Reply to: The great fixed-term contract debate

[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...

[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.

[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.

[BolshieBastard]

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

[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

[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

[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

[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.

[masonryan]

Perhaps if some new skill or experience was being gained, I would consider a FTC.

[Old Greg]

Employment rights and unions.

If you have someone on a fixed term contract then they can claim certain employment rights i.e. if you bin them and it wasn't due to proven performance issues you have to ensure there is no job they could possibly do within 3 months of leaving. You have to ensure the pay meets minimum wage and can't do sneaky things like making them self-employed.

Plus anything where unions could get involved is messy.

The way it works in the NHS is that when a FTC employee is coming to the end of their contract, they may or may not be given a new contract depending on whether their role is still needed. If there is new contract, they will be given priority to apply for any roles over a certain time period (can't remember how long). If they are unsuccessful they will be made redundant.

[SueEllen]

Client co have some people on these, with permie pay rates. But they are treated as contractors - identified on their badges/email as 'cont', and AFAIK, excluded from permie company presentations etc. Very odd.

How long have they been at the client?

[mudskipper]

Client co have some people on these, with permie pay rates. But they are treated as contractors - identified on their badges/email as 'cont', and AFAIK, excluded from permie company presentations etc. Very odd.

[Old Greg]

https://www.gov.uk/fixed-term-contra...dterm-contract



They are not contracts as we see them so shouldn't really be considered on here. Closer to a perm contract than what we know. It's just the term 'contract' in the title that gets us looking but we shouldn't. It's a temporary perm contract and nothing more.

I know BUPA use them have two friends, one was taken on after the 4 years, the other one binned. 4 years at a company not knowing if you have a solid job and then get binned at the point they have to tell you your perm. Just a disgrace!

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.

[Andy Hallett]

I thought under 2years you had no rights apart from race/sex discrimination? They can always put in a probationary period to weed out the hopeless.

That changed a few years ago to 1 year.

[socialworker]

To me the daftest thing is when they use two middlemen, an agency and something called Comensura that adds very little value as far as I can see. I did a bit of recruitment at one stage and Comensura produced candidates that were entirely outside the spec. Usless parasites but they have persuaded some gullible councils to use them.