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Diff between Permanent and Contracting Position

vicky kumar
Ranch Hand

Joined: Dec 13, 2002
Posts: 55
Hi,
Can someone throw light on why is Permamnent position safer than a consulting or contracting position ? People keep telling me that it is good that I have a permanent job and I'm much more safe than others. But I don;t know how is it better when it all depends on my employer's whims and needs. He can kick me out anytime when he don't need me and that is as good as any other type of job.
Do I have some legal rights to defend myself in case my employer kicks me off if I have a permament job.
Cheers
Mark Herschberg
Sheriff

Joined: Dec 04, 2000
Posts: 6037
"vicky",
Please look carefully at official naming policy at javaranch & reregister yourself with proper first & last name, with a space between them. Please adhere to official naming policy & help maintain the decorum of the forum. The naming policy can be found at http://www.javaranch.com/name.jsp
--Mark
Tim Holloway
Saloon Keeper

Joined: Jun 25, 2001
Posts: 16012
    
  19

In the town where I live there's a rather bitter joke. Become a temp and get laid off after 18 months or go permanent and get laid off after 2 years.
On a less cynical note, the city's major private employers all gave their contractors ultimatums about 18 months ago. You either went to work directly for them or got your contract dropped. Now I think they're back to contracting, though. I think a major attempt at offshoring bombed.
[ October 08, 2003: Message edited by: Tim Holloway ]

Customer surveys are for companies who didn't pay proper attention to begin with.
Rufus BugleWeed
Ranch Hand

Joined: Feb 22, 2002
Posts: 1551
Perms have a lot more security.
my 2 cents -
In the old days labor formed into unions. The Unions got out of control.
The government passed laws giving workers certain rights. In order to get around those laws management began hiring perma-temps. The government is cracking down on the perma-temp business and now management responds with you can only be a contractor for so many months or years.
When you are a contractor-
You can't sue the end employer for age discrimination, sexual harassment or so many other things. You don't work for them.
You don't get to participate in any profit sharing type deals.
Your contracting company can kick back part of your salary to the employer.
Your contracting company can and will learn things about you that the company wants to know before they hire you. Companies are not legally allowed to discriminate against diabetics, hypertensives, or people on prozac. Contracting company will divulge your medical status for a small fee.
Contractors are held to a double standard. Contractor should be taller, better looking, better politician, smarter and dumber, harder working and a whole lot more.
Contractors make good scape goats. Yeah boss, that contractor screwed that up. I fired him.
Contractors make good cannon fodder. We need to put the fear of god into these people, let's fire some contractors.
Boss man can't fire a direct employee without justifying a case. Boss man is often an arrogant person that believes if they could hire and fire people they could whip this place into shape. They can't fire the directs but contractors are easy marks.
Firing a contractor gives a real power rush and is a trophy to show other employees how important the big boy is.
Almost always a large company refuses to hire an experienced employee without first putting him through a long probation period as a contractor. They expect you to prove yourself. For all the money they are paying, they want miracles.
Managers come and go. The new manager is certain the old manager was an idiot. The new manger is certain the people the old managered hired are mostly losers. The new manager needs to get rid of the old ones and assemble his own team of crack troops. Contractors are very good for this.
Some of the old contractors may know the business better than the new manager. In the act of trying to keep the enterprise on the right track they might point out the new manger's poor judgement. We can't have that.
Often an enterprise has a technology that's going obsolete. The direct employees want to work on the new stuff. They get a contractor to ride the old stuff till it dies and then they don't have to provide an employee with training in a new skill. If they do train up a new person; by rule of thumb, a recent college grad is the best choice.
Management types often hate technophiles. IMO it's an inferiority complex.
It's a temporary employment system. But if you get between contracts or assigments, now every employer gets very skeptical and paranoid.
Direct employees often believe you are a threat to their existence. They will do all sort of things to whack you.
Management will tell direct employees they don't have much money for raises because the contractors are getting so much.
A contractor can take a significant piece of the budget. A manager get's rewarded based on how much budget is left over at the end of the year. By firing a contractor and rehiring a new college grad a manager lines his pocket. When productivity or quality become an issue, the manager becomes a spin doctor.
Contracting is a system created and maintained with management's interested foremost in mind.
 
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