No Notice Period from Client, I can't give notice!

[Dwainpipe]

I've been offered a contract that I've turned down following advice from my accountant and IPSE's IR35 advice line. I would what everyone else things of this...

So the contract offered would allow the client to give immediate notice and the Contractor cannot give notice.

My accountant said that the client able to dismiss me immediately is a big IR35 red flag. This was confirmed by the IPSE's IR35 advice line, pointing me at MBF Design Service v HMRC where "the judgement indicates that a right by the employer/end-user to ‘terminate without notice’ is likely to have a significant bearing on the applicability of IR35".

What has really rubbed salt in the wounds is that my Fiance (also a contractor) heard of another contract with a huge Financial Services company that is also has the client being able to give no notice. The agency mentioned that a lot of Financial Service companies are moving to this.

So now not only is the HMRC going after us, but the clients are attacking us too!

[SueEllen]

Clients have always tried to put these terms in contracts.

It has always been up to the contractor to try and negotiate them out, and if they can't to walk away.

Oh and by law, employees can give notice so there must have been other red flags in the contract.

[malvolio]

I've been offered a contract that I've turned down following advice from my accountant and IPSE's IR35 advice line. I would what everyone else things of this...

So the contract offered would allow the client to give immediate notice and the Contractor cannot give notice.

My accountant said that the client able to dismiss me immediately is a big IR35 red flag. This was confirmed by the IPSE's IR35 advice line, pointing me at MBF Design Service v HMRC where "the judgement indicates that a right by the employer/end-user to ‘terminate without notice’ is likely to have a significant bearing on the applicability of IR35".

What has really rubbed salt in the wounds is that my Fiance (also a contractor) heard of another contract with a huge Financial Services company that is also has the client being able to give no notice. The agency mentioned that a lot of Financial Service companies are moving to this.

So now not only is the HMRC going after us, but the clients are attacking us too!

Sorry? Having a clause that you cannot give to an employee makes you liable for IR35? No es comprende...

Sure you've got this the right way round? I've been saying for many years that contractors dniether want nor need notice periods. If nothing else, there will be other clauses the client can use to effect an immediate termination, such as there being no more work.

[Lance]

No Notice Period from Client, I can't give notice!

Sorry? Having a clause that you cannot give to an employee makes you liable for IR35? No es comprende...

I concur. This makes no sense.

Not being able to give notice to client is just a bad contract. No ir35 bearing at all.


No notice period for the client to bin the contractor cannot in any way imply employment. In fact it is clearly NOT employment.

[Lance]

Now I've read the linked article I think the OP either misunderstand or is miscommunicating. The judgement in that link is that no notice period is an indicator of being outside NOT inside.

[MPwannadecentincome]

I have a similar contract I cannot give notice. No problem, if I want to leave I will go to the client and/or agency and say please sack me.

[Platypus]

I have a similar contract I cannot give notice. No problem, if I want to leave I will go to the client and/or agency and say please sack me.

Same here. If I stop turning up and working ("oh dear I'm sick and can't work for 6 months) I think they'll terminate the contract rather than trying to sue me. In my case, though, I do have some extra leverage with my bossette who wouldn't want me spilling any unsavoury beans if ClientCo tried to keep me against my will.

[VillageContractor]

Now I've read the linked article I think the OP either misunderstand or is miscommunicating. The judgement in that link is that no notice period is an indicator of being outside NOT inside.

Agreed - instant notice is an indicator for being outside IR35.

OP who did you contract review?

[MrMarkyMark]

Agreed - instant notice is an indicator for being outside IR35.

OP who did you contract review?

[dmini]

My contract has no notice period from me - been through professional review (B&C) and passed - no issues. The agency I am currently through is the only one in the last 10 years that B&C haven't asked for contract changes.