I was recently given notice that I am being made redundant- basically because my employer is losing one of their main clients- and am set to finish working at the end of this week.
I don't have another job lined up as yet, and am thinking that I will probably take a bit of a break at this point, and do some travelling for a couple of months, as I have managed to save enough to make this possible.
However, my boss has previously mentioned that he might have some more work coming in soon, though clearly not enough to keep me on permanently, and asked whether I would consider coming back after I finish to do this work on a contract basis.
In theory, I would consider this- I have enjoyed my time at the company, and get on well with everyone there, and it would be a bit of extra cash while I finalise my travel plans...
How should I go about negotiating my rate to come back as a contractor?
Given that I have been working there on a salaried basis, I would think that they will probably offer me my salary on a pro-rata basis... Would it be sensible for me to try and negotiate a higher rate, given that I am being made redundant, so am losing the 'security' of permanent employment (guess it's actually not all that secure!).
Does anyone have any tips/suggestions for how to negotiate this?
I work in software development- currently for a company whose clients are all within the energy industry.
I don't know about the legalities of this (making someone redundant & then hiring them back), but one of my colleagues who was at the company when I started decided to leave a year or so after I joined, and they paid for him to come back and do some consulting work for a short time after he left. Although it was his decision to leave, and given he'd been there over 8 years (the next longest serving employee had been there about 2 years at this point), there was quite a knowledge gap when he left, particularly as he'd been one of the people responsible for the design and initial implementation of the software we're working on.
I am in the UK.
Many thanks for all the responses- some really helpful information there. I will take some time to digest it all before I mark an answer as accepted.
Some further developments regarding how my boss seems to intend this 'contract' work to be done- he mentioned earlier today that he wants me to come in next week- also asked about the following week, but I now have other commitments that week. He seemed to think he could 'extend' my current (permanent) contract by a week, even though my formal end date is now this Friday. He indicated that he would expect to continue to pay me at the same rate as I have been payed while an employee here, as I would in effect continue to be an employee for that week... He also mentioned that this was convenient for the person he brings in to do the accounts every month, as it would tie in with the payments made to all other employees.
I understand that I am under no obligation to come in next week, as my contract ends on Friday... Is it worth trying to negotiate a 'contract rate' for this week, or just come in at my salaried rate, in order to not jeopardize the relationship?