Contract positions are those that offer a candidate’s services to a company on a temporary basis. Contracts are usually arranged very quickly and only require one interview.
Regular Contractors who invoice for their time via a Limited Company or Umbrella Company are often referred to as freelancers. They are usually assigned at a fixed hourly rate of pay for a fixed period of time (e.g. 3, 6 or 12 months for example) and are paid monthly, with the amount reflecting the hours signed-off by the candidate’s line manager (on weekly timesheets), multiplied by the agreed hourly rate of pay. Upon completion, a contract will often extend for another period of time if the services are still required.
These roles may be:
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- Urgent;
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- Temporary;
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- Project-based
You would benefit from earning substantially more than a permanent member of staff would on an annual salary basis — sometimes up to 100% more. This is because there is less future job security in a short-term role and because contractors are not generally entitled to company benefits such as training, paid holidays, pension contributions or healthcare.
Assignments are expected to, and almost always do, run for their whole duration. However, there is usually a notice period of around 1 month built into a contract for either party to terminate. Contracts should only be prematurely terminated due to unexpected circumstances or as an absolute last resort. Saying that you have been offered more money elsewhere or that you have simply changed your mind is generally frowned upon and may affect a future employee reference. Because of the short-term nature of contracting, Contractors tend to keep an eye on the marketplace and stay in contact with recruiters as well as previous employers. They rely on their reputations and their contacts to secure a constant stream of work.
Contractors are not employees of the company and are generally required to cover themselves with Professional Liability insurance. Umbrella companies usually include this type of insurance and most Employment Agencies also cover their entire contractor base as an additional security. ProClinical requires that all freelancers are also personally insured.
Umbrella Company or Limited Company?
Opting out of the European Regulations 2003
If you are interested in hearing about contract opportunities within your field, please call us on 0800 988 4437 or register your CV