Independent Contracting and time off
- TheTimeLord
- Posts: 12093
- Joined: Fri Jul 26, 2013 2:05 pm
Independent Contracting and time off
I have been working as an independent contractor for a couple of years now. Since I was planning to retire soon I have just been working and really taking no time off besides corporate holidays. Well I decided I needed to start taking some time off before I become a crispy critter, so I asked my customerwhat they would consider a reasonable amount of time for me to be able to take off during a year. First they noted being a contractor there was not set guideline but said they were definitely comfortable with 3 to 5 weeks. Then they added something interesting, they would be open to more as long as it was planned. Well I took that to mean something like 6 to 8 weeks was doable if needed to retain me. This throws my job into sort of a new light, somewhere between full-time and part-time. I have already delayed my retirement and this opportunity sounds like something I should at least investigate. I was wondering if this type of latitude was common for ICs or not? Would you work a couple extra years if you could get 8 weeks (unpaid, of course) a year? Just looking for anyone with experience in a similar situation.
Last edited by TheTimeLord on Fri Aug 07, 2015 8:37 pm, edited 1 time in total.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. |
Run, You Clever Boy! [9085]
Re: Independent Contracting and time off
Do you mean your customer (Not "employer")? Or is this a discussion you had with the company you may work through to serve a customer?TheTimeLord wrote:I have been working as an independent contractor for a couple of years now. Since I was planning to retire soon I have just been working and really taking no time off besides corporate holidays. Well I decided I needed to start taking some time off before I become a crispy critter, so I asked my employer what they would consider a reasonable amount of time for me to be able to take off during a year. First they noted being a contractor there was not set guideline but said they were definitely comfortable with 3 to 5 weeks. Then they added something interesting, they would be open to more as long as it was planned. Well I took that to mean something like 6 to 8 weeks was doable if needed to retain me. This throws my job into sort of a new light, somewhere between full-time and part-time. I have already delayed my retirement and this opportunity sounds like something I should at least investigate. I was wondering if this type of latitude was common for ICs or not? Would you work a couple extra years if you could get 8 weeks (unpaid, of course) a year? Just looking for anyone with experience in a similar situation.
Generally, an IC is an arms length transaction so I assume you mean customer.
Leonard |
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Market Timing: Do you seriously think you can predict the future? What else do the voices tell you? |
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If employees weren't taking jobs with bad 401k's, bad 401k's wouldn't exist.
- TheTimeLord
- Posts: 12093
- Joined: Fri Jul 26, 2013 2:05 pm
Re: Independent Contracting and time off
You are correct it is my client/customer. I guess too many years with a Megacorp.leonard wrote:Do you mean your customer (Not "employer")? Or is this a discussion you had with the company you may work through to serve a customer?TheTimeLord wrote:I have been working as an independent contractor for a couple of years now. Since I was planning to retire soon I have just been working and really taking no time off besides corporate holidays. Well I decided I needed to start taking some time off before I become a crispy critter, so I asked my employer what they would consider a reasonable amount of time for me to be able to take off during a year. First they noted being a contractor there was not set guideline but said they were definitely comfortable with 3 to 5 weeks. Then they added something interesting, they would be open to more as long as it was planned. Well I took that to mean something like 6 to 8 weeks was doable if needed to retain me. This throws my job into sort of a new light, somewhere between full-time and part-time. I have already delayed my retirement and this opportunity sounds like something I should at least investigate. I was wondering if this type of latitude was common for ICs or not? Would you work a couple extra years if you could get 8 weeks (unpaid, of course) a year? Just looking for anyone with experience in a similar situation.
Generally, an IC is an arms length transaction so I assume you mean customer.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. |
Run, You Clever Boy! [9085]
Re: Independent Contracting and time off
I used to semi-regularly take 6-8 week blocks as an independent.... My customers were always cool as long as it fitted into various projects - which I obviously worked around. I got a raised eye brow now and then but a lot of the time they assumed it was other customer projects and I didn't feel the need to correct that and say I wanted a block of time off
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Rob |
Its a dangerous business going out your front door. - J.R.R.Tolkien
Re: Independent Contracting and time off
I have done consulting - though I did it through a consulting company - but similar situation.
Negotiating this with customers can be tricky. Some customers will say what they think they "should" or "supposed to" say, when they don't actually mean it. So, you have experience with them - do you think they really mean it?
Also, the only other thing a I would watch for is "go ahead and take more time off if you plan for it" code for "we like your work but you cost too much" or "we are overrunning our budget". Just things to watch for.
If both those are ok - I think about how you want to structure your work and then negotiate it. Personally, my last couple consulting jobs were part time - specifically because I was interested in making some money but working less. Customers for which I did work were fine with the part time.
So, do you want 8 weeks of vacation. Or work part time and have 6 weeks (or whatever)? Think about the situation you want to create then ask for it.
If you are under a contract - either time based or project based - renewing those contracts is a great time to renegotiate and reset expectations.
One mistake to avoid - DO NOT ask for less just because you want to be part time. You are still delivering at your full capacity for the time you spend - so you should get paid at least the same (maybe it's time for a raise). Many consultants get caught in the mind set that they should "pay" for the flexibility of being part time by reducing their rate. There is no reason to do this.
Negotiating this with customers can be tricky. Some customers will say what they think they "should" or "supposed to" say, when they don't actually mean it. So, you have experience with them - do you think they really mean it?
Also, the only other thing a I would watch for is "go ahead and take more time off if you plan for it" code for "we like your work but you cost too much" or "we are overrunning our budget". Just things to watch for.
If both those are ok - I think about how you want to structure your work and then negotiate it. Personally, my last couple consulting jobs were part time - specifically because I was interested in making some money but working less. Customers for which I did work were fine with the part time.
So, do you want 8 weeks of vacation. Or work part time and have 6 weeks (or whatever)? Think about the situation you want to create then ask for it.
If you are under a contract - either time based or project based - renewing those contracts is a great time to renegotiate and reset expectations.
One mistake to avoid - DO NOT ask for less just because you want to be part time. You are still delivering at your full capacity for the time you spend - so you should get paid at least the same (maybe it's time for a raise). Many consultants get caught in the mind set that they should "pay" for the flexibility of being part time by reducing their rate. There is no reason to do this.
Leonard |
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Market Timing: Do you seriously think you can predict the future? What else do the voices tell you? |
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If employees weren't taking jobs with bad 401k's, bad 401k's wouldn't exist.
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Re: Independent Contracting and time off
A little different situation, but similar. After a year and a half of full retirement I started a limited amount of consulting this January, employed by a small company run by an aquaintance I had worked with (different companies) in the past. The first assignment they asked me about would have been full-time for a year on the other side of the state - I said I wasn't interested. The first task I did take on was a follow-on to a project I had recently supported as a Federal employee before retirement, so it was a natural. The customer was my former agency. I earned just enough over a 5-month period (less than a couple days a week on average) to fund Roth IRAs for me and my spouse for this year.
Later this month I'll start a half-time assignment (lasting less than a year) supporting a facility I had a key role in a little earlier in my career. At first they wanted me to work full time, but I said I wasn't interested - they found another individual for the full-time role, but the customer still wanted my experience, so I agreed to half-time. I know the facility and staff well, so again, a no-brainer. In this case, the customer expects me to work their normal 4-10 work schedule for the days I'm on site, but will let me perform some of the work remotely.
It's nice to be able to pick and choose assignments and to be able to negotiate time commitments. One side outcome, however. Because I'll be working past my 62nd birthday, it looks like I'll delay my SS until later in 2016.
Later this month I'll start a half-time assignment (lasting less than a year) supporting a facility I had a key role in a little earlier in my career. At first they wanted me to work full time, but I said I wasn't interested - they found another individual for the full-time role, but the customer still wanted my experience, so I agreed to half-time. I know the facility and staff well, so again, a no-brainer. In this case, the customer expects me to work their normal 4-10 work schedule for the days I'm on site, but will let me perform some of the work remotely.
It's nice to be able to pick and choose assignments and to be able to negotiate time commitments. One side outcome, however. Because I'll be working past my 62nd birthday, it looks like I'll delay my SS until later in 2016.
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Re: Independent Contracting and time off
I get 6 weeks of vacation time, and it isn't nearly enough.
- TheTimeLord
- Posts: 12093
- Joined: Fri Jul 26, 2013 2:05 pm
Re: Independent Contracting and time off
If you don't mind me asking what do you do with the 6 weeks now?flyingbison wrote:I get 6 weeks of vacation time, and it isn't nearly enough.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. |
Run, You Clever Boy! [9085]
Re: Independent Contracting and time off
We are self-employed with just a few major clients, but we are transitioning to doing our hobbies full time (which we hope will be self-sustaining or make a small profit). We don't want people just yet to think that we are "retired" as they might discount us completely, so what we say when we want to stop doing some of the old work we were known for is that we "need some time to work on personal projects" or that "we need time off to manage some major repairs around the house" etc.
I would think that if your clients expect you to remain "sharp" in your field, saying you are vacationing for two months sounds like you are "slowing down". You might not want to give that impression. Saying you committed to some other projects for a few weeks sounds like you are keeping engaged and sharp. Just a thought.
I would think that if your clients expect you to remain "sharp" in your field, saying you are vacationing for two months sounds like you are "slowing down". You might not want to give that impression. Saying you committed to some other projects for a few weeks sounds like you are keeping engaged and sharp. Just a thought.
Re: Independent Contracting and time off
I take 6-8 weeks a year off and am self-employed.
Extended trips are my normal use of the time although I have also done things of a spiritual retreat nature a few times. I tend to go someplace and try to really get to know it.
Extended trips are my normal use of the time although I have also done things of a spiritual retreat nature a few times. I tend to go someplace and try to really get to know it.
I own the next hot stock- VTSAX
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Re: Independent Contracting and time off
Take days off throughout the year. Rarely more than a week at a time, and usually just a day or two at a time.TheTimeLord wrote:If you don't mind me asking what do you do with the 6 weeks now?flyingbison wrote:I get 6 weeks of vacation time, and it isn't nearly enough.