1. Introduction

"Contracting" or "temping" is a term that is recognised and expressed frequently in today's ever-turbulent marketplace. Generally, this term refers to a person who engages in work for a company for a temporary period, whether this is finitely defined, or on-going. Not directly employed by the company, contractors, commonly, are not entitled to the conditions and benefits associated with a permanent contract. So why contract?

Firstly, it is important to recognise and distinguish between two categories of individual who assume contract positions - Those who have to contract - this covers a multitude of circumstances including recent graduates, those on working visas, individuals returning to work after a break, those between permanent positions, those being made redundant, and those who have opted for early retirement. In general, those who are looking for a short-term solution to their employment and/or financial situation, and those who choose to - this faction of the population have made the conscious decision to pursue a career on a contract basis. More often than not, such individuals will have set up, and operate through, a limited company. This is a relatively simple process and can offer a number of financial benefits, as well as the opportunity to manage your own business, in turn offering greater flexibility in career progression and employment decree, through increased independence.