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Termination of a 1 year contract in 3rd week

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    Termination of a 1 year contract in 3rd week

    Dear All,

    I was recently called for an interview for a 3 month contract (as advertised) and then because they have liked my skills very much and they have taken up a 24 month project, they voluntarily offered me a year long contract to aid me to move to this place from my existing place. I have signed the contract and moved to this place only to get a shock in the 3rd week informing me that the project is downsized and does not have budget so my notice period of 30 days is starting from then. But immediately they have taken their word back and said I am staying, which was ok but it took me through a lot of tension only because I have moved and started renting a place where I have signed a contract for minimum 6 months.

    Now after the 5th week they again said they are terminating contract as the project is now canned and my notice period of 2 weeks starts now. First of all I have signed a contract that had 30 days as notice period so I am not sure how they can change the notice period without my notice. When I spoke to the agency they said, they have recently (only 3-4 days back) sent a letter amending the notice period which neither I have never received at all. But this time also they have taken their words back and asked me to stay in, so I am still working at the same site.

    Now my questions are

    1.) I have not received this new notice period letter yet, so is there anyway my agency can force me to come in to 2 weeks notice period without me signing the document accepting the amended notice period.

    2.) If the agency is behaving cheaky, is there any legal action that I can take as I have never signed to show my acceptance of the new notice period.

    I know that legally the client can terminate the contract anytime within that year giving me a notice period of 30 days, but since I have moved and entered in to rental contract based on this contract, is there anyway I can get my 6 months rental loss recouped from the client.

    Thanks in advance

    #2
    Originally posted by itcontractor07 View Post

    I know that legally the client can terminate the contract anytime within that year giving me a notice period of 30 days, but since I have moved and entered in to rental contract based on this contract, is there anyway I can get my 6 months rental loss recouped from the client.

    Thanks in advance
    Well, I can't comment on your questions, as I don't really know (I'm sure some people here will be able to help you). With regards to your rental agreement, I'm in a similar position, in that I'm working away from home and am renting a place, but I've made sure that I only need to give 1 months notice to terminate the rental agreement, which is the same as my notice period on my contract, mitigating the risk if I'm given my marching orders.
    If at first you don't succeed... skydiving is not for you!

    Comment


      #3
      Originally posted by itcontractor07 View Post
      Now after the 5th week they again said they are terminating contract as the project is now canned and my notice period of 2 weeks starts now. First of all I have signed a contract that had 30 days as notice period so I am not sure how they can change the notice period without my notice. When I spoke to the agency they said, they have recently (only 3-4 days back) sent a letter amending the notice period which neither I have never received at all. But this time also they have taken their words back and asked me to stay in, so I am still working at the same site.


      Now my questions are

      1.) I have not received this new notice period letter yet, so is there anyway my agency can force me to come in to 2 weeks notice period without me signing the document accepting the amended notice period.

      2.) If the agency is behaving cheaky, is there any legal action that I can take as I have never signed to show my acceptance of the new notice period.

      I know that legally the client can terminate the contract anytime within that year giving me a notice period of 30 days, but since I have moved and entered in to rental contract based on this contract, is there anyway I can get my 6 months rental loss recouped from the client.

      Thanks in advance
      So you have now been given notice right?

      The agent can't just change terms in your contract without you signing up to it. It is likely, however, that they don't have to provide you with work for the full 30 days, or even 1 day.

      It might be worth you saying to the agent that you never accepted a notice period of 2 weeks and you want paying for the full month, but legally (depending on what your contract says) there's probably not a lot you can do if they call your bluff.
      And the lord said unto John; "come forth and receive eternal life." But John came fifth and won a toaster.

      Comment


        #4
        Originally posted by itcontractor07 View Post
        I know that legally the client can terminate the contract anytime within that year giving me a notice period of 30 days, but since I have moved and entered in to rental contract based on this contract, is there anyway I can get my 6 months rental loss recouped from the client.
        Thanks in advance
        Almost 100% no w.r.t. getting client (or agent, remember it's them you almost certainly work for, not the end client) to pay your rent.

        Another piece of jolly good news is that your contract, whilst having notice periods mentioned, probably does not stipulate the client must provide work and thus sign your timesheet, presumably a pre-requisite of getting paid.

        So, in a word, sorry to hear you got let down, welcome to contracting!

        Comment


          #5
          Is the client under any obligation to provide you with work?

          Yes -> bad IR35 pointer
          No -> does it matter if 2 weeks, 4 weeks or whatever.

          I do feel really bad for you. As a contractor you get dealt some really bad hands occasionally.

          Comment


            #6
            Can someone please explain to me what it means to have a "30-day notice period" if the client is "not obliged to provide you with work" so actually you won't get paid for any of those 30 days? That looks like even worse than 0 notice, because at any time during the 30 days they could come up with a piece of work and you'd have to do it, even if you had another contract by then.

            Comment


              #7
              Originally posted by TheBigD View Post
              Well, I can't comment on your questions, as I don't really know (I'm sure some people here will be able to help you). With regards to your rental agreement, I'm in a similar position, in that I'm working away from home and am renting a place, but I've made sure that I only need to give 1 months notice to terminate the rental agreement, which is the same as my notice period on my contract, mitigating the risk if I'm given my marching orders.
              I had a similar issue once with regards to notice period. If the cleint tells the agent that the notice period has changed, the agent will send you a letter which you would have had to sign and agree to this change.

              If you agree, then a new contract would be issued refelcting this change. if you don't agree, then they can give you your notice of termination, ie, 30 days.

              Comment


                #8
                Originally posted by expat View Post
                Can someone please explain to me what it means to have a "30-day notice period" if the client is "not obliged to provide you with work" so actually you won't get paid for any of those 30 days? That looks like even worse than 0 notice, because at any time during the 30 days they could come up with a piece of work and you'd have to do it, even if you had another contract by then.
                that's exactly what I said to my agency - apparently I was the first one to really spell out to them that the whole notice period thing was completely one-sided!!!

                my client and agency both completely seem misinterpret the contract to mean the client will have me in to work for the notice period (even though they are not obliged to) - kind of a gentlemen's agreement based on mutual misunderstanding

                please if someone has better ideas how to structure notice periods in an IR35 friendly contract then would love to hear them

                Comment


                  #9
                  Originally posted by itcontractor07 View Post
                  1.) I have not received this new notice period letter yet, so is there anyway my agency can force me to come in to 2 weeks notice period without me signing the document accepting the amended notice period.

                  2.) If the agency is behaving cheaky, is there any legal action that I can take as I have never signed to show my acceptance of the new notice period.
                  1) No. You'd have to agree to it for it to be binding.

                  2) What does your contract say. Your contract may be a 30 day notice period but that doesn't guarantee you work for 30 days. Most contractor contracts state that the client are not obliged to offer you any work.

                  So your contract is terminated in 30 days time but they are not going to offer you any work for the next 30 days = effectivly no notice period.

                  Without sounding harsh you should have thought of this before accepting the contract and renting a place for 6 months.

                  Comment


                    #10
                    Originally posted by expat View Post
                    Can someone please explain to me what it means to have a "30-day notice period" if the client is "not obliged to provide you with work" so actually you won't get paid for any of those 30 days? That looks like even worse than 0 notice, because at any time during the 30 days they could come up with a piece of work and you'd have to do it, even if you had another contract by then.
                    Nope. Not if you use a company such as B&C to do contract reviews.

                    My contract always say "client not obliged to offer any work" & "contractor not obliged to accet any work offered".


                    So effectivly zero notice on both sides.

                    Comment

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