Fixed term contracts - Disadvantages?

Soldato
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Apart from the potential lack of job securit, are there many disadvantages of fixed term contracts over permanent positions?

My wife is looking at getting back to work after a couple of years off to bring up our kids, but a decent chunk of the roles she's found are 12 month fixed term contracts.

The main problem I can see is when it comes to remortgaging (as we will be at some point over the next couple of years) and lenders not treating it the same as a permanent position.

Anything else to be aware of?

Obviously fixed term contract > no job, but I'm not sure how much better permanent is over fixed term contract.
 
Caporegime
Joined
29 Jan 2008
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58,898
I mean if she doesn’t have any better options then…

Perhaps making clear that she’d like them to consider a full time position for her at the end of the 12 months? Get that clear at the start and be proactive about asking for it towards the end.

If both she and the company are on the same page then it reduces the chances for surprises for either party or her being fobbed off if approval for a perm position is being sought in advance by her manager etc…

Obvs the other thing is just to be good at the job so they don’t want to lose her.

Depending on how it’s going or the feedback given then lining up other interviews towards the end is perhaps worthwhile too.

I think mortgage companies often only need 3 months in a role (best check this) so if she does 12 then gets a perm role you still have room for your remortgage within the next 2 years.
 
Man of Honour
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25 Oct 2002
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Hampshire
As a general rule I think FTC are bad because they often offer poor remuneration compared to contracting and poor job security compared to perm roles. It depends on the organisation but often the rates aren't much better than you would get as a perm.

Regarding mortgages, it might be a case where going through a broker could be advantageous.
 
Soldato
Joined
11 Feb 2010
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2,745
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England
If no other options then sure go for it; like you say its all down to job security.

I can understand why some companies are going down the ftc route in the current climate. You'll often find for the right person, they will recruit permanently; so also think of it as a trial

It also goes back to that point, where its usually easier to find a role if already in work so can use it as a starting point
 
Associate
Joined
26 Nov 2006
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401
Location
Leicester
more and more companies are using FTC as a way to fill roles now but with an end date in case the markets and business have future issues arising from covid. Therefore they are not stuck with the additional headcount costs on the books if things go south. If all goes well the companies will probably convert many to perm.
 
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