What are the advantages of being a permanent employee?

In certain industries where there is an option of choosing to be a contractor or a permanent employee (such as the trades industry), it can sometimes be hard to decide which would be the best option for you.

There are pros to both depending on the environment and stage of your life, however if you consider the many different curve balls life might throw at you, choosing to be a permanent full-time employee may be your best choice for your security and peace of mind.

There are several key benefits to becoming a permanent employee.

Sick Leave

Unfortunately, getting sick is invariably part of life.

No one chooses to be sick. You may end up with a simple flu where you need to take a few days off to let your body recover, or worse, a serious injury that may leave you incapacitated for a longer period.

Holiday Leave

It’s great to take time off from work and spend time with family and friends. Budgeting for this time as a contractor can be tricky as it is not just the cost of the holiday itself but your ongoing costs such as the rent or mortgage and other monthly bills that do not stop simply because you are on holiday.

Superannuation

Superannuation is incredibly important as a way to increase your wealth and provide a nest egg in your retirement.

When you are young and earning good cash, it may seem too far away to prioritise putting aside savings from what you are earning week to week. However, the benefits of compound interest are significant and when your employer is contributing at 9.5% of your salary to your super, you can relax knowing that your retirement is taken care of.

Although it might not be considered important now, deciding to get started early will save you having to consider contributing unrealistic annual contributions later on as you play catch up.

As an employee, the responsibility of Super contributions is automatically taken care of by your employer.

Personal Leave

Unfortunately, throughout our lives, there will be times when we will need to take time off work to provide support to those we care about.

Personal leave gives you the option to take time off work without being penalised so you can focus your attention and care where it is needed most.

Public Holidays

As an employee, you are entitled to all Vic public holidays throughout the year, such as the Grand Final, Easter and Christmas holidays. It is time off that you can appreciate being with friends and family without having to worry about losing money for the day.

In most cases, employees either take the day off work without loss of pay or be paid penalty rates for working on such days.

Parental Leave

As a new parent, it is incredibly special to welcome your new child into the world, bond and create a safe space for your newborn, partner and yourself as you navigate such a huge change in your life.

Paid Parental Leave is provided through the Australian government to support you and your family financially while you take the time to adjust to being a new parent.

As a dad, you would receive two full weeks minimum wage to help offset your work income.

Career Development

Many contractors are contractors because they enjoy the flexibility and variety of work they can gain from working with multiple employers in various locations.

However, choosing to work in a larger organisation also allows for progression within the business and a variety of services to increase your experience and knowledge in the roofing industry.

Not Needing to Run Your Own Business

Running your own business can be rewarding but it doesn’t come easy as it requires learning additional skills and overall knowledge of running your own business.

Chasing bills is never fun. Neither is quarterly BAS statements!

Needless to say, all of the above requirements of being self employed as a contractor is not required as an employee. This gives you the opportunity to focus on the job on hand and improve on your skills. Your time at the end of the day is yours to relax and be with your partner, family and friends where you can switch off and enjoy your evenings and weekends.

So, is it better to be an Employee or a Contractor?

It comes down to the individual, their needs and skills.

The security of work, consistency of income and knowing that if life throws some curve balls at you that there is a safety net in place as an employee is an easy decision.