Mandatory Holidays

**malvolio** · 29 May 2008, 14:20

Originally posted by Lewis View Post

Hi All,

My end client is insisting all contractors take a mandatory 5 weeks holiday as a cost saving exercise. I have no issue with this as I like holidays

However, the paper I have been given to sign to agree to this is an amendment to a tri-partie contract betweem my ltd company, the agency and the end-client. I refused to sign the tri-partie contract when I started as my IR35 insurers said it was a bad thing IR35-wise. I said I have a contract with the agency which I have signed and I wasn't prepared to sign a three way one, the issue went away.

This time the agency is telling me this is a take it or leave it situation and I must sign or leave. The problem is I haven't signed the original contract in the first place so signing an amendment is a bit weird. Ignoring that if I do sign what are the IR35 implications of a three way contract? What are the IR35 implications of a mandatory leave period?

I have sought professional advice (am awaiting reply) but I respect the posters on this forum so thought I would see what people think. I am thinking the best solution is to get an 'appropriate' ammendment to my agency contract and sign that. But I am not sure I will be able to get out of this three way agreement this time round.

As an aside the end client is a global investment bank. They sold the news as "at least we are not giving you a 10% contract rate cut or terminating your contract which is what our competitors are doing". Seems like the bad times are returning ....

Cheers,
Lewis

You don't have to sign anything, and it's a good idea not to anyway. However you can unilaterally decide to suspend your company's supply of services for the duration as a gesture of good faith. It's OK if you do it, it's not OK if you do it becuase someone is telling you to do ti - D&C is King...

And you have got a contract: whatever was on the table the day you started work is the contract. Not signing it doesn't mean you haven't accepted it.

**PeteB17** · 29 May 2008, 14:25

Lewis - they are having a laugh (not asking you to reduce rate by 10%!!)

Say you are on £400 per day ie: £2000 per week.

This would be £104000 P/A

Making you take a 10% cut would reduce this to £93600 P/A

Making you lose 5 weeks pay out of 52 would reduce this to £94000 P/A

Someone is trying to do some clever accounting...!

**Lewis** · 29 May 2008, 14:28

Originally posted by malvolio View Post

And you have got a contract: whatever was on the table the day you started work is the contract. Not signing it doesn't mean you haven't accepted it.

I signed an agency contract before I started. I didn't sign the three way contract they asked me to sign after about 3 days on site.

**The Lone Gunman** · 29 May 2008, 14:34

Write an email to your agent and client rep to inform them that you need to work on another project for your company and will not be available to them for 5 weeks. Offer a replacement should they need one.

Sorted.

**moorfield** · 29 May 2008, 14:39

Same happening at this client, but I've not heard or seen anything yet, apparently I won't until my next renewal which is 3 months away.

**Bluebird** · 29 May 2008, 14:42

who are the end clients doing this?

HSBC
LTSB
HBOS
NatW
Barclays

??

**Lewis** · 29 May 2008, 14:54

Originally posted by Bluebird View Post

who are the end clients doing this?

HSBC
LTSB
HBOS
NatW
Barclays

??

Let me just say that was an -exceptionally- good list of potential end clients

**Lockhouse** · 29 May 2008, 14:57

This thing normally happens round Xmas time but 5 weeks is a long time - is it one lump or spread out over a certain period. If you think about it - it's equivalent to a > 10% cut in rates anyway.

Can I ask who's the client? Feel free to PM me if you prefer.

**Lewis** · 29 May 2008, 15:01

Originally posted by Lockhouse View Post

This thing normally happens round Xmas time but 5 weeks is a long time - is it one lump or spread out over a certain period. If you think about it - it's equivalent to a > 10% cut in rates anyway.

Can I ask who's the client? Feel free to PM me if you prefer.

It is over the whole year (pro rata for joiners part way through). As I normally take 4-5 weeks anyway it doesn't affect my bottom line. People who don't take holidays will be affected. I am not bothered at all about the holiday just the IR35 implications of this contract amendment they want me to sign.

Mandatory Holidays