Pros

• Apart from serving as an interim job while you search for a permanent one, a term-contract job gives you flexibility. You know when your last day is, so you can, say, plan for a holiday in between jobs.

  You can also try out different jobs or industries to gain more experience or to see what kind of work suits you best.

  Related link: » Contract work a growing trend

  There is always a chance of having your job renewed or converted into a permanent one if the economy picks up.

   

• To make up for the lack of, or fewer, perks, some jobs pay 10 per cent more than what a similar permanent post pays.

   

• Term contracts are painless, 'no strings attached' arrangements. Goodbyes after a few months or a year's service are fuss-free and less painful.

Cons

• The biggest drawback is the lack of stability. You are among the first to be let go if the company hits a rough patch. There are no retrenchment benefits.

   

• Compared with permanent staff, you usually get zero, or fewer, benefits, from insurance and medical coverage to annual leave.

   

• The short-term nature of the job makes it hard for you to build a track record or reputation in the industry.
  

This article was first published in The Straits Times.