Offered new contract with company which made me redundant...

Offered new contract with company which made me redundant...

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pstruck

Original Poster:

3,518 posts

250 months

Friday 27th January 2012
quotequote all
Last March I was made redundant from the civil engineering consultancy I had been with for four years.

I was out of work for three months, before landing a temporary contract elsewhere. This was initially only four months, then extended until the end of March this year, with a possible further extension until the autumn, although this is as yet not definate.

I have now been approached by my old company, who say they need me to come back on a 12 months contract to help them out with high workload. I am now confused as to what to do for the best!

During the last year or so in my old job I was stressed and not enjoying it at all. The work I am now in is far more relaxed and enjoyable, but the possible contract extension through until November has not yet been confirmed, and might not be for a month or two yet. I have an eight week old baby at home and a mortgage to pay, so I must protect my income, but I am not totally comfortable going back to the old firm.

What would you do?

Hugo a Gogo

23,378 posts

234 months

Friday 27th January 2012
quotequote all
I'd be careful with your tax position there

if you got redundancy payment from that same company only 12 months ago, you could get stung for income tax on that payment

mike325112

1,070 posts

185 months

Friday 27th January 2012
quotequote all
High workload - what part of civils are you in? I work for a large consultancy and woakload is up and down rather than consistent.

Its all well and good saying a 12 month contract but they could let you go before the end of the contract though surely - dependant on you're terms of notice?


hornetrider

63,161 posts

206 months

Friday 27th January 2012
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pstruck said:
What would you do?
As it's the end of January now, and your contract is up in March, it is over the next few weeks that you would be discussing renewal with your current client anyway. So - broach the subject with them, perhaps let them know there is another offer on the table but you would prefer to stay, wax lyrical about them etc. If they were looking to extend you that should get a PO on the way.

thegreengoblet

1,040 posts

217 months

Friday 27th January 2012
quotequote all
For me, it comes down to locality first (as I also have a young family), followed by duration, and then rate. Obviously there is some clouding between these if it's not clear cut. Contract work is work at the end of the day but without the politics you get from a permy position. So maybe your old firm won't be as bad as before. Even the fact that you are considering it tells me that you could deal with it. Remember, you only have to do what you are contracted to do, and no more. There also sounds like some deals to be done. Can you get an inflated rate from your old employer if you go back? Can you get your new client to commit to a longer extension and/or rate increase? When you have a choice, you're in command. Get all the info onto the table and make your choice.

pstruck

Original Poster:

3,518 posts

250 months

Friday 27th January 2012
quotequote all
Interesting regarding the redundancy payment and income tax... I'd not considered that!

As suggested, I will use this opportunity to put some pressure on my current employer to extend my contract, which I gather he would like to do, but has his hands tied to some degree by uncertain budget for next year. I think this would be my favoured outcome. However, the old firm did seem rather keen to get me back, so yes, there is an opportunity there to negotiate rates.

The sustainability of the workload worries me a bit, as from expereince in the sector there is indeed a lot of fluctuation. I would expect that initially there would be plenty of work, with public sector client spending what's left of their budget. After that, well it depends if they have already secured some decent workload. I need to find out more.


thegreengoblet

1,040 posts

217 months

Friday 27th January 2012
quotequote all
I'm in a slightly different sector, but I had the same reservations regarding workload. That was 15 years ago and I've always been local and never out of work, not even for a 1 day.