Permanent position Vs contract position (what's the difference?)
#1
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Thread Starter
Joined: Jun 2006
Posts: 263
Permanent position Vs contract position (what's the difference?)
I've got my first interview (with recruitment agent) for an "On-going contract position", whats the main differences between this and a permanent position and what do I need to be asking.
I know it won't included holiday pay, but what about superannuation? and will I need an ABN?
thanks
showdan
I know it won't included holiday pay, but what about superannuation? and will I need an ABN?
thanks
showdan
#2
Re: Permanent position Vs contract position (what's the difference?)
I've got my first interview (with recruitment agent) for an "On-going contract position", whats the main differences between this and a permanent position and what do I need to be asking.
I know it won't included holiday pay, but what about superannuation? and will I need an ABN?
thanks
showdan
I know it won't included holiday pay, but what about superannuation? and will I need an ABN?
thanks
showdan
#3
Re: Permanent position Vs contract position (what's the difference?)
I've got my first interview (with recruitment agent) for an "On-going contract position", whats the main differences between this and a permanent position and what do I need to be asking.
I know it won't included holiday pay, but what about superannuation? and will I need an ABN?
thanks
showdan
I know it won't included holiday pay, but what about superannuation? and will I need an ABN?
thanks
showdan
That's basically it although I'm sure I've got some of it wrong.
I can see no benefits for being an employee rather than a contractor - there is certainly no more 'job security' from being a staffie. I'm a contractor and always will be unless I get an exceptional staff job offer.
#4
Re: Permanent position Vs contract position (what's the difference?)
There are many options and you should get prof. advice. If you are an agency or direct contractor or 'rostered on' as they call it you are effectively treated as an employee and your rate will include super that will be deducted by the employer or agency. You can be a sole trader which is basically self employed or you can go limited company or family trust. With these you are responsible for your own super and it will not be deducted from your rate. You can also claim tax deductions for business expenses.
That's basically it although I'm sure I've got some of it wrong.
I can see no benefits for being an employee rather than a contractor - there is certainly no more 'job security' from being a staffie. I'm a contractor and always will be unless I get an exceptional staff job offer.
That's basically it although I'm sure I've got some of it wrong.
I can see no benefits for being an employee rather than a contractor - there is certainly no more 'job security' from being a staffie. I'm a contractor and always will be unless I get an exceptional staff job offer.
Is this the same case in Oz, Also do rates vary depending on where your LTD?sole trader?
Cheers
#5
Re: Permanent position Vs contract position (what's the difference?)
contractors tend to get a higher rate of pay than permanent employees. They get no holiday or sick pay though, so if you dont work a day you dont get paid.
I have known contractors to turn down permanent job offers from the company they have been working for simply because it would mean a pay cut.
I have known contractors to turn down permanent job offers from the company they have been working for simply because it would mean a pay cut.
#6
Re: Permanent position Vs contract position (what's the difference?)
contractors tend to get a higher rate of pay than permanent employees. They get no holiday or sick pay though, so if you dont work a day you dont get paid.
I have known contractors to turn down permanent job offers from the company they have been working for simply because it would mean a pay cut.
I have known contractors to turn down permanent job offers from the company they have been working for simply because it would mean a pay cut.
#7
Re: Permanent position Vs contract position (what's the difference?)
Hi
I work for a government agency where a lot of people in my area are contractors. Given the choise, most would remain on contractor rather than becoming a permanent member of staff. Their rates of pay are far higher than us permanent members of staff but the down side is that they receive pay for only the days that they work. No sick pay, no holiday pay, no public holidays ect. They also pay their own super contributions. For some it works, I guess it just depends on the individual and the contract that they are on.
Me, well I am a permanent member of staff who will never become a millionaire but I receive my pay every fortnight come rain or shine, recession or not. I also get 4% pay increase every year. 6 weeks paid holiday every year, 5 mandatory days off, stood down on full pay between xmas and new year. It certainly suits me being a permanent staff member.
and to cap it off, I really enjoy my job and the people that I work with.
Barney
I work for a government agency where a lot of people in my area are contractors. Given the choise, most would remain on contractor rather than becoming a permanent member of staff. Their rates of pay are far higher than us permanent members of staff but the down side is that they receive pay for only the days that they work. No sick pay, no holiday pay, no public holidays ect. They also pay their own super contributions. For some it works, I guess it just depends on the individual and the contract that they are on.
Me, well I am a permanent member of staff who will never become a millionaire but I receive my pay every fortnight come rain or shine, recession or not. I also get 4% pay increase every year. 6 weeks paid holiday every year, 5 mandatory days off, stood down on full pay between xmas and new year. It certainly suits me being a permanent staff member.
and to cap it off, I really enjoy my job and the people that I work with.
Barney
Last edited by POW148; Mar 31st 2010 at 5:49 pm.
#8
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Joined: Feb 2008
Posts: 187
Re: Permanent position Vs contract position (what's the difference?)
contractors tend to get a higher rate of pay than permanent employees. They get no holiday or sick pay though, so if you dont work a day you dont get paid.
I have known contractors to turn down permanent job offers from the company they have been working for simply because it would mean a pay cut.
I have known contractors to turn down permanent job offers from the company they have been working for simply because it would mean a pay cut.
Last edited by upyerfud; Apr 1st 2010 at 12:16 am.
#9
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Joined: Jan 2009
Posts: 13
Re: Permanent position Vs contract position (what's the difference?)
yeah the place I work is changing Engineering Service Provider and they want us all to move over to a Salary "Permanent" position. Means it's cheaper for them and they get more bobs from the margin between the charge out and our wages.
Would prefer to go contract as paid holidays don't give me enough time off during the year and they really begrudge a bit of unpaid leave! (So do I!)
Main difference is 3 weeks money - salary people get 4 weeks notice to empty their desk, contractors get 1 week. How long would you need to work at premium of 40% to earn that 3 weeks wages?
Would prefer to go contract as paid holidays don't give me enough time off during the year and they really begrudge a bit of unpaid leave! (So do I!)
Main difference is 3 weeks money - salary people get 4 weeks notice to empty their desk, contractors get 1 week. How long would you need to work at premium of 40% to earn that 3 weeks wages?
#10
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Joined: Jul 2008
Posts: 823
Re: Permanent position Vs contract position (what's the difference?)
yeah the place I work is changing Engineering Service Provider and they want us all to move over to a Salary "Permanent" position. Means it's cheaper for them and they get more bobs from the margin between the charge out and our wages.
Would prefer to go contract as paid holidays don't give me enough time off during the year and they really begrudge a bit of unpaid leave! (So do I!)
Main difference is 3 weeks money - salary people get 4 weeks notice to empty their desk, contractors get 1 week. How long would you need to work at premium of 40% to earn that 3 weeks wages?
Would prefer to go contract as paid holidays don't give me enough time off during the year and they really begrudge a bit of unpaid leave! (So do I!)
Main difference is 3 weeks money - salary people get 4 weeks notice to empty their desk, contractors get 1 week. How long would you need to work at premium of 40% to earn that 3 weeks wages?
That's the big difference other than they get paid a lot more
Depends if you like security or not
Also if you want to get a mortgage being a contractor without a lot of work history behind you can be a problem
#11
Re: Permanent position Vs contract position (what's the difference?)
I don't reckon staff gives more security except for maybe government jobs. Job 'security' is an excuse to pay you less.
As a contractor I got a mortgage within weeks of arriving in Australia.
I am a natural born contractor.
#12
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Posts: 2,708
Re: Permanent position Vs contract position (what's the difference?)
Contractors get whatever is stipulated in the contract. 1 week termination is a bit rough. Should have negotiated better.
#13
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Posts: 2,708
Re: Permanent position Vs contract position (what's the difference?)
#14
Re: Permanent position Vs contract position (what's the difference?)
I've got my first interview (with recruitment agent) for an "On-going contract position", whats the main differences between this and a permanent position and what do I need to be asking.
I know it won't included holiday pay, but what about superannuation? and will I need an ABN?
thanks
showdan
I know it won't included holiday pay, but what about superannuation? and will I need an ABN?
thanks
showdan
My first job was advertised as an 'on-going contract' (not through an agency, I made some HR contacts). I started with 3 months, had another 3 months, then 6 months then was made permanent. All the time I had the benefits of annual leave/carers leave and sick leave, super was covered by my employer as if were permanent.
This, I realise, is not what a 'contract' is widely seen to be but that's how it was advertised.
Didn't need an ABN or anything like that.
This is fairly common here, apparently. Employers don't like to commit especially with fly-by-night blow-ins
In short, you need to find out specifics from the agent and assume nothing!
#15
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Joined: Jul 2008
Posts: 823
Re: Permanent position Vs contract position (what's the difference?)
Every contract I have had in Australia has been 1 week. Every contract job I have had in the UK and Australia has been at least 4 weeks notice - if they want us to come back sometime then they need to keep us sweet.
I don't reckon staff gives more security except for maybe government jobs. Job 'security' is an excuse to pay you less.
As a contractor I got a mortgage within weeks of arriving in Australia.
I am a natural born contractor.
I don't reckon staff gives more security except for maybe government jobs. Job 'security' is an excuse to pay you less.
As a contractor I got a mortgage within weeks of arriving in Australia.
I am a natural born contractor.
Thought you worked for same mob as I do?
Contractors on rostered unless you've negotiated a special deal have 1 hour minimum notice, i've seen people last year during the slow down be told to get their things and go just like that
Think it's pretty much the same all over Oz, most of the time they'll give you a week or so as a good will gesture but there's no legal minimum