Am I a contractor or permanent

A

Ancalagon

Honorary Master
Joined
Feb 23, 2010
Messages
18,207
Reaction score
3,678
I ask because I am applying for a home loan and want to make sure I provide the most legally correct answer.

Currently, I am on a 12 month fixed term contract for a company, which I will be extending next year, although nothing is signed yet. I might sign another 12 month contract next year, or sign a permanent contract.

I work for them 40 hours a week, and I get paid per month, not per hour. I get paid annual leave and paid sick leave, and this company provides 100% of my monthly income. They pay tax on my behalf etc.

So, the only difference between me and the permanent employees is that they have to sign up for the retirement fund, which I dont. My timesheets are not used to calculate my pay, it is fixed.

Having read about it online, I dont qualify as an independent contractor, obviously neither am I self employed. But am I a contractor or permanent?

Obviously I want to get the best interest rate at the bank, but I also dont want to lie about my status and get into trouble.
 
Tough one - I would hazard at contractor, because you are "contracted" for a period of time. I am no HR whizz so take my opinion with a grain of salt
 
That sounds like a contractor to me. Permanent is when you don't have a fixed term attached to your contract...
 
What do you think the difference in interest rate will be?

I seriously wonder if it is worth my while signing a permanent contract to sort this out.
 
So, where it says type of employment, I would fill in Contract? Any idea what this would do to my interest rate?

If its an issue, I can probably get a signed permanent contract tomorrow. Nothing will change in my employment.
 
Types of employment contracts

Permanent Contracts: This type of contract is issued after an offer has been made in writing to the prospective employee and the offer has been accepted.

Fixed-term Contracts: Also referred to as temporary contracts, these are similar to permanent contracts except that the start and end dates are specified. Where benefits such as pension or medical insurance apply they are detailed in the contract. The contract may also state that no benefits will be paid or claimed should the contract be terminated.

Project Contracts: This type of contract is normally allocated for a set period of time or for as long as the employer needs the employee for a particular project. This type of contract can also be terminated by either party with one month's written notice.
 
Ask the bank which one will get the best interest rate and then select the other as that is what they will end up giving you....
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X