Bank Contractor Conversion Policies Explained | Generated by AI
Question: For major banks (like JPMorgan, Goldman Sachs, Citi, etc.), if you’re working there as a contractor software engineer, do you typically need to take one month of unpaid leave or get your current manager’s approval before you can interview for/convert to a permanent (full-time employee) position?
Answer:
No, that’s not entirely accurate—practices vary by bank and by the specific contracting vendor, but here’s the real landscape at most large US/international banks in 2025:
- Most big banks have a standard “contractor conversion” or “cooling-off” policy, but it is not a blanket “one month unpaid leave” rule in the way many contractors think.
- Common policies (examples from actual employee handbooks and recent contractor experiences):
- JPMorgan Chase: Typically 6–12 months “cooling-off” period if you want to come back as FTE through a different vendor or directly. If the bank wants to hire you directly from your current contract, they often pay a conversion fee to the staffing agency and you can convert with little/no break (sometimes just 1–2 weeks).
- Goldman Sachs: Strict 12-month cooling-off if you leave one vendor and want to join as FTE or another vendor. Direct conversion is possible but expensive for the bank, so they prefer you serve the break (often unpaid or you find a project elsewhere).
- Bank of America: 6 months cooling-off in most cases; direct conversion allowed but rare because of the fee.
- Citi: Varies by region; in the US, often 3–6 months cooling-off unless the bank pays a hefty buy-out fee.
- Morgan Stanley: Similar to Goldman—12 months is common.
- Wells Fargo, Barclays, Deutsche Bank, HSBC: Usually 6–12 months.
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Do you need your current manager’s approval to interview for a perm role?
Almost never required formally. Your contract is with the staffing vendor, not the bank, so the bank’s internal hiring team can interview you without telling your contract manager. In practice, many teams still inform the contract manager out of courtesy (or because they need a reference), but it’s not a hard rule. - The “one month unpaid leave” myth
This is a distorted version of reality. Some contractors are told by their agencies, “If you want to interview, take 30 days off so we’re not billing the bank while you interview.” That’s the agency protecting their revenue, not a bank policy. The bank itself usually doesn’t care as long as you’re not on the clock while interviewing.
Bottom line
At most big banks you can interview for perm roles while still on contract without taking forced leave. If you get the offer, you’ll either:
- Convert directly (bank pays a conversion fee—happens more often than people think if you’re strong), or
- Serve a cooling-off period (3–12 months depending on the bank) before starting as FTE.
It’s negotiable and very team-dependent. The best performers almost always get exceptions or paid conversions.
References:
- JPMorgan contractor conversion discussions (2024–2025) on TeamBlind
- Goldman Sachs 12-month cooling-off confirmation on TeamBlind
- General big-bank contractor policy summary on Fishbowl