“I got a job offer but it’s only a contractual position. What does that mean?” – Arnold, Mandaluyong

Thanks for the question, Arnold! Our answer is from Lennie Gutierrez, staff development officer of an international organization headquartered in Manila.

A contractual position is a work engagement for an agreed fixed period. This follows the “no work, no pay” principle. This means that it won’t offer you benefits that regular staff employees get, such as vacation leave, sick leave, health insurance, pension, etc. If you miss a day of work, you will not be paid for that.

A contractual position is usually created to respond to short-term needs. Some companies use this to screen and select promising talents. From the company’s perspective, they can get to know your work style and potential, to see if you would be a good fit and asset to them.

There’s an advantage to being a “contractual” — you are not committed to stay with a company beyond your contract period. It would be a good way for you to get to know the company and see if you would like to continue working with them as regular staff. Of course, it will be an opportunity for you to gain experience. As a fresh graduate, you will be able to work in different areas, and see if there is a specific area you want to specialize in.

A consultant has similar terms as a contractual – no leave, medical and other benefits. The difference is that consultants are paid more (even more than regular staff at times) because they have more skills, better expertise and richer experiences.

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