Desperately need advice!!!!!!! Contract v Permanent job - which would you choose?

[AnnO'Neemus]

Your suggestion of "deep unhappiness" if you go for the permanent route indicates that you want to stick to be a contractor. A friend of mine was in a similar position a year ago, and we talked about it a lot. One of the reasons he wanted to stay as a contract was that he could work three days a week, so allowing himself nice long weekends, and brilliant work life balance. He had been a contractor at the same company for nearly 10 years, and was very happy with the work and the money. If he had gone permanent, he would have begun to accrue pension benefits and would have got holiday pay, but would have had to work longer hours for the same money. After a lot of discussion and consideration, he chose to stay as a contractor. I bet you can guess what happened next? A few months after he made that decision, the company decided that, in response to the recession, they were cutting their contractors, so they called him in and let him go. He didn't even have a leaving party, after 10 years with the company. He remains unemployed, because his field of work is quite specialist, and the recession means there is not enough work available.

When did that happen?

I'm no employment law expert but it's my understanding that a company can't get round employment law by calling their workers contractors. If you've worked for the same company for two years or more them you are, de facto, an employee, and should be entitled to holiday and sick pay and redundancy.

Your friend might have a case for unfair dismissal or at least a claim for redundancy pay.

But it all depends when this happened as there are time limits to bring claims.

Again, I'm no expert, but your friend might want to do some research on this and chat to someone who is an expert.

 

[se5]

When did that happen?

I'm no employment law expert but it's my understanding that a company can't get round employment law by calling their workers contractors. If you've worked for the same company for two years or more them you are, de facto, an employee, and should be entitled to holiday and sick pay and redundancy.

Your friend might have a case for unfair dismissal or at least a claim for redundancy pay.

But it all depends when this happened as there are time limits to bring claims.

Again, I'm no expert, but your friend might want to do some research on this and chat to someone who is an expert.

I think the difference here is between temporary workers and contractors.

You're right an employer has obligations as you say to individual workers if they have worked for a company for 2 years or more in one spell regardless of what their contract/ understanding may state.

With contractors its a different relationship as effectively the indivdiual is an employee of their own company. The overall employing company then has a business relationship with the contractor's company to provide a business service, ie the work of the individual for so many hours a week/ for the length of a project. For this reason the overall employer does not have to pay holiday pay/ National Insurance/ pension contributions etc - all of which are paid by the contractor's company