Types of UK Employment

Types of UK Employment

What is contracting, permanent and temporary employment?

Contract
You work for an employer through an agency, for a set period of time. i.e. a monthly or three month contract, although most contracts are generally 3-6 months. Contracts are typically extended at least once. Rates can be offered per hour or per day.

There are many great benefits to contracting, particularly if you are coming over on a working holiday as you can usually earn great money then take time out between contracts for trips to Europe.

If you choose to contract you either need to set up your own Limited Company, or source an umbrella company to employee you under their PAYE system. With Limited Company set up, you will be responsible for sorting out your own invoicing and tax, but in many cases you can earn more by reducing your tax responsibilities. With an umbrella company, you still need to complete timesheets, but don’t need to worry about sorting out your tax payments, however these contributions will be higher. You will also receive holiday pay, although many choose to add this on to their contracting rates.

The main industry to offer UK contract jobs is IT. Most contract positions will be offered via an agency. You can check out current opportunities with our IT employment partner

If you’re unsure about contracting, it may be helpful to read this article on why it pays to contract.

Temporary Employment
Usually of a short duration, as and when required, sometimes without a contract. These positions are usually more casual roles such as admin or hospitality. Rates are usually offered per hour. Jobs are usually found via a temp employment agency. By law, temp jobs must now offer holiday pay.

Permanent
Employed fully by the employer. The benefits of permanent UK employment beyond a regular salary are benefits such as pensions, healthcare, and sometimes other benefits such as bonuses. These vary by employer, so it’s best to check with each one.¬†UK companies offer 20-25 days paid holiday leave.

Unless you have other income sources and assets, you will also have all your tax and National Insurance payments taken care of via your employer’s PAYE system.

Note, depending on the industry, permanent positions are not necessarily more stable than contract jobs. This is because in the current political and economic climate since Brexit, many companies are preferring to switch roles to contract positions.

 

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