How to avoid working as an unofficial full-time employee?

Question

I was proposed the following scenario as a freelancing opportunity:

• Work in their office
• 40 hours / week, M-F
• Using their equipment
• Work on multiple projects, not one ongoing project
• Following their direction; they choose how work is completed
• Length of time, 6 months

This is essentially a full-time job, but with no benefits.

They are asking for an hourly rate, but I am not sure how to propose a fair number or work agreement.

My last gig was very similar to this, but almost worse, and in the end they cut me when the direction I received and implemented wasn't to the liking of their client.

Answer 1

That, as you posted, is a full-time employment position. It doesn't matter what they "call" it. To you, it's a full-time job with no benefits. Do you want a full time job with no benefits? If you want a full time job, don't you think you could get one with benefits?

For me, I wouldn't even contemplate taking it. I'm a freelancer.

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I would not provide an hourly rate. Instead I'd propose a contract......

If someone wants to hire me as a contractor in-house, then a contract needs to be written up where I have as much to say about our business relationship as the client and the contract can't simply be evacuated on a whim. And my fee for such a contract would be steep. It means due to the time involved, I would be unable to work for any other clients. So, a contract which essentially forces me to "put all my eggs in one basket" must provide security due to that risk - in the form of known payment for a given time frame. Nothing would be left "open ended".

Pay or play.. contract for 6 months/40hrs a week. Total contract of $XXXXX payable in weekly installments of $XXXX/24 (24 equal weekly payments, but you could do 12 bi-monthly payments). Payable in full under any circumstances. Meaning, even if they no longer want me to work.. if it's been less than 6 months, they still must pay me for the 6 month contract.

Answer 2

This reads like a relatively standard contractor gig, in the UK it would risk falling under something called 'IR35', which would mean you would pay tax as an employee, so depending on where you live, there may be tax implications of taking a contract on which has you function in a similar way to a regular employee.

If you do it, you would more usually charge a day rate, and it would work out at somewhere from 2 to 4 times what an employee would cost. That is your benefit.

If you want to avoid being treated like an employee, your only options are to push back on the things that are most important to you, and you believe they may have some flexibility on, or look for another contract.