IT contracting - Breach of contract

**cojak** · 3 October 2019, 21:45

What does your contract say about notice periods?

**northernladuk** · 3 October 2019, 22:50

There is no need to go legal. The agent is being arsey and unhelpful because they will lose revenue when you leave. Forget them.

The way out, as in any contractual obligation, is negotiation. Speak to the client first. If you are the wrong person for the job the client won't be overly thrilled either so may welcome a discussion about your exit so they can get who they want and everyone is happy. Even if they think you can do they job they don't want someone on site that isn't commited. Do the professional thing and discuss it.

Work out the best method to exit, which in this case is just quickly. There is no hand over to do and the client won't want to pay for nothing.

Go in fully expecting them to walk you on the spot though. You arent delivering anything so why keep you around.

I guess you are going to read and understand your contract I future. Its kinda part of our title so important. If you do also read the bit about no work and no pay. If they do walk you then you cannot go back and say oi, you owe me some notice period or something. The clause in the contract states no pay without a signed time sheet. They walk you, you don't do any work which equals no pay.

Another thing to bear in mind. If the client agrees to call it there and then after 4 days there is very little chance the agent will pay you. They'll withhold the money and state you are breaching contract, which you are. That doesn't mean they can withhold the money. They must pay you and then sue you. It won't happen don't worry. But you will have a massive bun fight to get your money. In many cases it just won't happen and not worth the fight. Possession is nine tenths the law and all that.

P. S. There is no standard so dunno where you got that assumption from. Read and understand every line in your contract.
HTH

**northernladuk** · 3 October 2019, 23:15

Actually had a think about this and initially I would have ignored the clause but thinking about it further...

How is the role missold? Is the Statement of Work with the contract nothing like the gig? If so then LA are in breach of contract.

First step would be to discuss it with them first. See if you can work it out. I wouldn't be too hopeful. If that fails and it looks like they'll get shirty and try hold you to it I'd take a risk and speak to the client.

I don't believe that penalty is enforceable. They will replace you and make the profit from that person. At the very worst you may have to pay for the week or whatever until you are replaced. It's unlikely they will come after you for they but as I said they will attempt to keep your money which will be more than the penalty. Situations changes and it's probably going to be up to you to get them to pay up. Unlikely that will work unless you get expensive professional advice.

**volatilebear** · 4 October 2019, 07:39

Hi guys, thanks for the responses.

@Cojak - My contract does not have a notice period! I couldn't believe it when I asked the agent. I should have read the contract carefully, a learning curve for sure.

@nothernladuk - I don't want to go legal, its only because the Agent from LA International has said their legal team will be contacting me and looking at the contract it seems they may go after me for 7% of 500pd over 129 days.

I took your advice straight away and called the client first yesterday and explained that the contract was different to my expectations and that its not the right gig for me. He was actually really understanding, I apologised and said I would rather let you know right away so you can get somebody else in rather than wasting your time. I also said I'm more than happy to work any notice period and help out in any way shape or form. I even said to him that I wouldn't charge for the work. After I got off the phone to him thats when the agent started to threaten me saying I cannot leave the contract as there is no notice period and that it would be a breach of contract. I also said the agent that I wouldn't charge. The client actually seemed understanding its just the Agent whos threatening me saying their legal team will contact me.

So to summarise I don't want to go to court and would rather do the right thing by letting the client know and reaching a mutual agreement with the client but now I am concerned if the agent can actually sue me for damages. Like you said they would only find a replacement for me anyway so it seems strange why I would be liable for the whole duration of 6 months.

A friend suggested a cooling off period but I couldn't see one?

Someone suggested I should look at my Professional Indemnity insurance. I checked my policy and it says

"Professional indemnity insurance covers you for compensation you have to pay to your clients or any other third parties as a result of problems with your work. We will pay for claims which are made against you during the period of insurance, up to the limit shown in the policy schedule. We will also pay your legal defence costs incurred with out agreement for covered claims.

We will pay compensation in relation to claims against you for:

Breach of any contract between you and your client, including reasonable compensatory payments, where the claim is brought by your client."

Ideally I wouldn't want any fines and would not charge for the 4 days of work. What do you think will happen? Is this just scare tactics by the agent? Do they have grounds for breach of contract? Am I liable for the entire 6 months agents commission?

Thanks
Mark

**Old Greg** · 4 October 2019, 08:07

Don't seek to terminate the contract, but tell the agency you are taking a two month holiday starting in three weeks' time.

**BlasterBates** · 4 October 2019, 08:16

Unfortunately, legally you're expected to complete the contract. I would stick with it and complete. The trouble is the client won't care and get someone in via a different agency if needs be.

6 months isn't a long time, it'll fly by.

**northernladuk** · 4 October 2019, 08:24

They key thing here is to be tough. It's a hard nosed business situation.

Forget the legal side for a moment. It never goes legal and if it no way would that clause stand up in court.

You've a client supplier relationship and it currently doesn't work for either party so its done. The agent doesn't really have any say. It serves no one but them to make a scene. They work for the client ultimately and the ient doesn't want you. End off.

Just be strong and it will sort itself out. I wouldn't be giving up my cash for it willingly though.

**northernladuk** · 4 October 2019, 08:25

Originally posted by Old Greg View Post

Don't seek to terminate the contract, but tell the agency you are taking a two month holiday starting in three weeks' time.

And Greg has beaten me to it. Agree with the client there is nothing to do and they are happy not to turn up for the rest of the contract, leave and let the contract run out.

No breach. Screw you LA. Sorted.

**Old Greg** · 4 October 2019, 08:45

OP, what is your substitution clause like?

IT contracting - Breach of contract