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There’s lots of advice on how to become a contractor, scoring your first contract and more. But what happens when your contract ends unexpectedly?
There are many reasons why this could happen, such as your employer downsizing or even going bust. But what are your options when this does happen? The most important thing is don’t panic. Below are a few steps you can take to ensure you aren’t left high and dry.
- First of all, check your contract terms. Make sure your employer is giving you the correct notice period and compensation for terminating your contract.
- Discuss with your client or agency the possibility of further negotiations if appropriate.
- Update your CV and/or portfolio. If a job has ended unexpectedly, the chances are high that your CV isn’t fully up to date. LinkedIn can be a big help in your job hunt – make sure you advertise your availability using the “Open to…” function on the mobile app. You can also set up job alerts on LinkedIn to get daily emails for new positions.
- This follows on from the previous tip. LinkedIn is invaluable for networking opportunities, but so are industry conferences and job fairs. Sign up to newsletters from experts in your industry – they’ll likely share opportunities in their mailouts. And don’t forget about friends and family. If they’re aware you’re on the lookout for your next contract, they may be able to help.
- Make sure you get paid for the work you’ve done. Even if a company has gone bust, they have an obligation to ensure they pay their creditors, which includes you as a service provider.
You’re already aware the world of contracting can be an uncertain one, so it is advisable to ensure that you have multiple projects in the pipeline where possible, so that if one contract does end unexpectedly, you’re not left without income for too long.
That said, a rainy day fund can also help you through any dry spells. Ensuring you put away at least 10% of your earnings in an emergency fund can give you peace of mind – and if you never end up needing it, can be a nice retirement nest egg to supplement your pension.
Money Helper has some great advice if you’re worried about your cash flow between contracts.
In conclusion, unexpected contract endings are a part of the contracting world, but how you respond to them can make all the difference. By taking proactive steps like reviewing your contract, networking, and diversifying your skills, you can navigate these challenges more effectively. Remember, with the right approach, you can turn an unexpected ending into a new beginning for your contracting career.