Have you ever been laid off?

[Elgin Clock]

Ahh the wonders of the working world.

I have also had this happen to me a couple times as of now. While it does, to say the least, "inhale audibly", I see your situation being a bit of a help more than a hinder in your future jobs.

First off, and this is only my opinion, but keep the job as a contractor.
My experience with the working world is although your benefits are up to you to maintain now, the contractor positions offer more pay in the long run.

As for your next year. I see you as having a few choices.

1) Work as a contractor and deny the possibility of a lay off after your year as just a fluke, and as business gets better they may decide to keep you on after that year. (That's kind of a pipe dream as most companies are looking to increase the profits, and cut the costs nowadays and thinking that in a year things will be different is a fools perspective on the situation.)

2) Work your year, knowing that your job is toast in a year and look for work as your time is coming to an end. Don't leave your current job on a bad note (references are key), but make clear to any prospective employers your situation (maybe not the full details, but that you are currently employed and need to give notice to your current employer). I have seen many jobs listed over the past few months (re: year or so) that assure dealing with these issues discreetly.

3) Work your year, and after that's over start looking for a new job. Unemployment will probably pay you, but they (re: your current employer) may fight it and ask you why you didn't look for work that past year when they told you explicitly your job was toast. Bad stuff to deal with. Unemployment claim fights (if they are needed) are never easy.

4) Leave your job and start looking for a new one not having a stable income less your severance for a month.. Depending on your field of work, this could take a week to find a new job, or almost a year or more.. (been there, done that - wasn't fun)

If I had to choose with the information you provided I would stay on as a contractor, and look for another job. The key in being a contractor (unless it is in your contract) is that you can leave at any time, and they can ask you to leave at any time.
If they have asked you to stay a contractor for a year, then not only is that one more year of experience you have but also income which would normally not be there if you left tomorrow.


Oh, and just for my benefit and out of curiosity, what type of work is this?