How it works

Whether you are looking to work as a contractor or to hire a temporary employee, the temporary and contract market differs in many respects from permanent recruitment and can require an explanation. Even if you have worked as a contractor before, changes in legal requirements, employment law and payment methods can continually change. We have therefore tried to answer below some of the questions that most frequently arise.

Temporary Assignment or Fixed-Term Contract?

Temporary usually refers to an individual who works on an hourly basis and, for the purposes of payroll, is employed by the recruitment agency. All the administration is dealt with directly by the agency who pays the temp (usually weekly) and invoices the client. Candidates can work on a PAYE basis or may opt to offer their services via a Limited Company of which they are a Director. Typically, a temp's notice period is 1 week, affording flexibility to both parties.

A Contractor, on the other hand, is taken on to a client's payroll directly, for a fixed period of time. The contractor is usually paid on a monthly basis in the same way as if he/she were a permanent employee. His/ her earnings will be expressed as an annual salary. Frequently, contractors are tied in to longer notice periods than 'temporaries'.

Different requirements may be better suited to different arrangements. Typically the 'temporary' model is favoured by both employers and employees as offering maximum flexibility.