fixed term pro rata

[HardCop]

Noticed the following in the contract:
...
ACCEPTANCE OF OUTSIDE APPOINTMENTS
Civil servants are required to obtain the agreement of the Government before
accepting any offer of employment outside the Civil Service, which would start within
2 years of leaving Crown employment. This applies if:

you are a member of the Senior Civil Service; or
your official duties in the 2 years before leaving Crown service (or earlier if the
association has been of a continued or repeated nature) resulted in personal
involvement with the company or other organisation making the offer; or access to
commercially sensitive information of its competitors.
...

normally would a short term IT/software development work fall into this.
This looks like a hefty price for a short time work in the civil service. Also what is the procedure of 'obtaining the agreement of the Government'.

[mudskipper]

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?

£40K pro-rata for 6 months sounds like £20K. Similarly, 25 days holiday = 12.5 days. Make sure you know what you're signing up to.

[formant]

In a temporary employment contract you're not normally compensated for the lack of long-term job security, meaning if they make you perm thereafter, it's unlikely that they'll offer you a lower salary.

With regards to the holidays, well those 25 will be pro rata as well, so more like 12.5 for the 6 months. Not sure what's unusual about that - that's normal in temporary employment. It's only in 'proper' contracting/agency work that you get no holiday or sick pay (but a rate of pay that makes up for this).

If the job is better paid and an overall better opportunity than your other offers, I'd say go for it. Make it add value to your CV so that just in case they don't keep you on you'll move on to something else after your time with them. I find that globally recognised company names/organisations can add a lot of credibility to your CV.
Regarding the small team vs big team thing - go for the new experience so that you can put on your CV that you've worked in a variety of circumstances.

[HardCop]

Thanks for the advise.
Regarding the perks it says its pensionable from the start as well as 25 days holidays. So its quite confusing esp the holidays . The reason why I am interested in this role as its quite a large and well reputed governmental organisation(subsidised onsite gym, restaurant). I have also got a few other offers - they are permanent but paying a bit less. In 6 months time I am not sure if I would be in this position i.e. easily get offers. What do you guys suggest should I go for it. I suppose the main question is : working for a large organisation as against a typical small IT software house. I have mainly worked in small-medium teams and never in a big team. Not sure how a big team will work out for me.

Also if they do offer me a permanent role .. say after initial 6 months would it usually be the same pay scale?

Confused :-(

[formant]

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.....

No doubt some employers have a tiered benefits system, be that by length of service or salary grade. But officially they're not allowed to discriminate between temporary and permanent employees. Which is of course a pointless rule, as no employment tribunal will actually hear your case if you haven't been employed for the now two years (unless the issues relate to the equality act or public interest disclosures). I was at Caterpillar not too long ago and despite my temporary contract I got all the same perks as the permies on and surrounding my salary grade. The truly fancy perks didn't start till a few salary grades higher up.

But yes, what you don't get is the higher salary for the lack of long-term job security. But depending on what you can get out of this job it may still be well worth it.

[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.

[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.

[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.

[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.....

[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.

[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.

[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.

[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.

[NotAllThere]

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

[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?