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PERMANENT, CONTRACT
& TEMPORARY WORK
EXPLAINED!
OUR IMPARTIAL GUIDE TO WHICH
EMPLOYMENT ROUTE IS BEST FOR YOU
ASC Connections - the technical and business recruitment experts
This is the top concern of people new to contracting and it’s
completely understandable. You’re no less likely to get a new
contract than you are to get a new permanent job. The recent
turbulence within employment also shows that it’s wise to
question just how secure a permanent job is anyway.
CONTRACTING BENEFITS
Typically you can earn more money from a contract because
you’re being hired for your specialist skills to achieve a particular
goal for the company. There are other benefits such as being
able to move around more freely and gain more experience but
also to work more flexibly both in terms of location and hours.
‘CONTRACT’ vs ‘FIXED TERM’
We realise this one is confusing but they are different. When
recruiters talk about ‘contract’ work they will typically mean a
few things: that you’re being hired in a very specific capacity and
that you’re being paid either hourly or daily. You’re also viewed
very differently to a permanent employee. A ‘fixed term contract’
is exactly the same as a permanent job except it’s confined to a
specific period of time, usually a year or 18 months.
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That’s somewhere in between ‘contract’ and ‘fixed term’,
you’re being hired to do a particular job for a specific period of
time, but you’ll probably be treated like an ordinary member of
staff. You’ll most probably fill out a time sheet with the hours
you’ve worked, which may be full or part time, and get paid on
an hourly rate.
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DON’T YOU JUST RECRUIT PEOPLE
FOR NEW PERMANENT JOBS?
The traditional view of employment is a permanent job and
this does represent a lot of business. This is where the main
purpose is to facilitate your introduction to a new employer.
An equally large and ever-growing amount of our work is
on a fixed-term or contract basis. There are many reasons
for this growth but it’s still something that many people are
either wary of or simply don’t understand.
CONTRACTING & JOB SECURITY
WHAT’S TEMPORARY WORK?
CONTRACTING PAYMENT TERMS
If you take a ‘fixed term contract’ or ‘temporary work’ then you’ll
be paid just like a permanent employee via PAYE into your bank
and some temporary work will be like this too – the recruiter
will make it clear to you. But for most contract work you’ll be
paid one of two ways: via a limited company or an umbrella
company. A limited company is best suited to people who are
paid high fees and this is a company you own and manage for
the purpose of contracting. An umbrella company is a third party
service who will process your payment as a contractor.
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• If you wish to have more flexibility when it comes to who you work
for, when you work and where you work, your best option is to opt
for a contract.
• If you prefer to know where you’re working and know specifically
how long it will last your best option is a fixed term contract.
• A temporary contract is the best option if you wish to have a fixed
term and regular payments for doing a specific job.