Job dilemma... I suppose

bear1

Hello all,

I'll stick to the short version of this story and hope it's clear but here goes.
On Monday I was asked for an interview with a recruiter for a job where the pay can be potentially substantial.
I went and passed the first interview and was called up immediately by the client for a follow-up interview.
Yesterday I had the interview and was offered the job an hour later with a net pay which is double to what I'm earning now.
I am currently working on a permanent contract which isn't easy to get.
The new job can only guarantee 4 months as it then depends on their clients if they are happy with the service. If yes then the possibility of a permanent contract becomes likely.
The job would start on the 1st of July which means I'd need to quit now.
Does it sound like it's worth the risk?
Quitting a permanent job for a job where by November I could be unemployed is such a huge risk.
Any advise would be greatly appreciated

averagejoe123

Most new jobs will have a probation period of 6 months anyway so unless you see yourself with your current employers forever its a risk you will have to take at some stage in the future.

Providing the new job is salary based (and not commission) I would jump at this opportunity.

Congrats on the new job....onwards and upwards

bear1

No it isn't commission related as if it was I wouldn't go near as I couldn't sell a beer to an alcoholic
I see your point regarding the probation period and there is no way in hell I want to stay here for the rest of my life.
Main issue is we've applied for a mortgage so I'm skeptical changing jobs while this process is going on.
Others have told me I should go on unpaid leave for 4 months just in case the other contract is prolonged.
Can't see how that would be possible though

blindsider

Bear - a few points:

- sounds like you'll need to consider priorities here - you've applied for a mortgage - is this a big priority? If so, would you be better playing safe for now? Banks are still extremely fussy about handing out mortgages - would a 4 month contract put them off?

- 4 months isn't long - is the company reputable? What about the client? Is it a growth area? IMO you'd need to know what results are required in order to extend the contract. If the contract was extended, would it be on the same pay?

- If you did take the contract and it didn't work what would you do? Would you get another job easily?

TimeToShine

If the pay is double you'll have four months to sort something out if they let you go in November.

It's a call you're gonna have to make sooner or later unless you're happy with your current job and the progression routes it offers you.

bear1

blindsider wrote: »

Bear - a few points:

- sounds like you'll need to consider priorities here - you've applied for a mortgage - is this a big priority? If so, would you be better playing safe for now? Banks are still extremely fussy about handing out mortgages - would a 4 month contract put them off?

- 4 months isn't long - is the company reputable? What about the client? Is it a growth area? IMO you'd need to know what results are required in order to extend the contract. If the contract was extended, would it be on the same pay?

- If you did take the contract and it didn't work what would you do? Would you get another job easily?

Solid questions there.
The mortgage is a priority as we've been saving up for ages and paid the deposit already.
As you said banks are tight enough as it is and I would imagine a 4 month contract wouldn't appeal to them very much.
We have already started the process and all documents from my current job have been provided.
The company deals with electronic payments (think the terminals used in shops etc when paying by card).
They said that if the Irish client is happy with the service then the contract is extended.
Huge risk, could you the best choice I make or the worst.
I've asked them for clarification regarding when would it be known if the client is unhappy and I've asked for a copy of the contract so that I can see what it would look like.

bear1

TimeToShine wrote: »

If the pay is double you'll have four months to sort something out if they let you go in November.

It's a call you're gonna have to make sooner or later unless you're happy with your current job and the progression routes it offers you.

Unfortunately no I'm not happy here and the routes have been exhausted. The only good thing is that it isn't a particularly hard job, stable pay and a secure contract.
Also, I can go on holidays in August if I stay in the current job whereas in the other that isn't possible. Obviously not as important as the other points

Mrs OBumble

TimeToShine wrote: »

If the pay is double you'll have four months to sort something out if they let you go in November.

No you won't - what's not how the tax system works.

You will pay 52% tax (PAYE, PRSI, USC) on income over 35k (maybe modified i bit by your tax-credits situation).

Some made up numbers to help you see what I mean

If with the new job you gross 60k in 2014, then you pay half of the top 25k in tax, as well as what you'd usually pay on the first 35k. That's normal + 12.5k

With the old job, if you gross 40k in 2014, then you only pay 52% tax on 5k of it, as well as what you'd usually pay on the first 35k. That's normal + 2k.



Bottom line:

How likely is it that you could get another job in November if this one falls thru?

How much do you care if the bank declines your mortgage 'cos you quit your permanent job 1/2 way thru the process?

bear1

Mrs OBumble wrote: »

No you won't - what's not how the tax system works.

You will pay 52% tax (PAYE, PRSI, USC) on income over 35k (maybe modified i bit by your tax-credits situation).

Some made up numbers to help you see what I mean

If with the new job you gross 60k in 2014, then you pay half of the top 25k in tax, as well as what you'd usually pay on the first 35k. That's normal + 12.5k

With the old job, if you gross 40k in 2014, then you only pay 52% tax on 5k of it, as well as what you'd usually pay on the first 35k. That's normal + 2k.



Bottom line:

How likely is it that you could get another job in November if this one falls thru?

How much do you care if the bank declines your mortgage 'cos you quit your permanent job 1/2 way thru the process?

The question of how likely to find another job is a tricky one as no one can see how the market will be towards the closing of the year.
I care a lot if the bank declines the mortgage, it's been a real struggle to get this far with them but I'm prepared for the worst and have a back up plan just in case.
I suppose it's a game of heads or tails.
On the one hand I'm leaving a company where in September I'll have 2 years experience with SAP but have no more future prospects within this company and on the other hand I start a new job with fresh thinking and better money but on a bad contract.

Martin567

Mrs OBumble wrote: »

No you won't - what's not how the tax system works.

You will pay 52% tax (PAYE, PRSI, USC) on income over 35k (maybe modified i bit by your tax-credits situation).

Some made up numbers to help you see what I mean

If with the new job you gross 60k in 2014, then you pay half of the top 25k in tax, as well as what you'd usually pay on the first 35k. That's normal + 12.5k

With the old job, if you gross 40k in 2014, then you only pay 52% tax on 5k of it, as well as what you'd usually pay on the first 35k. That's normal + 2k.

In the initial post the OP said that the Net Pay would be double in the new job. If that is true then they will receive 8 months of their current net pay in 4 months and so TimeToShine's point is correct.

cocoman

Have you thought about what might happen if you got the mortgage and then the new job didnt work out. Would you be able to continue paying it? If mortgage is a priority then it might be safer to stay in your current job for another while. You can always keep an eye out for another permanent job.
Good luck with whatever you decide.

bear1

Hi all,

I'll update this now with what has happened since the previous week.
Up on Thursday night I was pretty sure I was going to accept the job and then Friday morning came when we got word from the bank that we have been approved for the mortgage
So it put things into a much clearer picture.
Now I can see that the stability of the job I'm in now has a huge advantage which the other job can't provide for now.
I may be earning twice the amount but what good is to me if in 2/3/4 months I'm unemployed so soon into the mortgage.
So this morning I declined the job offer.
Nice to dream and all that but hey ho at least I can go on holidays now
Thanks to everyone for their advice, it was much appreciated.