Are employment contracts good or bad?

[mysticgirl]

Just curious to know,
a lot of my friends now work on a contract basis.
How does it work, they say it's easier for your company to "remove" you if you're on contract, and it's bad, so, is that true? anyone knows the other side of the story?

[humorfool]

Just like anything there is good and bad. Yes it is true that a company can more easily remove ou from the company if you are under contract but there are also several good things.

For one, you have certain rights under a contract that most normal employees do not have and you can negotiate these rights or terms at certain times during your employment.

With a contract you also have a guaranteed statement of all the benefits and monies that are due to you. This can come in real handy should you need to bring litigation against the company for any reason.

[cool]

Usually when you work on a 'contract' basis, you're hired to do a particular job for a particular length of time. Many companies avoid paying required benefits or dealing with unions by hiring employees on a contract basis. It's also for companies to 'let you go' when your contract expires.

For example, a lot of Malaysian Airlines employees are hired on a year to year contract, so when they want to downsize, they can wait for the year and just not renew these contracts...

So, yes, people working on a contract basis and not full time basis have lots to worry about their job security.

What I am talking about is a general contract, but humorfool have a point in that for people who are specialized, they can command a higher salary or benefits for their time. For example, you're an actor who can command say $10 million for a contract, or a consultant... that kind of contract is different from a regular employee contract work.

[jesstwnpr]

Agreed -- it can be good and bad. Good for keeping the contract for as long as it lasts. But bad for getting paid better and receiving benefits.

I think most peopel I know who work on contractual basis for larger companies wish that they didnt' and would get hired on full time to receive better pay and better benefits.

Since I work at home now, I work only on contractual bases for companies and I think it's a pretty great set up for me. I probably won't have any long term work from anyone. But at the same time, it frees me up to be a stay home mom too. It's the perfect situation for me.

[brunda]

No. Its not the question of contract. If the person is not worthwhile to the company its better to remove from employer side and better to find a better opportunity to the employee who can fit in some other place according to there ability