5 reasons of people getting afraid of Contractual Jobs

The word contractual job defines itself.  It refers to doing a job on a contract basis. Under this, the employee is required to sign and adhere to the terms stated in the contract before the work is commenced.  This is for a specified period of time and usually ends when the work is completed. This is not like the normal job and hence people are afraid of it. The reasons are as follows:

Liability

As stated in the contract the project needs to be completed as per the specified time in a satisfactory manner otherwise there are lots of legal complications. Hence this tends to put heavy pressure on the employee. In case of non contractual employee, the employee can quit the job if there is unreasonable pressure on him. On the contrary, in case of contractual employee he is bound to perform the duty and the liability is entirely upon him. He cannot quit in between the tenure on the job.

Expenses

It is to be noted that business or travel expenses are mainly borne by the employee in case of contract job because he is not on the payroll of the company. If the hiring agency or employer agrees to pay then the cost can be recovered. Therefore the contracted employee must carefully use the resources and budget it. Therefore the onus of utilizing the resources properly is completely on the employee which is not so in case of the employee who is on the direct payroll of the company.

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Work Hours

In case of contractual jobs, sometimes there is specified time slots which are very rigid. Other workers have a different time schedule. For example, in case of contractual jobs in the field of schools and universities the employee needs to work specified time and also after the school hours. In case of construction, manufacturing companies the deadline is met and what is specified in the contract needs to be completed. In case of shortage of time the contractions employee has to work extra time to get the task done. This involves huge pressure and rigidity which is a disadvantage point in this regard.

Payroll taxes

It is well known that a contractual worker is hired for a specified time and on  a short term basis. The Internal Revenue System  (IRS) allows employers to issue 1099-MISC forms, rather than W-2 forms, to those workers. The employer is benefited by this but the contract worker is required to furnish this income on the tax return.

No fixed employment

In case of contractual employment the employee is not guaranteed  of the job. The job is for a specified period of time and after that there is no certainty which is a big matter of concern. There is no guarantee of employment which puts the employee under tremendous risk.

Hence it can be said that contractual employment is good till a certain extent but cannot be a bread earner for a lifetime. It can only provide employment for a short term basis.