Freelance IT Engineer: Handling multiple projects – Explanation of advantages, disadvantages, and precautions

Freelance

Are there any benefits to being a freelance engineer and working on multiple projects? I will introduce and explain the points to be careful in this article. When you register as a freelance agent, you may receive requests regarding your employment status. At that time, the registrant will need to choose between contract employee, temporary employee, and freelancer. What are the differences between them?

interview with agent

When you register with a professional freelance agent, you will first have an interview with the agent. This means deciding what kind of work you want, what skills you have, and what kind of work style you want. At that time, registrants will be asked what type of contract they would like to use. Registrants will need to choose between contract employees, temporary employees, and freelancers. Income varies from person to person and varies depending on skills and experience, length of employment, and whether or not you have a side job.

Can you carry it on?

Depending on the contract and work regulations, you can search for multiple positions on the web, regardless of industry or employment type. Unless there are major exceptions, you have a high degree of freedom and can work in a variety of ways and play an active role, so there are many options. Be careful if you are a beginner as you may end up overworking yourself depending on how you start. Basically, make sure to make sure you have some important rest time. The truth is that companies want to secure good, highly skilled human resources.

You can also change your mood

Being able to change your mood is a big plus. You can search for jobs for free. This is ideal because you can build a career with your knowledge and skills. If your desired conditions are not very strict, you can easily get the job done by telling the management company’s sales staff. Check the operating hours and delivery dates to see if you can handle it. Then you can decide whether to acquire it or not. Nowadays, there are many job openings for programming in Java, JavaScript, php, C#, ruby, python, etc. Freelancing allows you to do anything as long as you can manage your life properly.

Differences between contract employees, temporary employees, and freelancers

There are various differences between freelancers, dispatched workers, and contracts, including differences in employment forms, as well as the application of the Labor Standards Act and the scope of individual work. When it comes to registering with a freelance agent, there is little difference between temporary and contract workers. If so, in the case of contract employees, there are many expenses such as transportation expenses, and temporary employees do not. Temporary employees and contract employees are required to join social insurance.

FreelanceTemporary staffcontract employee
rewardPrice minus margin feePrice minus margin fee and social insurance premiumPrice minus margin fee and social insurance premium
Employment statusOutsourcing contractEmployment contract (temporary agency)Employment contract (temporary agency)
Labor Standards ActNot applicableapplicableapplicable
Business scopeBusiness, tax return, paperworkbusiness onlybusiness only
Social insurancenon-memberjoiningjoining
transportation expensesmyselfmyselfcompany

reward

If you are a freelancer, you will receive all the compensation after subtracting the margin fee. On the other hand, they do not participate in social insurance, so they must pay for all national health insurance and pensions themselves. In the case of temporary employees, transportation costs and other expenses will be covered by the actual expenses, but the remuneration will be the amount after margin fees and social insurance premiums are subtracted. In the case of contract employees, transportation expenses are often paid, and in addition to that, margin fees and social insurance premiums are subtracted from the remuneration. Annual income and salary are greatly affected by whether you receive support or not, and by your environment.

Employment status

The form of employment will be an outsourcing contract with an agency company in the case of freelance work, and an employment contract in the case of dispatch or contract work. The Labor Standards Act does not apply to outsourcing contracts, and you will be responsible for man-hour management (time spent on work) and business management yourself. On the other hand, in the case of an employment contract, in many cases the employee will be required to enroll in social insurance. Therefore, it is important to note that the procedures differ depending on the type of work.

Business scope

As for the scope of work, if you are a freelancer, you will do everything yourself, including administrative work, without any support. On the other hand, in the case of dispatch or contract work, all administrative processing will be handled on your behalf. If you have a proven track record and want to improve your skills as a sole proprietor, it is better to aim for a high salary. If you are a freelancer, you can choose to work remotely, such as working remotely several times a week. Those who lack skills are more unstable, have lower pay, and in some cases don’t have insurance.

Social insurance

If you are a freelancer, you will be required to enroll in national health insurance and pension insurance, which you will have to pay for yourself. If you are dispatched or contracted, you will be required to enroll in social insurance, and the agent company will cover half of the cost. Generally, freelancers handle income taxes and other matters themselves. If you exceed a certain amount, you will need to file a tax return.

transportation expenses

Transportation expenses may be paid by the dispatching agency only for contract employees because they belong to an organization. However, if you are dispatched or freelance, you will have to pay for everything yourself. Contract employees have the most extensive welfare benefits.

Where does the command authority lie?

Command and command authority may differ depending on the contract type and the intentions of the site. Therefore, I will speak in general terms here. In the case of freelancers, there is a delegation contract. In the case of contract or temporary employment, this will be stated in the employment contract. The contract clearly states the development content, definitions, allowances, responsibilities, etc.

For freelance

In the case of a freelancer, the requesting company does not have the right to direct, supervise, or order. Freelancers are prohibited from: Giving such instructions to a freelancer is a violation of the law. However, if it is clearly stated in the outsourcing contract in advance, it will be applied without problems.

  • Designation of working hours
  • Designation of work place
  • Designation of how to proceed with work

Temporary employees and contract employees

In the case of dispatch, the dispatched party can freely direct, supervise, and give orders. Due to this difference, there are many cases where freelance work is used for jobs that generate some kind of deliverable, such as engineers and designers, and temporary staff is used for back-office work related to other departments, such as accounting and general affairs.

Differences in tax payment methods

Freelancers do their own tax returns every year. On the other hand, in the case of temporary staffing and contracts, if the staffing company is employed at the time of the year-end tax adjustment, the company may respond. If you want to do everything by yourself, freelance, if you don’t like it, you can choose dispatch or contract.

What to do if a problem occurs

Troubles may arise around contracts. For example, if the remuneration is not according to the contract, for some reason you are forced to work even after the contract period has ended, or even if you want to quit, but the company does not respond to negotiations at all.

Freelance

If you are a freelancer, you will either consult with a freelance agent or consult with the client yourself, but first check what kind of contract you have. From there, you will need to develop countermeasures. If you run into any trouble, we also offer retirement agency services, which are introduced in the article below. Retirement agency services can also be used by freelancers, so there is room for consideration.

Contract employee/temporary employee

Be sure to check your employment contract. If you are dispatched, please consult with the dispatch company. In the case of a contract, you will need to consult with the company you are contracting with. If you run into any trouble, we also offer retirement agency services, which are introduced in the article below. Retirement agency services can be applied for through contract or dispatch.

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