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Moving from Full-Time to Contracting? Any suggestions?

  • Last Updated:
  • Jun 7th, 2021 3:55 pm
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[OP]
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Jul 6, 2010
4 posts
1 upvote
Toronto

Moving from Full-Time to Contracting? Any suggestions?

Hi.
I have been with a company for a few years now, and I was a contactor before making the shift to the full-time position in October 2020.

Now in my life, there are some significant changes that have happened which makes more sense to be a contractor than to stay at full-time, the major reason being the significance difference in pay.

Is it possible for me to ask my company to change me back to a contractor? Is that even a possibility?

Also, how would it reflect on me to ask for me to change back to a contract role after asking to be switched to full time?

I have not done this before, so any suggestions are really appreciated.

Thank you.
2 replies
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Nov 2, 2013
5551 posts
1422 upvotes
Edmonton, AB
- Asking for your company to change you back to contractor, and how it would reflect on you: this is up to your employer. They take much less risk in having you as a contractor vs. an employee, however, you will lose the rights you have as an employee. This is why contractors generally get paid more - to compensate for greater risk.

I have done both over 7.5 years - as both employee and contractor in very similar jobs. Contractors have higher earning potential (especially after considering the extra tax deductions), but much higher risk. In the event of a legal dispute, your employer will try everything in its power to deny you any rights you would have had as an employee. Note that under the law, it's the true nature of the relationship that determines whether you are a contractor/employee, regardless of what a paper agreement says.
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Deal Guru
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Mar 23, 2008
12335 posts
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Edmonton
kakar wrote: Hi.
I have been with a company for a few years now, and I was a contactor before making the shift to the full-time position in October 2020.

Now in my life, there are some significant changes that have happened which makes more sense to be a contractor than to stay at full-time, the major reason being the significance difference in pay.

Is it possible for me to ask my company to change me back to a contractor? Is that even a possibility?

Also, how would it reflect on me to ask for me to change back to a contract role after asking to be switched to full time?

I have not done this before, so any suggestions are really appreciated.

Thank you.
You posted this same question a month ago (almost exactly). But didn't get much feedback on it then, I guess...

All you can do is ask. If I was your manager, I'd probably be rolling my eyes at the mind-changes, but maybe they won't care. The fact that you've been both a contractor and employee may raise some eyebrows at the CRA, though, but that may depend on how you're structured. Are you incorporated? Will you have any other clients? Are you trying to write off many of your expenses?. I would expect you'd be at a high risk of being classified as a PSB, which means many of the "contractor write-offs" wouldn't apply to you.

It would be cleaner for everyone if you'd just step away from this company and find another contract, but that may not be feasible.

C

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