Contracting.. Does it give you more time off?

[413x]

My main aim is to have more time off work. Even at sacrifice of salary. And I don't know the best way to go about it.

Basically I'm sick of having just 26 days holiday + bank holidays.

I would stay at my job if I could buy holiday. I would absolutely buy it.


But with the state of the economy.. Does that lend to there being more or less contract jobs?


I would only get day rates 1.5x ish my current salary by the looks of it. Which isn't great. But I can't see any other way to get more time back. Unless I can find a unicorn job with loads of days off. Or buy and sell.


In these conditions, would it be crazy to make the jump?

FYI. I have no like or dislike of my job. It's just a job to me.

 

[throwaway4372]

Nothing wrong with the plan, but doing it now is madness, the job market is 100x worse than you imagine.

 

[Jim99]

Not from what I've observed. The contractors that I've worked with have been very anxious about being replaced, and are very wary of giving any impression that they can be replaced.

On paper they can take more time off, but they tend not to.

And in some cases, the company is paying contractors because they just want a problem solved and aren't that interested in the human aspect - so if a contractor keeps asking for time off it's reducing their value to the company.

Admittedly this is all what I've seen in banks, it may be different in other sectors.

 

[413x]

Nothing wrong with the plan, but doing it now is madness, the job market is 100x worse than you imagine.

Its frustrating as this is the first time in my life I'm ready with a financial buffer and skills etc

And if I don't do it next year it's going to be a challenge with mortgage renewal as that's due in 2027.

This damn economy.

On flip side I don't think my job is particularly safe anyway. And I am looking for new perm positions with better perks

 

[413x]

Not from what I've observed. The contractors that I've worked with have been very anxious about being replaced, and are very wary of giving any impression that they can be replaced.

On paper they can take more time off, but they tend not to.

And in some cases, the company is paying contractors because they just want a problem solved and aren't that interested in the human aspect - so if a contractor keeps asking for time off it's reducing their value to the company.

Admittedly this is all what I've seen in banks, it may be different in other sectors.

I was assuming to take time off between contracts more than during.
But yeah I'm aware of the state of the UK economy.

 

[Jim99]

I was assuming to take time off between contracts more than during.
But yeah I'm aware of the state of the UK economy.

Yeah that definitely happens, I worked with a guy who only worked during the winter, typically did 6-9 months each year - which worked because the type of work he did aligned well to 6-9 month change programmes.

The challenge with that plan is really about how confident you can be that you'll find another when you want one. And if you're choosing to walk away from a client that's happy and wants you to stay, they may not be enthusiastic about re-contracting you a couple of months later. So ideally you'd need a number of companies you could bounce between.

 

[Worthy]

Nah they take less time off in general as they don’t get paid when they’re off. I love being on projects with contractors because you know they’ll be in all over Christmas etc as it’s too expensive for them to take the time off.

Most people would like to work less, but contracting isn’t the way to go about it. Obviously you’re free to have as much time off as you like between contracts but then you’re eating into the money you’ve saved whilst working.

If you want more time to yourself, the best way is to invest so you have a passive income to keep you going (lots of money invested in stocks etc that pay dividends, buying houses to rent out etc). I’m in the same boat and that’s what I plan to start doing this year.

 

[413x]

Nah they take less time off in general as they don’t get paid when they’re off. I love being on projects with contractors because you know they’ll be in all over Christmas etc as it’s too expensive for them to take the time off.

Most people would like to work less, but contracting isn’t the way to go about it. Obviously you’re free to have as much time off as you like between contracts but then you’re eating into the money you’ve saved whilst working.

If you want more time to yourself, the best way is to invest so you have a passive income to keep you going (lots of money invested in stocks etc that pay dividends, buying houses to rent out etc). I’m in the same boat and that’s what I plan to start doing this year.

But that's not really going to happen without something like inheritance.
I'm getting older and the time I want is valuable now.

With no kids I'm really trying to figure out if the default "work, mortgage, retire" life is even for me.

I guess I'm just trying to find a way to have more time per year to do things I enjoy. Kind of sick of the 9-5 tedium and looking forward to the limited time off I get.

 

[Worthy]

Welcome to the New Years “**** working all the time” blues

 

[413x]

Welcome to the New Years “**** working all the time” blues

Maybe it's just better if I can find a place to work you can buy holiday

I could easily afford another month off at this salary and all it would impact is my saving.

That would give me 45 days holiday (if company allowed it) and I'd be satisfied.

 

[Brok]

If you have a skillset that's in demand and that aligns well with distinct deliverables then its possible to pick and choose your contracts and have extended time out in between. You make sure you're making enough on your day rate/fixed fees to cover the periods you choose to not work, as well as a buffer for the times you are available but out of contract. You will need to be comfortable saying no to contracts that don't fit your plans to protect your time out.

If you see any risk to your market becoming oversaturated or obsolete, the likely outcome is you will just work solidly and feel obliged to take contracts whenever you can to ensure you have enough buffer in case it all goes south.

Can you ask your current employer about flexible working arrangements? They are obliged to consider it in a reasonable manner.

 

[Jim99]

Maybe it's just better if I can find a place to work you can buy holiday

I could easily afford another month off at this salary and all it would impact is my saving.

That would give me 45 days holiday (if company allowed it) and I'd be satisfied.

My employer allows people to work "annual days" contracts, so you could say work 180 days per year, or whatever. Whether that's made up of some 4 day and some 3 day weeks, or having a quiet month off entirely, is up to you and your direct boss.

Most places I've been at that allow you to buy holiday cap it at 5 or 10, so you'd max out at 30/35 plus bank holidays.

 

[DarrenM343]

My main aim is to have more time off work. Even at sacrifice of salary. And I don't know the best way to go about it.

Basically I'm sick of having just 26 days holiday + bank holidays.

I would stay at my job if I could buy holiday. I would absolutely buy it.


But with the state of the economy.. Does that lend to there being more or less contract jobs?


I would only get day rates 1.5x ish my current salary by the looks of it. Which isn't great. But I can't see any other way to get more time back. Unless I can find a unicorn job with loads of days off. Or buy and sell.


In these conditions, would it be crazy to make the jump?

FYI. I have no like or dislike of my job. It's just a job to me.

I'd say you would be crazy. The contracting market is pretty dead at the moment. Many are switching back to permanent if anything. 1.5x is definitely not good either, especially inside IR35. I used to aim for 3x even outside IR35 but that's not really do-able these days. Contract rates have stagnated
If you really want more time off then you will have to take other risks with going contracting. So, 100% you can have as much time off between contracts as you want but if the market is bad especially you'll spend much of that time off applying for other contracts. You may end up not working for much longer than expected and earning a lot less than your job if unable to line work up for when you want it, especially with the additional fees/NI taken into consideration too.

Also, some companies may want you to work the entire contract without time off, only taking a break before starting an extension if they were to offer one. THis is rare but but can happen if the work is urgent.

Have you tried negotiating with your employer? I know someone who takes 6 months off every 2 years to go travelling . Traded his annual pay rise for it although not sure if still does given inflation has been so high over recent years.

 

[EvilRob]

Might be worth looking at public sector. In NHS for example, leave entitlement increases over time to 33 days per year. Many people do condensed hours, so 37.5 hours over 4 days. Would allow for regular long weekend trips esp if day off is flexible (Friday and Monday off). Moving to part time is also much more accepted. No experience of tech roles specifically within the NHS though.

 

[413x]

If you have a skillset that's in demand and that aligns well with distinct deliverables then its possible to pick and choose your contracts and have extended time out in between. You make sure you're making enough on your day rate/fixed fees to cover the periods you choose to not work, as well as a buffer for the times you are available but out of contract. You will need to be comfortable saying no to contracts that don't fit your plans to protect your time out.

If you see any risk to your market becoming oversaturated or obsolete, the likely outcome is you will just work solidly and feel obliged to take contracts whenever you can to ensure you have enough buffer in case it all goes south.

Can you ask your current employer about flexible working arrangements? They are obliged to consider it in a reasonable manner.

I do think there is risk in over saturation. Mid term I an actually concerned my job is AI vulnerable. I've thought about bailing on IT completely due to what seems like a real threat of automation and having constant stress to keep ahead of it.

I could ask. But to be honest I don't think theyd oblige. Company has been taken over and even carrying holiday over was made "in exceptional circumstances".

 

[413x]

Might be worth looking at public sector. In NHS for example, leave entitlement increases over time to 33 days per year. Many people do condensed hours, so 37.5 hours over 4 days. Would allow for regular long weekend trips esp if day off is flexible (Friday and Monday off). Moving to part time is also much more accepted. No experience of tech roles specifically within the NHS though.

Yeah I have thought about this. Condensed hours would help for sure. If could do 4 day weeks (I would) you'd also only need 4 days of holiday per week off.
Fridays off would be a godsend really. Would make UK camping trips much more feasible

 

[413x]

I'd say you would be crazy. The contracting market is pretty dead at the moment. Many are switching back to permanent if anything. 1.5x is definitely not good either, especially inside IR35. I used to aim for 3x even outside IR35 but that's not really do-able these days. Contract rates have stagnated
If you really want more time off then you will have to take other risks with going contracting. So, 100% you can have as much time off between contracts as you want but if the market is bad especially you'll spend much of that time off applying for other contracts. You may end up not working for much longer than expected and earning a lot less than your job if unable to line work up for when you want it, especially with the additional fees/NI taken into consideration too.

Also, some companies may want you to work the entire contract without time off, only taking a break before starting an extension if they were to offer one. THis is rare but but can happen if the work is urgent.

Have you tried negotiating with your employer? I know someone who takes 6 months off every 2 years to go travelling . Traded his annual pay rise for it although not sure if still does given inflation has been so high over recent years.

Yeah the day rate for my work isn't great. Especially when you consider no holiday pay, no sick leave, no pension match etc etc.
I guess I was wondering if it would pick up if companies need to lay people off due to economic decline. But I guess then those people are then competing for same contracts.

 

[413x]

Life is quite dull at the moment for various reasons, and I'm desperate to make some changes to improve things. It seems ridiculous to earn a decent wage, with low outgoings, but be trapped working more than you need to in terms of days per year.

 

[Kenai]

Yeah I have thought about this. Condensed hours would help for sure. If could do 4 day weeks (I would) you'd also only need 4 days of holiday per week off.

Just be wary of how they'd want to calculate holiday if you did this - if you had 20 days on a 5 day week contract, if you went condensed hours to a 4 day week, some will then want to amend your holiday to 16 days, if they're calculating by day/week rather than by hours - so you'd still only end up with 4 weeks worth of days off in that scenario.

(Made up figures to illustrate the point, before anyone wants to get pedantic about 5.6 week legal minimums )

(Edit - this could also be dependent on how your contract is set up, i.e. is it by days with fixed times or by hours per week etc.)

 

[DarrenM343]

Yeah the day rate for my work isn't great. Especially when you consider no holiday pay, no sick leave, no pension match etc etc.
I guess I was wondering if it would pick up if companies need to lay people off due to economic decline. But I guess then those people are then competing for same contracts.

Historically contracting has always had its peaks and troughs but from what I'm hearing, this time feels different. Even some agents I trust have said the same. IR35 is partly to blame. Will it change someday? Probably,but I can't see it being anytime soon.
Over recent years there has been a movement to go into contracting to earn just a bit more than their permanent job was paying. Rather foolish I thought. This obviously hasn't helped rates either, with a supply of candidates happy to earn just a bit more than their permanent job was paying, not realising longer term their approach would likely be doomed to fail (will earn less due to gaps between contracts, be more stressed etc).

Recruitment consultants may try to sell it to you but some will happily put you on their books as another candidate they can throw at contract openings, and then when you leave your current employer, they'll be straight on the blower to offer to help them find your replacement, for a 20-25% commission of 1 year's salary of your replacement, naturally .