No contract

[rabbo]

Hi,

I started working for a company 4 weeks ago and still have no physical contract. All the company employees work from home (including me). I am the only contractor and the only IT worker as they fell out with their previous software house and I'm picking up the pieces.

What are the implications of not having a contract, I suppose you could say I or they have no protection, I could stop working without notice and they could drop me with no notice and not pay me. I have been paid for 2 weeks work so far.

The agreement was a 3 months contract to get them up and running with a view to perm or extension, I carried out an inital analysis of the system I am supporting/developing and for this I had a contract that specified I would be paid for the analysis only.

I need a contract with a start and end date, I originally asked for a 7 day termination clause for both parties but they want to specify that the 7 day termination is only valid for me, if I am not working on a project. Since their clients have had their hosting turned off by the previous software company and their clients that host their own system inhouse have little or no working system, every day is a new project for me, so I can't see how this is fair.

The intention was that as soon as I started they recruit someone else to help and cover, which isn't happenning.

The chances are I will stick the 3 months out anyway but it's best to cover yourself, I'm more worried about being paid for when I leave as they want me to go perm. I'm afraid as soon as I say I won't extend they will stop paying. Currently I invoice them but have no timesheet signed (even though I am keeping a record of my hours and what I work on), therefore I will have no proof that they have signed off my work.

I couldn't get the contract before I started as it came along like a landslide, interview on the wednesday, straight into a client on the Monday.

I suppose this is the danger of dealing direct, I have done it once before and the company were great, however this is a small home working based company of which the director has another company and runs this on the side, however there are a lot of pi**ed of clients and a lot of urgency, with just me holding it up!

Sorry to rant, but feels a lot better!

Andy

[DiscoStu]

If you're going direct can't you provide your own contract?

[cojak]

Yeah - get one from the PCG and send it to them.

[nomadd]

Yeah - get one from the PCG and send it to them.

...and in the interim make sure you put everything you do in writing. Email is more than good enough, and getting them to acknowledge the emails is also vital. That way, if you do ever end up in court for unpaid invoices, you have proof of the work you did and their acceptance of what you delivered.

You don't mention how frequently your invoices are turned around at present? If I was in this situation, it would be weekly invoicing with 2-3 days max. allowance for payment. Like you say, you don't want to end up working for free.

Nomadd

[rabbo]

...and in the interim make sure you put everything you do in writing. Email is more than good enough, and getting them to acknowledge the emails is also vital. That way, if you do ever end up in court for unpaid invoices, you have proof of the work you did and their acceptance of what you delivered.

You don't mention how frequently your invoices are turned around at present? If I was in this situation, it would be weekly invoicing with 2-3 days max. allowance for payment. Like you say, you don't want to end up working for free.

Nomadd

Thanks for the replies.

At the moment I invoice once a month with 14 day payment turn around, they wanted it to be 30 but I got them down to 14.

I'm starting to think this isn't enough, I'm going to put something to them in writing.

[BrilloPad]

Seems to be that as you started working there is already a contract in existance. Even if only verbal.

Try to get as much in writing as possible.

Try not to let it go for too long without being paid(Isn't that what all contractors do anyway?).

Be prepared to walk.

Keep looking round for a proper gig.

[vetran]

sell it to them as their protection. Contract will include intellectual property protection for them, NDA ,Currently both IP and some confidential info are yours and they have to prove otherwise, plus recourse if you do something stupid and a notice period.

Did they issue with a purchase order? Can't believe their accounts team would allow them to do it without, in which case you are on their standard T&Cs unless you modified it.

If not they need a full contract more than you, so long as you have something in writing (I believe email is ok) that covers payment.

Mail your contact at the end of the week with a quick report make sure your hours are on the end of it. Ask a question they need to answer.

e.g. this week I did XXXX took me z hours, next week I think we need to do YYYY but to do that I need wwwww information.

They sound like they can't organise a social occasion in a brewery you could be there for years.

AIUI & IANAL etc.

[Paddy]

Legally you have a contract be it unwritten. A contract must have some sort of commitment to make the relationship binding, consideration (payment) and performance, (you doing the work).


If you don’t receive one in witting soon, put one together yourself or at least write to them confirming the unwritten arrangements. Eg: Thank you for taking me (or Ltd Company ) on as a contractor for xx project. I am pleased to accept the rate of £50 per hour etc etc.

[Jeebo72]

I know a contractor who's been working with an airline for 3 years with no contract... not sure you need to worry. Might be pretty good for IR35 too ... who knows ....

[TheFaQQer]

I know a contractor who's been working with an airline for 3 years with no contract... not sure you need to worry. Might be pretty good for IR35 too ... who knows ....

If everything goes right, then there is nothing wrong with not having a written contract.

It's only when problems occur that having a written contract really helps the situation - if the client stops paying you, for example, or repeatedly pays late then having something in writing outlining the terms is obviously better if you needed to argue the case in court.

Whether you have a written contract or not should make no difference for IR35 - Dragonfly established firmly that it is the reality of the working situation rather than the wording of the contract that is important.