Aren’t employees on fixed-term contracts paid more?
Previous Article Next Article Aren’t employees on fixed-term contracts paid more?On 31 Jul 2001 in Personnel Today Ithought people on fixed-term contracts earned more basic pay than permanentstaff but this is not true in my case. I have argued for a salary increase onthe grounds that the only benefit I receive is annual holiday (and that is at alower rate than permanent staff) and been turned down.VicDaniels, director at Carr-Lyons, writes:Certainlythe clients we deal with factor in benefits and bonus payments and you shouldnot be disadvantaged. Having said this, it is easier to negotiate at the outsetrather than to try to alter your terms halfway through a contract. Depending onthe length of the un-expired term of the contract, you might be better offleaving it on this occasion and learning from the experience. By the sound ofit, your pleas for equal treatment are falling on deaf ears anyway and I am afirm believer of only going into a battle if I know I can win.MargaretMalpas, joint managing director, Malpas Flexible Learning, writes:Ican understand how you feel. I have come across people on fixed term contractswho get more than permanent staff and people who get less. I think the answerlies in what you are providing and how necessary you are to the organisation. Ifyour skills are in short supply then you have more to bargain with. However, ifthe organisation is using fixed-term contracts to increase their resourceswhile keeping its overheads low, I don’t think you have much to work with.Tryto see it from your employer’s point of view and see if you can understandtheir strategy. After this, I think if you really feel it’s unfair, then youmight choose to look for a deal you are happier with. PeterWilford, consultant at Chiumento Consulting Group, writes:Thereis a difference between being a contractor and working on a fixed term contract.Contractors are self-employed and there are strict rules applied by the InlandRevenue governing the definition of self-employment. Being truly self-employeda contractor is responsible for his or her own NI and tax payments and receivesno holiday or sick pay. There are a number of complex criteria to achieve, butessentially the contractor needs to be able to show that he or she worksindependently for a number of organisations. The fact that contractors areself-employed and have to fund pensions, holidays, sickness and any downturn inwork themselves means that they usually receive a higher rate of pay thanemployees.Yoursituation falls somewhere between the two. You should seek some clear guidanceon this from the Inland Revenue in relation to your own position.Ona broader front from your question it is not clear whether pay is the issuehere or whether you are unhappy with your role and work as a whole. You maylike to talk to your personnel department about it in relation to their own specificpolicy for handling contractors’ pay and emoluments. Comments are closed. Related posts:No related photos.