Changing the terms mid contract

[Bagpuss]

My Client has brough in an external contract management company (lets call them manco) who will set up a system to drive down costs and streamline the payment system.

I had just signed a direct contract, but now apparently this will be extinguished and replaced with a contract direct with Manco. For the privilege of using Manco I will have to pay 2.5% of the contract value, approx £2,500 which will help fund their all singing all dancing system and helpp set up a Dutch auction whereby suppliers can bid to undercut me.

I am not being given the opportunity to renegotiate and thus mitigate the charges.


I really think this takes the p1ss and question the legality of the move?

[rhubarb]

Have some rhubarb and don't worry about it.

Rhubarb

[BoredBloke]

What happens if you refuse?

Perhaps its worth taking the reduced margin but looking elsewhere.

[Bagpuss]

The consequences of refusing have not been explained. But my guess is take it or leave it. My Manager is well P1ssed off and has advised me not to sign it

[Swamp Thing]

What were the early termination provisions on your previous contract? E.g. 30 days to either party? If there is something like this, you are rather stuck with it, I'm afraid. Can't comment on the new Manco contract, but sounds like a stinker. Time to look elsewhere?

[Bagpuss]

What were the early termination provisions on your previous contract? E.g. 30 days to either party? If there is something like this, you are rather stuck with it, I'm afraid. Can't comment on the new Manco contract, but sounds like a stinker. Time to look elsewhere?

25 pages long, loads of caveats including refusal of payment after a fairly short period. Silly barstewards left some comments in the word doc between HR and Manco (including "This is legal although not really fair. The clause stays!'.

They had a presentation to sell it to us. Was a nice point in the PP presentation "Increasing supply of scarce resource" apparently by having a dutch auction. Here was me thinking as you moved down the price axis supply decreased, no apparently, a new economic law of Supply and Demand has been discovered.


PS I don't have a notice period in my current direct contract (for IR35 reasons)

[BoredBloke]

If they are changing something as fundamental as the payment terms then I would say that the old contract would be dead in the water. They cannot significantly move the goal posts and still expect the other terms and conditions to hold true. If you do not sign then wouldn't it be a case of them giving you notice and not the other way around.

If you really don't want to play ball with them I'd hold off from signing up and look for something else in the meantime.

[malvolio]

If you don't have a notice period, the contract stands to completion, you can't leave and your client will need to terminate you for some other reason. That rather implies they can't switch you to a new contract without your agreement (which I assume is not forthcoming).

All a bit nightmarish, potentially. Get proper legal advice sharpish before you decide anything - if you're in the PCG, give their legal helpline a bell first, else have a work with people like B&C or Lawspeed.

[Bagpuss]

Thanks Mal, I'm bloody mad about this, need to calm down first and then as you say get legal advice. My feeling is I have agreed to the prior terms and conditions and now they are effectively reducing my rate by asking me to pay for their (supposed) cost cutting system.

[Ardesco]

If you have a legally binding contract with them that doesn't have a notice period I belive the only way to get out of it is to buy you out of your contract.

You could always tell them that they will have to buy you out of your existing contract by giving you money to the value of your existing contract and then you will sign a new one with them, a few months pay for free sounds good!

But as i'm not a lawyer i may be talking tulipe. You'd need legal advice to see how cast iron your contract it and what you can get out of them.