FTCs: the future of contracting?

[jamesbrown]

You can't be on an FTC with an agency, it has to be direct with the company you're doing the work for.

You should get the same or equivalent benefits as a 'real' employee but there may be practical reasons for not giving the full suite of benefits (HMRC in the link below use the rather silly example of not giving a company car to someone on a 3 month FTC due to the cost).

You become a permanent employee if you're on a FTC for 4 or more years, although there seems to be a sneaky get-out from this.

Fixed-term employment contracts - GOV.UK

Yeah, there are definitely workarounds. A lot of postdocs and research fellows in unis are on FTCs and they aren't guaranteed permanent employment after 4 years if there are objective grounds for the FTCs (like discrete funding).

[LondonManc]

Are you an FTC or an employee? FTC's have been around awhile and we've also seen agents trying to employ contractors in the past. I posted a thread on this not long ago. https://www.contractoruk.com/forums/...tml?highlight=

FTC is fine. It has an end date and you know the score. Employing them isn't (IMO). You think you've go rights and are safe but you will get dropped as soon as the contract you are working for ends. They won't be moving you around like a consultancy or anything.

Try and define if it's FTC or fully employed.

I'm a perm, happy where I am NLUK; I'm not talking about my situation. I'm talking about an option for future contracts.

You can't be on an FTC with an agency, it has to be direct with the company you're doing the work for.

You should get the same or equivalent benefits as a 'real' employee but there may be practical reasons for not giving the full suite of benefits (HMRC in the link below use the rather silly example of not giving a company car to someone on a 3 month FTC due to the cost).

You become a permanent employee if you're on a FTC for 4 or more years, although there seems to be a sneaky get-out from this.

Fixed-term employment contracts - GOV.UK

Yeah, I know - but you're generally recruited by an agency in IT.
I'm saying that FTCs *could* be an alternative to both umbrellas and inside/outside determinations as a replacement for contracts. with the right wording. Obviously there would be a general binning off of FTCs after, say, 22 months, but it's a way for both clients and contractors to carry on "as is" as close as possible (apart from the obvious massive hit to two-director MyCos.

[wattaj]

...but it's a way for both clients and contractors to carry on "as is" as close as possible (apart from the obvious massive hit to two-director MyCos.

It absolutely is not. FTC rate are permie equivalent; who in their right mind would take that for a short-term, no commitment gig?

[LondonManc]

It absolutely is not. FTC rate are permie equivalent; who in their right mind would take that for a short-term, no commitment gig?

Ah, you're missing my point - these FTC gigs would be at traditional contract rates (using the standard contract calculator perhaps).

[wattaj]

Ah, you're missing my point - these FTC gigs would be at traditional contract rates (using the standard contract calculator perhaps).

Good luck with that.

[northernladuk]

Ah, you're missing my point - these FTC gigs would be at traditional contract rates (using the standard contract calculator perhaps).

But that's not what FTC's are. They are employment so would include benefits and be on a pro-rata rate.

I think you are on the right track of creating something new but FTC's are very well defined and contractor rates do not come in to them.

Maybe it's just a terminology thing.

[LondonManc]

But that's not what FTC's are. They are employment so would include benefits and be on a pro-rata rate.

I think you are on the right track of creating something new but FTC's are very well defined and contractor rates do not come in to them.

Maybe it's just a terminology thing.

FTC2.0?

I'm just trying to think outside the box to give contractors and clients what they have now, or as close as they can without the hassle of thinking about IR35. FTC gets you your employee perks but takes away your slidiing rate calculations for salary vs divis and still make working-away contracts viable for all.

[GigiBronz]

My humble opinion is that you are wasting your time here.
Ir35 was step 1, carving out alternative employment methods. Step 2 will be loosening employment rights. And you have a new employment model that greatly benefits the employer.
On the side, paid health insurance will creep in and the points based immigration system will enable access to resources across the globe.
Welcome to capitalism 2.0. Will we be better off? Considering the imbalance in a negotiation between the two parties, I would think not.
To answer you question, we will be most likely all on FTC’s but without stipulated end date. All we can do is adapt.

[edison]

I've definitely seen more FTC roles come up in the last month or two. The HR department at my last client thought FTC was most likely the long term 'solution' to IR35 for them. Not sure about that but I saw one recently for a three year fixed term Head of IT which seemed ridiculous.

[elsergiovolador]

You don't have to worry about IR35 if you declare someone inside. There is no penalty for wrong inside determination.

You only need a couple of things in the contract to ensure is not going to be appealed, for example no right to substitute and a that the work will be done by named person only.

Even if there is appeal, you can just terminate the contract or re-iterate why it is inside from the beginning.