What Are The Risks Of Being A Contractor??

[joey122]

Given that permies can get chopped with a months notice, can someone explain clearly what exactly the risks of being a contractor are?

I am talking specifically about job security here - Why is it that contractors are deemed to be less secure?

[AlfredJPruffock]

Given that permies can get chopped with a months notice, can someone explain clearly what exactly the risks of being a contractor are?

I am talking specifically about job security here - Why is it that contractors are deemed to be less secure?

The term 'permenant job' is a misnomer - it should be abolished.

A 'perm' job is not permenant - it is a contract with an unspecified duration subject to a notice period from the employer - where is the permenance in that arrangement ?

Wherwas 'contractors' - have a contract of a specfied duration and subject to a notice period.

* I have had contracts which are 'rolling' and dont have a specified completion date

Due to the way some companies allcoate their budgets for headcounts I have seen 'perm; staff being laid off while I continued working - because I was under a different budget.

[gingerjedi]

Contracts have a defined end date, little or no notice, you go to prison if you don't pay tax.

HTH

[Not So Wise]

We might not get the chop, we will get the chop (at least if we are not disguised employee's)

And unlike the permies, no redundancy/golden parachutes/comeback for unfair dismissal so forth, just there's the door, don't let it hit you on the way out. On top of that if something happens like sickness/pregnancy we are out of pocket. Same with holiday leave, pensions and other misc.

Also, though unlikely, client can sue us (or appropriately our Ltd's) if we cock up

[DimPrawn]

You have employment laws and tribunerals protecting you as a permie. You might even have a Union to support you.

You have tax laws and tax inspections hounding you as a contractor.

[weemster]

If you are LTD not sure you can claim dole.
No redundancy concept.
Sickness.

[swamp]

I'd say the big risks are, in order,

* long illness
* warchest too small (or lifestyle too expensive)
* taxman (IR35, S660, BN66 etc.)
* agency going bust
* being a niche or product-based contractor which falls out of fashion
* being too low down and have your skills turn into a commodity (ie desktop support)

Permies can suffer many of the above, with the exception of the taxman, but the consequences are usually less pronounced or more time and warning will be afforded.

[moorfield]

A 'perm' job is not permenant - it is a contract with an unspecified duration subject to a notice period from the employer - where is the permenance in that arrangement ?

Plus you have to suffer the tosh that is "development plans" and "appraisals"
-all just an excuse not to give you a bonus.

[snaw]

Occasionally you mistakenly venture into a strange on-line world, populated by an odd assortment of squirrel botherers, Irish dominatrixes and chutney spoon lickers.

It's a terrible fate.

[weemster]

Plus you have to suffer the tosh that is "development plans" and "appraisals"
-all just an excuse not to give you a bonus.

I remember my last permanent job (many moons ago) and my 'personal
development manager' duing my appraisal starting going off on one
about his personal development and how he was in the wrong role etc Makes
me laugh when I look back, it was one of the things that helped me decide to
go contracting...............now what was the defence company called EDS.......or something......!?!??!