is only really an agreement of terms and conditions (pay, hours, responsibility, etc) - the notice period indicates a client can still terminate contracts before the end date. This was the bit that always concerns me - I guess I have little to worry about based on your responses (unless something major happens).

[TykeMerc]

Contracts end before their term for many reasons, the point most of us are making is be financially prepared to cope in that eventuality.
As a contractor I provide my own security.