Contractual changes mid contract

[Yorkie62]

The client co has appointed a specified agency as there sole supplier as of 4th April 2016. I did not contract through this particular agency, but I have been informed by my agency that the client co's preferred agency is taking over payment terms only for my supplied services from the 5th April 2016. However, my agency has informed me that as the preferred agency and client co has imposed "tighter requirements for insurance and record keeping" that my agency has issued me with a completely revised contract. This revised contract goes beyond payment schedules and insurance and record keeping. I am currently getting both contracts (old and new) reviewed against each other so that I understand the implication of the changes in full and the IR35 status of the new contract. The original, and currently contract in force, was outside IR35.

Has anyone had any experience of this, contract changes being imposed mid contract, and how did you handle any changes you were not happy with. I have been contracting for 10+ years and never had this happen before.

[Fred Bloggs]

Yes, it happened to me at a big pharma co. For me, there were no issues, new agency came to site to sort everything out directly with the contractors.

[northernladuk]

Yes, it happened to me at a big pharma co. For me, there were no issues, new agency came to site to sort everything out directly with the contractors.

You weren't swapped out from a small consultancy that had been providing bums on seats for quite awhile were you?

[Fred Bloggs]

You weren't swapped out from a small consultancy that had been providing bums on seats for quite awhile were you?

Nope, it was in Kent and the site had been using a small local agency for a long while. Then corporate HQ decided to enforce a policy where all contractors had to go through one agency. Made sense for the big co, the little agency of course, suffered. They also brought in an 11 month contract limit but when loads of contractors had to leave, they rethought that one.

[expat]

...
Has anyone had any experience of this, contract changes being imposed mid contract, and how did you handle any changes you were not happy with. I have been contracting for 10+ years and never had this happen before.

I told them that I was not prepared to work under the new contract terms. I offered to leave at any time they wanted, including instantly if they preferred. I also offered a handover period of their choice, of up to 1 week under the new terms, or as long as they liked under the old terms. They chose 5 weeks under the old terms.

[squirrel99]

Exactly same situation happened to me a couple of weeks ago when I was almost 5 months in for a 6 months contract.

Honestly, I had a lot of problems with this change - end client/new agency tightened up wording in the contract and told that nothing is negotiable. I spent time liaising with the end client, new agency, and Qdos advisor until very last minute.

My old contract was outside IR35, but certain clauses in the new contract suggested inside IR35. The end client said I can take it or leave it. Qdos said their TLC35 insurance won't cover me if I take it (not a fun situation to be in).

Finally, Qdos advised to get the end client to confirm one of the clauses by email (substitution) - i.e. to keep it as a proof of working practices being outside of IR35 in case of investigation. So I did that.

Very unpleasant experience both with the agency and the end client. Now offered 6 months extension, but not sure what to do.

I guess working practices come before the contract, but I would prefer to have a strong contract to back me up.

[chopper]

I guess working practices come before the contract, but I would prefer to have a strong contract to back me up.

Where it suits HMRC, then the contract will trump your working practices. However, when it suits HMRC your working practices will trump the contract. But then again, when it suits HMRC what the end client's HR business partner on their first day of work experience says to them during an IR35 investigation will trump your working practices and your contract.

[squirrel99]

Where it suits HMRC, then the contract will trump your working practices. However, when it suits HMRC your working practices will trump the contract. But then again, when it suits HMRC what the end client's HR business partner on their first day of work experience says to them during an IR35 investigation will trump your working practices and your contract.

That's true, but how to stay safe then?

I have decided to try and be comfortable as long as TLC35 covers me... do my best to stay outside IR35, keep evidence.