- They provide a business with flexibility, without the administration that is often involved with employees, even those engaged on a short-term basis. Normally you have no PAYE or National Insurance contributions to administer – payments are made without deductions as you would pay any other supplier.
- They are often available on short notice, no waiting around before they can start, and they don’t have the same legal protection as employees, like unfair dismissal, at the end of their employment contract.
- They can provide expertise that a business wouldn’t otherwise have and are generally happy to be engaged for a short-term project. This allows the business and its employees to focus on core products and talents. However, it may not allow your employees to learn new skills, so the key is to balance the short-term need, with long term aims and staff development.
- While day rates for self-employed contractors are usually more than is paid to employees, which may cause resentment amongst staff, they may be cheaper overall than an employee. Contractors don’t get employee benefits like holiday and sick pay, and many work from home so don’t need office space and equipment. In addition, the business doesn’t have to pay employer national insurance contributions.
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