The great fixed-term contract debate

[socialworker]

It is very common for project jobs to be FTC in the public sector as they are funded by capital funding rather than revenue funding. Organisations are unable to take on a permanent permie for capital funded posts, so project staff tend to be on 1 /2 / 3 year FTCs and may be made redundant at the end. It is part of the reason why most of my work is in London: a decent PM is not going to work on a FTC in London on 35k p.a. The real shame is that there are often excellent operational managers who could be trained into a PM role, but they won't give up their permie role for a FTC. It's a mess, really.

Secondments are quite common in these situations, where Ive worked.

[NorthWestPerm2Contr]

OK folks, let's have a proper debate about fixed-term contracts.

First of all, I've never done one. I must explore why, as I have considered them at least initially.

I just see it as permie pay for contractor work for 12 to 24 months. "Oh it's better than nothing" shout all the permie-minded people when you're out of contract. Then they don't get it, think I'm mental or suicidal when I turn them down. "At least you don't have to look for something else for 12-24 months" & "It's best to get 12-24 months of solid work experience down than maybe nothing" they scream in their incredulity "it will LOOK better on your CV" they plead.

Reasons I've rejected them:-
1. Opportunity cost.
2. Unable to put expenses against earnings to reduce tax
3. PAYE tax rates

But what about the permie benefits I could enjoy from a fixed-term contract? I still don't know what those things are, do you? Holidays and sick days I hear them say. Employment rights say others. Huh? Still don't get how that warrants accepting an effective daily rate of half of a normal contract. It does not compute!

I've had a couple of conversations this afternoon with some permie friends/family who still don't get why I think negatively like I do on these fixed-term contracts. I just don't buy them. Do you?

The only thing I want to look good is my NET WORTH. And my hair.

There is not much of a debate here, FTC are S**T

[jmo21]

Agree with others, there is no point in contractors like us discussing these, the word contract just confuses things.

It may be difficult for us cash-generating contractors to imagine, but to some people, who are struggling to find permanent work, these will be better than nothing.

Would I ever take one, maybe with the promise of learning some new tech? My feeling is that most companies who would offer a role like this probably wouldn't be selling it on bleeding edge technology, so this probably wouldn't be a factor

[CloudWalker]

I was looking at FTC but was put off when I found it would make it harder to get a mortgage.

Fixed Term Contracts

This is where a job is only for a set period, although the contract may be renewed or extended. You should always check if your client is on a fixed term contract.

Applicants must have been employed on a fixed term contract basis for a minimum of 12 months. If they have not, they must have at least 24 months remaining on their current contract.

A copy of the current employment contract would be required as proof of income and employment.

Where applicants state that their current contract is unlikely to be renewed, we will consider

Length of time with current employer
If the contract has been renewed before
Remaining term of the current contract
If the current contract is likely to be renewed and, if so, for how long
The prospects of obtaining alternative employment in the same type of work at a similar salary
Whether the contract is connected to a specific project
If your client is employed on a fixed term contract, but invoices the employer via their own Limited Company, they would be treated as self-employed

[BolshieBastard]

As NLUK has said before, FTC is an incorrect term. They should be referred to as FTEC's, Fixed Term Employment Contracts.

[kettlebellBA]

I went for 2 a couple of years ago. Reasons being that there were naff all relevant proper contracts out there, they were very local (3 miles) and involved a sector change which could have been beneficial in the mid - long term.

I didnt get either, feedback from both being along the lines of - nice person, competent BA BUT clearly only wanted to do the 6 / 12 months we advertised for....

I see them as being a tool for ClientCos to get perms in on a "try before you buy" basis - i.e. ship them out at the end of the FTC if they are crap, or extend, or take on permanently if they are a cultural fit.

[Whorty]

Interesting, socialworker.

Do you think that having a fixed-term contract on your CV devalues your contracting credibility? I mean, client co and agent may then conclude you can be pushed around more and tempted on lower rates.

Been contracting since 2007 and in that time I've taken two FTCs, and enjoyed them both. Both with good blue chip companies, both interesting roles with good experience. Pay for both was 80k+ with all the benefits (e.g. 20% pension) - not as good as a contract day rate, but for those 2 years I had an interview free time

I see it as horses for courses.

[csonakos]

To me fixed-term contracts are the worst ever: low pay for a temporary period with the possibility to extend the contract.

Charities love them...