Contract jobs in UK

[prem12]

Hi,

I am gatherting facts related to contract jobs in IT in UK, which pay upto 500 pounds per day.

I understand that the pay is high mainly becuase the job is temporary. Is that correct or is there any other reason for this.

Thanks.
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MOTORCYCLE TIRES

[goldfish]

Contract jobs pay more because:
- You don't get paid for any days you don't work (sick day, holiday, public holiday)
- There are no "benefits" such as bonuses, pension, healthcare, training, etc
- In general you can be fired more quickly than a permanent staff so there is a "risk premium" for taking on a less stable job

[prem12]

Thanks Goldfish.

Can you please comment on how stable a contract job generally is? Have you heard of contracts being scrapped and if so how often does it happen.

Thanks.
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HERBALAIRE VAPORIZER

[pantaiema]

Well described.

Contract jobs pay more because:
- You don't get paid for any days you don't work (sick day, holiday, public holiday)
- There are no "benefits" such as bonuses, pension, healthcare, training, etc
- In general you can be fired more quickly than a permanent staff so there is a "risk premium" for taking on a less stable job

[pantaiema]

Difficult to say. It depends on the company , the industry, etc.
If they have more work than people that U r save. But it the otherwise prevail than the contract employer will be the first one to get sacked.

Thanks Goldfish.

Can you please comment on how stable a contract job generally is? Have you heard of contracts being scrapped and if so how often does it happen.

Thanks.

[prem12]

Thanks pantaiema for the reply

While the points lid down by Goldfish ara valid, I am curious to know what GENERALLY happens in IT industry with the investment banks?

Are the contract jobs axed frequently. I admit that they are the first to be axed, but in a normal market scenario, what happens.

Thanks
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Zx14 Vs Hayabusa

[VictoriaS]

Actually, contract workers DO have some employment and sickness/holiday rights in the UK.

Victoria

[SYH]

Actually, contract workers DO have some employment and sickness/holiday rights in the UK.

Victoria

Like what?

[VictoriaS]

They have to be given holiday and sickness/maternity pay.

Victoria

[SYH]

They have to be given holiday and sickness/maternity pay.

Victoria

hmmm

[ishameeque]

I dont think that is right. The contractor will not get any benefit from the place of work. They may get benefit from the umbrella or their own limited company. But again, this is coming off from their own contract rate, which is allocated as such. In general, the end client do not pay any holiday or other benefits. If you dont work, you dont get paid.

[VictoriaS]

Genuine contractors and agency workers, as opposed to the purely self employed, are entitled to come benefits.

Victoria

[saby]

Hello all,

On a related note, I would like to ask the following question.

What about tax cuts in contract jobs? How are they managed? Same percentage as in permanent ones?

[pantaiema]

Victoria

This is true but what happen in reality is the the Job agent will give U 2 options of hourly rate.
-Option 1: Hourly rate without sickness/holiday entitlement
-Option 2: Hourly rate with sickness/holiday entitlement
Option will payless than option one so. Normally the people will opt to option 1 which let them without sickness/holiday entitlement. FOrm this structure it is clear that at the end agent do not pay any holiday/sickneess at all. If you dont work, you dont get paid.

Actually, contract workers DO have some employment and sickness/holiday rights in the UK.

Victoria

[pantaiema]

prem12

Unfortunately I could not tell U as I am not in this industry. But what I could see from my collegues working in investement Banks, they normally earn more than any other professions and it seems there are a lot of wokrs put there as they normally work over 40 hours a week.

Thanks pantaiema for the reply

While the points lid down by Goldfish ara valid, I am curious to know what GENERALLY happens in IT industry with the investment banks?

Are the contract jobs axed frequently. I admit that they are the first to be axed, but in a normal market scenario, what happens.

Thanks

[prem12]

Is the US mortgage fall out impact likely to affect the UK job market, perticularly the investment banks.

Any news as to till when is this impact likely to go reduce.
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