Fixed term contact?

[BigRed]

I'm discussing renewal and the agency say client prefers a 12 month fixed term contact. What's the implications of this compared to my 6 month daily rate contract?

Will I still be outside IR35?

[SueEllen]

Talk to the client directly and confirm they want you on a fixed term contract.

The agency would be creaming money of your rate.


No you we won't be outside IR35. But your concern should be your rate.

[northernladuk]

You need to speak you your agent and try and understand the situation you are in rather than ask a question with absolutely no details to a bunch of randoms.

Ask him what it is about, get a copy of the contact and read it thoroughly and then ask the agent any questions you have. It's your contract so you have to take a bit more responsibility. A little clue to help your investigations... Ask him if it is a fixed term employment contract...

Also, try and use the search...

https://www.google.co.uk/search?q=fi...hrome&ie=UTF-8

[jamesbrown]

Not entirely sure what you mean by a "fixed term" contract in this context. Do you mean a fixed price contract, as opposed to time and materials?

[kevpuk]

I would be worried that this is shaping up to be semi~perm - Fixed Term Contracts tend to talk about 'salary' and the like......
Deffo need to talk to the Agent to understand the contract on offer, and might be worth seeing what the Client is expecting too.

[cojak]

I'm discussing renewal and the agency say client prefers a 12 month fixed term contact. What's the implications of this compared to my 6 month daily rate contract?

Will I still be outside IR35?

The implication is that you'll probably be getting significantly less day rate than you get at the moment.

Normally FTC contracts don't offer a day rate they offer something like '£40K per annum (FTC)' rate, and they don't expect you to recognise the difference.

But just take that salary figure and divide by 1000 and times by 7.5 - that's the day rate you'll be getting, just like a permie.

But without permie benefits: no pension, no holidays, no sick pay, etc.

So, a loss to you but a massive benefit to the client - a very cheap contractor.

[BigRed]

Bit vague I know

You need to speak you your agent and try and understand the situation you are in rather than ask a question with absolutely no details to a bunch of randoms.

Ask him what it is about, get a copy of the contact and read it thoroughly and then ask the agent any questions you have. It's your contract so you have to take a bit more responsibility. A little clue to help your investigations... Ask him if it is a fixed term employment contract...

Also, try and use the search...

https://www.google.co.uk/search?q=fi...hrome&ie=UTF-8

Thanks Northernladuk, I know I've supplied no details but I had just come off the phone with the agency who had basically said that they preferred fixed term contracts and was pushing me for a salary range I would be looking for. I suspected what your links show, that basically you become a permie. I still don't see how this benefits the company, but I'll look up the equivalent permie salary to my daily rate and take it from there.

[cojak]

Thanks Northernladuk, I know I've supplied no details but I had just come off the phone with the agency who had basically said that they preferred fixed term contracts and was pushing me for a salary range I would be looking for. I suspected what your links show, that basically you become a permie. I still don't see how this benefits the company, but I'll look up the equivalent permie salary to my daily rate and take it from there.

Divide by 1000 then times by 7.5, then you'll see how it benefits the company...

And expect the agent to laugh at you when you state that you want the equivalent permie salary of your day rate.

[BigRed]

^ I'm sure they will, to be honest I'm stalling a bit while I explore other prospects. I'm finding when I tell agencies I have a 4 week notice period they lose interest.

[cojak]

Then hand in your notice now.

You'll look more attractive with every day that passes.