Leaving employer - asked to become IC

I'm leaving my current employer to move out of state. The place has really enjoyed my time there and have asked if I would be interested in providing remote support (being considered an independent contractor), but only during the transition period until they fill my position, maybe 60 days? I don't see it going into next year. I have never been approached with this sort of situation and was wondering if others have and what things to keep in mind if I accept. Obviously, I need to consider taxes where I will be living and ensuring those are paid. We had a short meeting today and it was agreed that a contract defining duties, compensation, availability, etc., would be needed. A 30% wage increase was offered to make up for the loss of benefits and covering taxes. I would be using my own computer equipment except a company cell phone. They really just want some help during the process since it is only a 2-man IT dept. They've been a great place to work and it's only for a very short time. I've done some reading but most of it was for long term gigs and this just seems more like a smaller request, I just don't want to get into something I regret later. Any insight? Thanks.

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Comments

yoba222

For part time, could be a sweet deal. Might also turn into support for 2 years, which might even continue to be a sweet deal. No experience being in this situation myself, though I know of some contractors for some of our clients in this situation and they aren't complaining.

Neil86

I think it would be a sweet deal too. I just tend to err on the side of caution due to legalities and liabilities. Thanks

thomas_

I would only do support after hours of what your work hours are going to be at your next job, so you don’t run into any conflicts.

I’f be leery about doing too much work for them without before I got paid as you might run into a situation where they might let you do the work, but then stiff you on the payment. If they do that, then the only way to get it is to sue them which costs time and money. Even if you win they might still not pay, so you would have to jump through more hoops to get your money.

Finally, you might want to get some type of professional liabilty/errors and omissions insurance. Ideally, you would have a contract with them that you have reviewed by an attorney before signing it.

EANx

Having been there, done that, I recommend two things: 1) Operate off a retainer. Have as large or small a number as you are comfortable with but retainers are common in other professional industries, there's nothing wrong with them here. Personally, I'd start with 40 hrs and nothing less than 20. 2) Look into professional liability insurance. When you're an employee, the worst that can happen if you make a mistake is getting fired but as a consultant, you really should be familiar with terms like "interruption of business".

sephiroth66

You may also want to consider any conflict of interest this may impose if you are heading for a new career. Otherwise just echoing everyone else about having a good clear cut contract. Sounds like they just needs some help in the interim though so you may be fine. Of course , better to be safe than sorry.

Johnhe0414

EANx said:

Having been there, done that, I recommend two things: 1) Operate off a retainer. Have as large or small a number as you are comfortable with but retainers are common in other professional industries, there's nothing wrong with them here. Personally, I'd start with 40 hrs and nothing less than 20. 2) Look into professional liability insurance. When you're an employee, the worst that can happen if you make a mistake is getting fired but as a consultant, you really should be familiar with terms like "interruption of business".

This - -

When in worked with our contractor our organization bought a block of time (usually 40 hours). I also agree with liability insurance or being bonded, i had a friend almost learn the hard way.

the_Grinch

I would throughly review any documents that would require you to sign. I once had an offer like this from a company I worked for (there were some issues as I left) and at first it sounded great. As I dug into the paperwork it seemed more and more like a non-compete then a contract for work. I wasn't going to a competitor or to a company they supported, but at the same time one never knows what offers might crop up when you leave somewhere (in my case it was an MSP and some clients preferred working with one tech).

Sometime ago, on this forum, there was a post that basically said "once you're ready to leave just leave". While this was in regards to counter offers, I believe it to qualify in this situation as well. At most I've told companies I would give them two weeks to call me with questions, but after that there would be a charge or no info. I get this company has been good and you'd like to help, but at the end of the day they will worry about themselves and you should do the same. What happens when you get a job and can't help them anymore?

Neil86

Thanks for the great feedback. I was somewhat leery at first but the organization and I have a great relationship and they really just want some help while they take time to find a quality replacement. We finalized a contract defining the scope of everything and I am happy with the result. I've never worked remote before but I'm looking forward to it.