Navigating the Challenges of Transitioning from Permanent to Contractual Employment

Hi,

I am new to CHR forum. I want to know what are the implications of working as a contractual employee when somebody has already worked as a confirmed employee for about a year. Does it affect your stability question? What if the person has joined an MNC but on a contractual basis? What are the chances of getting absorbed by the company during or after the contractual period? Please help!!

Regards,
Reet

User input: The question is: If working as a contractor (direct or indirect) be such a concern, then why would one want to pose a question and ask for peoples' suggestions while it all seems so decided about not working on contract!!

Now, the reply to your post:

There are loads of benefits working as contractors. You can save a lot of taxes (if planned properly). Contractors can claim a whole lot of things in exemptions from the IT department, which includes conveyance, stationery, etc., which are not privileged to perm employees.

I worked on a contract once after quitting a full-time job. I was happy to make the choice because:

1) The stability concern that many future employers might have expressed is rightly justified when you quote that you worked on a contract of X months/years.

2) The associated firm cannot restrict contractors from having parallel contracts or employments. Hence, I could do my freelance jobs and part-time assignments without worries.

And, IF you are an HR person, you would know that extending contracts or permanent positions is completely based on business requirements and not liabilities or rules of engagement. Hence, the answer to the last part is: "It depends!!"

Ensure there is a single line break between paragraphs.

Hi,

I would like to know whose payroll you are on - are you employed by consultants or the company itself? There are consultants like Adecco, Teamlease, Manpower, etc., who place employees on their payrolls and then deploy them to companies.

Regards,
Derek

Hi,

Thanks for your inputs.

I am currently working with an MNC as a payroll associate in its finance department. However, I am on a consultant's payroll, and this job is on a contractual basis for 6 months. Prior to this role, I worked with a real estate company as an Ex-HR, where I handled core HR functions.

I initially joined this company attracted by its brand name and good salary. However, I am now questioning whether I made the right decision. The transition from HR to Finance has been quite different for me.

I seek your guidance on whether I should quit this job and start fresh, seeking a job in HR exclusively, or if I should continue in my current position considering the brand name and pay.

Please advise.