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Termination Clause - Agency says I have no rights to terminate

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    Termination Clause - Agency says I have no rights to terminate

    Hello All,

    First post here, and a newbie to contracting.
    I have entered 2 months into my 6 months contract via an agency. Due to various reasons, I have decided to terminate the contract early today. Just had a call from the agency saying that "You do know you do not have rights to terminate early from your side, do you?!" To which I disagree. I'm wondering if someone can clarify for me whether the clause below allows me to terminate the contract from my side?

    Within the Schedule, period of contract is 1/12/2014 - 1/06/2015 and that a special condition was mention:
    The client may terminate the contract with one days notice during the first week then it will revert to 1 weeks notice

    This is the only place in the schedule that mentioned anything about notice period, granted that it doesn't state that I can also give notice to the client. However, further down in the contract, under Term and Termination:

    This Agreement shall commence on the date set out in the Schedule and shall continue until completion of the Consultancy Services to the reasonable satisfaction of the Client at which time this Agreement shall expire automatically unless previously terminated by the Employment Business or the Consultancy giving the other party the period of notice specified in the Schedule.

    Am I right in thinking that this allows me to give notice too? As this was the clause that I used in my email to terminate the contract.

    Further to that, I have spoken to the end user (where I work), and the "client", another company that has the contract with the end user, my contract is with the agency and the agency has contract with the "client". Both the client and the end user is happy for me to move on, and the "client" said that they are happy to release me early.
    Given that, does the agency still has any ground to tide me down? Needless to say, I will not be dealing with this agency in the future!

    Many thanks in advance, sorry for the looooooong first thread.

    JC

    #2
    Interesting scenario. I bet you'll be reviewing your next contract letter by letter

    If you need to walk, issue the notice anyway to agent but only do so once you have negotiated an amicable time period for the notice with end client and have been paid most recent invoice.

    I don't know how the rest would play out I.e do you get paid for the rest of your days and have to swallow a loss.

    Comment


      #3
      Nothing that you've shared with us states what your notice period is. There'd normally be something that says that the consultant can end the contract before the stated end date by notifying and giving notice of x. If there's nothing like this then I'd agree with your agent.

      The only options you have are to ask the client to cancel the contract, or as you have an agreement with them that you can move on then just ignore the agent and go with what you've agreed with the client, but don't expect to get any remaining invoices paid and make sure you have everything in writing from the client in the case that the agent starts legal action.

      I hope you also realise that this will likely cause you issues getting another contract, seeing as it's your first and you're bailing so soon into it. Might be worth reconsidering if at all possible.

      Comment


        #4
        Originally posted by jwlchung View Post
        This Agreement shall commence on the date set out in the Schedule and shall continue until completion of the Consultancy Services to the reasonable satisfaction of the Client at which time this Agreement shall expire automatically unless previously terminated by the Employment Business or the Consultancy giving the other party the period of notice specified in the Schedule.

        Am I right in thinking that this allows me to give notice too? As this was the clause that I used in my email to terminate the contract.
        You can give the notice period specified in the schedule. Since there is no notice period specified in the schedule, you cannot give notice to terminate early.

        Originally posted by jwlchung View Post
        Further to that, I have spoken to the end user (where I work), and the "client", another company that has the contract with the end user, my contract is with the agency and the agency has contract with the "client". Both the client and the end user is happy for me to move on, and the "client" said that they are happy to release me early.
        So get the client to give you 7 days notice and leave.

        Originally posted by jwlchung View Post
        Given that, does the agency still has any ground to tide me down? Needless to say, I will not be dealing with this agency in the future!
        Yes, the last thing you want to do is to deal with an agency that sticks by the contract and expects you to do the same
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        Comment


          #5
          Thanks all... I have another contract lined up and I would have thought that since the only mention of notice period in the schedule was 1 week, I too, can give 1 week's notice. Doesn't seem to be the case...
          If worst comes to worst, I think I'll take the advice with going to the client and ask them to terminate me, according to the client, they have a strong working relationship with the agent, so I'm hoping we don't need to go down that route.
          It's a shame whilst I understand we are all in to make business, some would be sneaky enough to set traps for others.

          Comment


            #6
            Wow, in the space of one afternoon we have a contractor that can't be bothered to read and understand their contract and another running a business that didn't bother to engage an accountant.

            Is it something to do with the weather??


            [quote]
            I have entered 2 months into my 6 months contract via an agency. Due to various reasons, I have decided to terminate the contract early today. Just had a call from the agency saying that "You do know you do not have rights to terminate early from your side, do you?!" To which I disagree.[/quote]

            How do you do that when you don't understand your own contract and they do?

            Within the Schedule, period of contract is 1/12/2014 - 1/06/2015 and that a special condition was mention:
            The client may terminate the contract with one days notice during the first week then it will revert to 1 weeks notice

            This is the only place in the schedule that mentioned anything about notice period, granted that it doesn't state that I can also give notice to the client. However, further down in the contract, under Term and Termination:

            This Agreement shall commence on the date set out in the Schedule and shall continue until completion of the Consultancy Services to the reasonable satisfaction of the Client at which time this Agreement shall expire automatically unless previously terminated by the Employment Business or the Consultancy giving the other party the period of notice specified in the Schedule.

            Am I right in thinking that this allows me to give notice too? As this was the clause that I used in my email to terminate the contract.
            How on earth do you come to that conclusion when it doesn't mention you at all?

            Further to that, I have spoken to the end user (where I work), and the "client", another company that has the contract with the end user, my contract is with the agency and the agency has contract with the "client". Both the client and the end user is happy for me to move on, and the "client" said that they are happy to release me early.
            I bet they are!!

            Given that, does the agency still has any ground to tide me down? Needless to say, I will not be dealing with this agency in the future!
            If you are going not deal with agencies that understand their contracts and follow the process that you have both signed up for you are going to find it bloody hard to get any work going forward! I've heard a lot of people complain about a lot of things to do with agencies but complaining about them for following their contracts is a new one
            Last edited by northernladuk; 29 January 2015, 17:06.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Originally posted by jwlchung View Post
              Hello All,

              First post here, and a newbie to contracting.
              I have entered 2 months into my 6 months contract via an agency. Due to various reasons, I have decided to terminate the contract early today. Just had a call from the agency saying that "You do know you do not have rights to terminate early from your side, do you?!" To which I disagree. I'm wondering if someone can clarify for me whether the clause below allows me to terminate the contract from my side?

              Within the Schedule, period of contract is 1/12/2014 - 1/06/2015 and that a special condition was mention:
              The client may terminate the contract with one days notice during the first week then it will revert to 1 weeks notice

              This is the only place in the schedule that mentioned anything about notice period, granted that it doesn't state that I can also give notice to the client. However, further down in the contract, under Term and Termination:

              This Agreement shall commence on the date set out in the Schedule and shall continue until completion of the Consultancy Services to the reasonable satisfaction of the Client at which time this Agreement shall expire automatically unless previously terminated by the Employment Business or the Consultancy giving the other party the period of notice specified in the Schedule.

              Am I right in thinking that this allows me to give notice too? As this was the clause that I used in my email to terminate the contract.

              Further to that, I have spoken to the end user (where I work), and the "client", another company that has the contract with the end user, my contract is with the agency and the agency has contract with the "client". Both the client and the end user is happy for me to move on, and the "client" said that they are happy to release me early.
              Given that, does the agency still has any ground to tide me down? Needless to say, I will not be dealing with this agency in the future!

              Many thanks in advance, sorry for the looooooong first thread.

              JC

              The agency should stick to its guns and not make it easy for you to cop out of your obligations. If you have left the client in the lurch then you should be ashamed of yourself.
              Let us not forget EU open doors immigration benefits IT contractors more than anyone

              Comment


                #8
                It's a classic newbie mistake.

                Either not reading, not understanding, or misreading a contract, and assuming like a permie job contract, that there MUST be a notice period for you.

                Comment


                  #9
                  Originally posted by jmo21 View Post
                  It's a classic newbie mistake.

                  Either not reading, not understanding, or misreading a contract, and assuming like a permie job contract, that there MUST be a notice period for you.
                  You are supposed to be a business providing a service not taking an option on a job
                  Let us not forget EU open doors immigration benefits IT contractors more than anyone

                  Comment


                    #10
                    Any contract can be terminated, you're not a bonded slave. However, the variable is, what is it going to cost you to terminate?

                    If, as you've suggested, the client is happy for you to leave, then just get the notice confirmed in writing from their side, so that contractually you are sorted as there are no comebacks from the agency. The agent might not like it, but at least you're not giving them grounds to refuse to pay you for your last timesheet.

                    Comment

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