Opinion on Contract Basis Job

[Jay]

Hi everyone.

On last 26th Sept, I attended a job interview for a designer position in my country's rubber promotional council. It is governed by a Board of Trustees appointed by the Minister of Plantation Industries and Commodities.

The interview session was conducted by three panels and it was successful. I was shortlisted and was requested to attend the second round interview, which was held on last 28 October. The interview was conducted by the company's chairman and two board members.

Today I received a call from the company's HR. The company offers me a good amount of salary but $300 less than what I have requested. The catch is the position is contract basis. They didn't state that it was a contract basis job in the vacancy ad as well as during both job interviews.

I've never worked in contract basis. All of my previous jobs were permanent basis.

When the HR uttered Contract Basis, I was a bit discouraged as from what I understood it gives the employer more authority towards the employee.

I was told by my former colleague that under Contract Basis, it means I can't leave the job within one year in any case and if I do want to leave, I have to pay back to the employer. But the employer has the authority to discontinue my service in anytime within the one year contract.

So how should I see this whole thing? What are the pros/cons that I need to consider?

In two ways, I do see two benefits. One is I can perform my surgery after a year contract; by all means I don't need to worry applying for annual leave to perform the surgery. Second, since the company has a reputable name, it can elevate the credibility of my resume.

On a different note, I already sent my 13 page draft of presentation to the motivational speaker. He thinks my history was great and my vulnerabilities can connect well with obese people. Basically I can connect well with them emotionally. The speaker then suggested me to write a book as well. Funny thing is I have already written three chapters about my life last year.

Anyway I was delighted to know that I can help other obese people but everything is still in the early stage.

[Rareboy]

It is all about experience.

I can't advise on whether you should do it...obviously contract work means something very different in Canada than Malaysia...what you describe sounds more like indentured servitude.......the first thing I would do is ask them to clarify the exact terms of Contract Employment by asking to review the contract.

Next I would evaluate whether this position might provide experience and contacts that could help me in my overall career plan. If that is the case and the terms of the contract were suitable, I would definitely consider accepting.

[Bowyn Aerrow]

If your other jobs were permanent, why don't you have them anymore?

That was Rhetorical but I was making a point. Those so called permanent jobs didn't turn out that way.

Contract jobs at least tend to guarantee some sort of time limit (assuming rules are not broken) which give you a better certainty. I don't know what the small print says in this contract, but usually there is some sort of ground rules for contractual jobs. Its not like they can fire you without cause - is it?

Read the fine print, see what conditions/clauses exist for their being able to terminate.

It also helps if you can talk to people who already work there, get a sense of how previous contract workers were treated.

Now I don't know how it works in Malaysia, but often these contract jobs are more about bidding higher than expected for a wage, and hoping negotiations fall closer to what you really were expecting. Which is maybe why they didn't advertise it as a contract job, giving you no time to prepare and get a better understanding of the market and what reasonable pay is expected and how much you should 'over bid' for the negotiations side of salary. Many companies rely on ignorance of these facets in new employees to higher at lower salary.

Rubber - real latex is one of those 'must have' type commodities. Other than Malaysia and a few other Asian countries, the next biggest exporter is Western Africa. Liberia, Sierra Leon, Guinea... if these names sound familiar its because they are in the Ebola Outbreak Crises which is leading to them having serious problems that most likely will lead to shortages of everything they export, including natural latex.

So it may be an auspicious time to get into any commodity that the big importers need that is going to be affected by reduced production in Western Africa. So this company may actually need all hands on deck this coming year to meet the increased demand.

And the experience and the resume read and other things mentioned.

This is a one year contract. One year is not that long.

I don't know if that is good for you or bad for you. Does this job have some reasonable potential to go longer? Is there a re-sign for another year there? Is it possible that this initial year is more of a probationary period, and the next contract will be more to your favor?

If at all possible talk to current employees, find out what they know about how the company treats contractors (you would be a contractor in this case).

Unfortunately different nations work differently when it comes to the concept of what 'contract labor' is all about.

Good to hear you have the motivational speaker thing on a table. I do hope that works out well for you.

Oh and its good to see you too.

[Jay]

Well I know it was rhetorical but I stayed in the last company, which was a real estate company for almost 5 years. I didn't want to leave but the Malaysia's branch had to close down.

The advertising agency. Well, that was a disaster that I should have seen from the first month when the company wasn't able to pay my salary in one lump sum. I should have left on the second month as advised by my former boss from the real estate company. But I needed money and thought the situation was going to change as time goes by. But I was wrong. It was my mistake to chose the ad agency over a bank that was offering higher wage with greater benefits. I got caught with sweet talk given by the boss of the ad agency. Foolish of me. But I've learned my lesson in a very hard way.

The thought of 'Contract Basis' somewhat sounds discouraging to my mind as it feels like they want to hire me but they don't want me to be there. So in a way I feel a little discourage to give all out when I heard, Contract Basis.

Maybe it's just a psychology issue. Probably the term, Contract Basis freaks me out for no apparent reason. Or maybe I am a little scared after what I went through with the ad agency. But the ad agency was supposed to be a permanent job ... so I get your point, Bowyn.

But as advised by everyone, I will read the contract thoroughly and ask necessary questions to the Human Resource before signing the contract.

Thank you everyone. Much appreciated.

[Beaux]

Contract Basis positions are a completely different animal than you may realize. They generally do not offer you insurance through the company but still require you to have it, so you have to pay for it your self. There are a ton of other differences as well that you may or may not realize.

I think the REAL question at this point is, "Can you afford NOT to take the position?" If I were you, and I could afford to wait for a more suitable position to becomes valuable, I would. Jmo.
~Beaux

[TwisttheLeaf]

Second, since the company has a reputable name, it can elevate the credibility of my resume.

This would be the deciding factor for me.

It's a year, yeah? I can withstand damned near anything for a year if the reward is great enough at the end of the term.

So the question is, is it worth it to -you- to put in a year of your life that -might- suck and you're forced to stick it out.... to get the end reward.

[Bowyn Aerrow]

Again I don't know what contracted work is in Malaysia. I have done contract work as a contractor. I know for contractors the contract gives you more legal ground should anything go wrong, and for the client as well.

Contractors in the USA for construction have to cover paying taxes, insurance and all of this other stuff themselves. This is different than having a real job with a company that takes out monies from your paycheck.

http://career-advice.monster.com/job-sea...ticle.aspx Lays out some of how it works in the USA (I assume US).

Will they allow you to take the contract home for a short period of time to look it over? IF so then do so, if needed take it to a solicitor/lawyer someone who works with contracts, corporate/civil law and have them look it over.

With your previous experience of not being paid in a timely fashion, this contract may actually provide you the legal edge of insuring payment.

Without knowing the content of the contract and how corporate contracts work in your country its going to be hard to say if your feelings are valid about how you think they consider you.

If you have something else you can go to that you feel better about, then go with that. If not, this is just a year. The experience, and connection with a big name may give you a leg up.

I don't know how the economy is working there, but here in the USA a person who has a job has a better chance of landing a new job than a person who is currently unemployed. I know that sounds really illogical, but that what is happening.

If this is happening where you are, then around the 9-10 month mark of working there you can start putting out your resumes.

The upside is that serving your contract looks better than being fired or quitting. So at an interview when asked why are you looking for a job now, you can point at the fact that your contract is about to expire.

[ceez]

Hi Jay

I agree with Bowyn, check over the contract and take it home if you can. I know it's probably a little different here in the U.S., but for the company I work for once the contractors contract is up then it usually leads to another contract or a permanent position in the company.