fixed term pro rata

[HardCop]

Hi Guys,

I am new to contracting as well as a beginner in IT(compared to other folks here :-))

I have recently been offered a fixed term pro rata contract of £40,000 for an initial period of 6 months.
Working hours are 36 per week as well as I have the full annual holidays entitlement of 25 days(similar to permie full time employee) and will be taxed like a permanent employee.
I would like to know my take home amount and how to calculate it. I have been told after 6 months most likely Iwill be taken as a permanent employee. Is there a catch here? From past experiences how does such contracts end up?

[NotAllThere]

This is a short term employment contract. Find a PAYE calculator to work out your take home pay.

[cojak]

and remember that 'most l likely' != 'definitely'.

They used that as the carrot for you to accept the contract - don't rely on the offer still being there at the end.

[northernladuk]

I would not call this type of arrangement a contract in anyway we understand. This is just a cheap and easy way that the client can have you for 6 months to see if you and the role pan out and if they do they can take you on. If they don't and are still unsure they will extend you again and again until they reach the legal threshold where they have to let you go or give you an offer.. 2 years isn't it?

It's working permie without the perks and security.

The catch is there is nothing in it for you. You are not being paid extra to cover the risk or the lack of benefits and the client doesn't have to treat you properly and can get rid when he wants.

[formant]

The Salary Calculator - 2012 / 2013 Tax Calculator

Take home pay for 40k (assuming no employer pension scheme contributions or childcare vouchers):
Yearly: £29,733.60
Monthly: £2,477.80
Weekly: £571.80
Daily: £114.36

Working on a temporary employment contract isn't 'contracting'.
I've done it quite recently. Don't assume they'll keep you, though extensions may be likely. If their intentions were firm they'd offer you a permanent contract from the start.

[formant]

It's working permie without the perks and security.

The catch is there is nothing in it for you. You are not being paid extra to cover the risk or the lack of benefits and the client doesn't have to treat you properly and can get rid when he wants.

Well, normally they do have to offer you the same 'perks' as a permanent employee, and in terms of security - well it's more 'secure' and more predictable than contracting.

Issue is mostly that although you have a lot more employment rights than a contractor in theory, enforcing these rights at an employment tribunal only works in very severe circumstances. But that's the same with any permie until they have worked in the same place for 2 years (formerly 1). Until then, de facto, employers can let you go whenever without real consequences.

[northernladuk]

Well, normally they do have to offer you the same 'perks' as a permanent employee, and in terms of security - well it's more 'secure' and more predictable than contracting.

Issue is mostly that although you have a lot more employment rights than a contractor in theory, enforcing these rights at an employment tribunal only works in very severe circumstances. But that's the same with any permie until they have worked in the same place for 2 years (formerly 1). Until then, de facto, employers can let you go whenever without real consequences.

It's possibly different at different companies but I have two friends who have started at BUPA over the last few years on these types of contract and until they get a full time contract they didn't get the healthcare cover!!!!! In both cases they were extended on the contract to the maximum limit before being given perm contracts.

I guess the devil is in the details of each case.....

[BolshieBastard]

I would not call this type of arrangement a contract in anyway we understand. This is just a cheap and easy way that the client can have you for 6 months to see if you and the role pan out and if they do they can take you on. If they don't and are still unsure they will extend you again and again until they reach the legal threshold where they have to let you go or give you an offer.. 2 years isn't it?

It's working permie without the perks and security.

The catch is there is nothing in it for you. You are not being paid extra to cover the risk or the lack of benefits and the client doesn't have to treat you properly and can get rid when he wants.

This.

A few years ago, an agent tried to trick me into applying for one of these 'short term contracts.' When I questioned him about rate he was very evasive and didnt want to disclose this for obvious reasons which soon became apparent.

Turns out, the 'rate' was 'pro rata' and as soon as he said that, I knew it was a sham contract.

In fact, I'd go so far as to suggest any agent advertising these types of work as a 'contract' should be sued under misrepresentation.

They arent contracts in the accepted or even broader sense. They are permie short term roles and should be described as such or fixed term appointments.

[rootsnall]

Hi Guys,

I am new to contracting as well as a beginner in IT(compared to other folks here :-))

I have recently been offered a fixed term pro rata contract of £40,000 for an initial period of 6 months.
Working hours are 36 per week as well as I have the full annual holidays entitlement of 25 days(similar to permie full time employee) and will be taxed like a permanent employee.
I would like to know my take home amount and how to calculate it. I have been told after 6 months most likely Iwill be taken as a permanent employee. Is there a catch here? From past experiences how does such contracts end up?

Sounds like you are being given a 6 month trial for a permie job and a chance to learn some new skills. Assuming you aren't chucking in some other highly paid job and have some interest in becoming an IT bod then it sounds like a decent opportunity to me.

Fixed term contracts have a bad name amongst experienced contractors as its usually the client Co trying to get you on the cheap with no intention of keeping you around once the job is done.

[cojak]

It's possibly different at different companies but I have two friends who have started at BUPA over the last few years on these types of contract and until they get a full time contract they didn't get the healthcare cover!!!!! In both cases they were extended on the contract to the maximum limit before being given perm contracts.

I guess the devil is in the details of each case.....

But as NLUK says, it depends what you want. If you're hoping for a permie job at the end of it they may offer it to you.

Just be prepared that they may not.