Working without employment status.
WHAT IT MEANS
You provide services under a contract, rather than being employed.
WHAT YOU GAIN
Flexibility Potentially higher rates Several clients
WHAT YOU LOSE
Paid leave Sick pay Employer pension contributions Notice protections Income stability
WHAT TO PRICE IN
All of the above.
WHY
A contractor rate equal to an employee salary is a substantial pay cut.
WHAT TO ADD
Unpaid time: leave, illness, gaps between clients
Your own contributions and insurance Administration time
WHAT A ROUGH APPROACH IS
Calculate the annual income you need, divide by realistically billable days.
WHAT REALISTICALLY BILLABLE MEANS
Far fewer than the calendar suggests.
WHAT TO AGREE IN WRITING
Scope Rate and basis Payment terms Who owns the work Confidentiality Notice What happens on scope change
WHY SCOPE CHANGE MATTERS MOST
It is where disputes occur.
WHAT TO DO ABOUT CHANGES
Agree them in writing before doing the work.
WHAT TO ESTABLISH ABOUT PAYMENT
When, and what happens if late.
WHAT TO DO ABOUT LATE PAYMENT
Follow up promptly, in writing.
WHAT TO NEVER DO
Continue working while unpaid, indefinitely.
