OK here is the deal. I took a shocking CP contract a couple of months ago out of a combination of necessity and naivity (it is my first UK contract).
I have just been offered another role that will mean 2 hours less travel each day, an opportunity to work for a fantastic company, and a 70% pay increase to boot. However being in a CP contract I am thearetically locked in for the full 6 month term.
The "Right of Reimbursement" section of the contract reads as follows:
"If the company incurs of suffers any costs, expenses, damages or any financial loss or other liability, loss or damage because the contractor breaches any term or condition of this agreement then the contractor shall reimburse the company accordingly. In particular this shall include any claim for breach of contract arising from the contractor not commensing the assignment or terminating the agreement prematurely prior to the expiry of the assignment period and in such circumstances the company shall be entitled to charge an administration fee of £500 to recover administrative costs incurred from such breach. This administrative fee shall be without prejudice to any claim for damages which the company can also claim against the contractor arising from this breach. If the company so chooses, it can set off the amount to be reimbursed by the contractor, in whole or in part, against payments due to the contractor under this agreement. In addition, the contractor hereby agrees to indemnify the company in respect of, any costs, expenses, damages, compensation or any financial loss or other liability suffered or incurred by the company arising out of or in connection with any breach by the contractor and/or the personnel of the terms of this agreement or as a consequence of any act or ommission of the contractor and/or the personnel arising out of or in connection with the supply of the contractor or any of its personnel under the terms of this agreement. Further the personnel hereby indemnifies the company in respect of any sum due from the contractor to the company arising under the terms of this agreement howsoever arising whether under contract or indemnity or otherwise (including any sums owed by the contractor to the company arising under the provisions of this clause 12).
Can anyone make sense of that? Scary parts in bold.
To me it reads like they can name their price, and effectively rob you of any outstanding payments for work completed. I really hope that isn't the case.
My concern is that CP will try and stiff me out of a few weeks of pay if I bail, as they work on a payment cycle that is 2 weeks in arrears (WTF is with that?!).
Note that I also opted out at their insistence (live and learn).
Has anyone bailed on a CP contract before (I'm sure many have), and if so what were the repercussions, if any?
Cheers
EDIT: My apologies, I meant to post this in Accounting/Legal.
I have just been offered another role that will mean 2 hours less travel each day, an opportunity to work for a fantastic company, and a 70% pay increase to boot. However being in a CP contract I am thearetically locked in for the full 6 month term.
The "Right of Reimbursement" section of the contract reads as follows:
"If the company incurs of suffers any costs, expenses, damages or any financial loss or other liability, loss or damage because the contractor breaches any term or condition of this agreement then the contractor shall reimburse the company accordingly. In particular this shall include any claim for breach of contract arising from the contractor not commensing the assignment or terminating the agreement prematurely prior to the expiry of the assignment period and in such circumstances the company shall be entitled to charge an administration fee of £500 to recover administrative costs incurred from such breach. This administrative fee shall be without prejudice to any claim for damages which the company can also claim against the contractor arising from this breach. If the company so chooses, it can set off the amount to be reimbursed by the contractor, in whole or in part, against payments due to the contractor under this agreement. In addition, the contractor hereby agrees to indemnify the company in respect of, any costs, expenses, damages, compensation or any financial loss or other liability suffered or incurred by the company arising out of or in connection with any breach by the contractor and/or the personnel of the terms of this agreement or as a consequence of any act or ommission of the contractor and/or the personnel arising out of or in connection with the supply of the contractor or any of its personnel under the terms of this agreement. Further the personnel hereby indemnifies the company in respect of any sum due from the contractor to the company arising under the terms of this agreement howsoever arising whether under contract or indemnity or otherwise (including any sums owed by the contractor to the company arising under the provisions of this clause 12).
Can anyone make sense of that? Scary parts in bold.
To me it reads like they can name their price, and effectively rob you of any outstanding payments for work completed. I really hope that isn't the case.
My concern is that CP will try and stiff me out of a few weeks of pay if I bail, as they work on a payment cycle that is 2 weeks in arrears (WTF is with that?!).
Note that I also opted out at their insistence (live and learn).
Has anyone bailed on a CP contract before (I'm sure many have), and if so what were the repercussions, if any?
Cheers
EDIT: My apologies, I meant to post this in Accounting/Legal.
). You are the supplier, you are not liable for their consequential losses. They certainly can't put arbitrary values on your work, which is essentially what they're doing here, and you are certainly not liable for their admin costs (whatever that may mean anyway) - that's what their 20% margins are supposed to be for.
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