Contract offer retracted, after signing contract. No notice or payments provided!

[Freedom]

I am a contractor working via my own limited company. I had signed a contract via IT recruitment agency to work for 6 months at a financial firm
for hundreds of pounds/day +VAT. The client company had "retracted" the offer, AFTER getting my signed agreement with the agency in place. They said it is because my Tier 1 visa expires in 5 months, which is 1 month short of the full contract duration. Unofficially I was told they simply decided to hire someone else that had worked for them before.
My visa is 100% extendable. Moreover, since then I have actually applied for extension in Mid-October. In any case, the knew all about my status before signing the contract, or must have known! In fact, I have undergone some of the most stringent security and compliance verification.

My starting date as per contract was on particular day in September but the agency told me not to turn up and wait until they resolve some issues, and on Friday before starting date, I had learnt that the client had “retracted” the offer, despite having the signed contract in place!

I had told the agency immediately that if this is correct, I will require termination notice in writing. They said they WILL send me something in writing. But they never have.

Termination clause (other than breaches on my part): "The company (agency) is required to serve the Service Provider (thats me) 1 week notice to terminate this agreement during the 1st month and 4 weeks thereafter."

The bottom line - It has been more than a month and the agency has NOT provided anything in writing whatsoever, in any shape or form to terminate the agreement in writing. They have not paid me a penny.

Can I sue the agency or the bank for lost income + VAT + lost income due to not applying for other jobs ? Perhaps any other damages available? Do we have a case?

Is there a solicitor who would be able to work on the winnings basis perhaps, or some other affordable avenue to pursue the money? I cannot afford expensive lawyers up front, but will be happy to give them a good share of winnings which amount to a hefty sum!

[craig1]

Unfortunately it's a lesson for you. Until you're in the door with your bum on a seat you should keep looking as aggressively as if you had no offer.

There's another thread on this page with lots of **s in the title, have a read there for the arguments about why you have little of a case. It all revolves around the contract inevitably having a variation of a "if we don't want you, we can get rid with no notice" clause.

[BrilloPad]

If that is your attitude then become a permie.

If you want to remain a contractor then forget it and move on.

[northernladuk]

What is with all the posts about people getting binned and getting upset recently. There must be 3 on the first two pages. Why don't people do a bit of research first?? Do they think they are the only ones that have ever been finished with no notice or something??

[Freedom]

Guys,
Here is some more detail on another page (in addition to termination clause listed above):

5. Termination of the Agreement

5.1 You may terminate the Agreement by giving 4 weeks notice as set out in the Assignment Agreement, although nothing obliges you to accept further Assignments.
5.2 We may terminate the Agreement upon giving no less than 20 working days notice in writing to you.
5.3 We may terminate the Agreement with immediate notice if any Consultant

5.3.1 fails to meet Client security vetting procedures
5.3.2 is convicted of any relevant criminal offence or guilty of dishonesty or gross misconduct or,
5.3.3 is unable to work legally in the uk or,
5.3.4 suspeds the provision of Services without first giving the Client and the Company prior written notice.

5.4 We can also terminate this agreement with immediate effect if the Client terminates the requirements for use of the Provider or of the Consultant owing to what the Client considers to be incompetent, unprofessional performance, unsuitablity or misconduct of a Consultant.
5.5 We can also terminate with immediate effect if the Client ceases trade, becomes insolvent or fails to make payments of our invoices.
5.6 We can terminate with immediate effect if you the Provider ceases trade, become insolvent or breach any material terms of the Agreement or are unable to perform your obligations under this Agreement by reason of force majeure.
5.7 There is no us or the Client to offer the Consultant any work and if offered the Consulant is not obliged to accept. No party wishes to create or imply any mutuality of obligation between any performance of the Services between themselves either in the course of or between any performance of the Srervices or during the notice period. We are not obliged to pay you at any time when no work is available during this assignment.

Please note clause 5.2, it is in plain English. I have received no notice in writing of any kind yet.

They have used specifically the clause 5.3.3. However, I believe it is unlawful because my Tier 1 visa was valid for 5 of the 6 months from the start of contract, and then extendable (currently under extension application already).

Can I sue them ???? Can I claim the notice period money??? This can happen to any one of us, so please understand that there is a vested interest of the community to stand up to such behaviour from agencies!

[psychocandy]

To be honest, if it was me, I'd have a quick go and trying to get the agency to cough up the notice period - you've got nothing to lose. They probably wont pay but I guess you could take them to small claims (although isnt limit £5000) which doesnt cost much.

Might not work if they contest but they might not even bother (or forget).

[malvolio]

What is with all the posts about people getting binned and getting upset recently. There must be 3 on the first two pages. Why don't people do a bit of research first?? Do they think they are the only ones that have ever been finished with no notice or something??

More to do with too many ex-permies not realising that the basic tenet of contracting is that if you do no work, you get no pay. And also not realising that in the greater scheme of things this is a desirable thing. But hey, why should we care...

I wonder how many of them pay their local plumber for not installing that bathroom they quoted for last month...

[keninparis]

I am a contractor working via my own limited company. I had signed a contract via IT recruitment agency to work for 6 months at a financial firm
for hundreds of pounds/day +VAT. The client company had "retracted" the offer, AFTER getting my signed agreement with the agency in place. They said it is because my Tier 1 visa expires in 5 months, which is 1 month short of the full contract duration. Unofficially I was told they simply decided to hire someone else that had worked for them before.
My visa is 100% extendable. Moreover, since then I have actually applied for extension in Mid-October. In any case, the knew all about my status before signing the contract, or must have known! In fact, I have undergone some of the most stringent security and compliance verification.

My starting date as per contract was on particular day in September but the agency told me not to turn up and wait until they resolve some issues, and on Friday before starting date, I had learnt that the client had “retracted” the offer, despite having the signed contract in place!

I had told the agency immediately that if this is correct, I will require termination notice in writing. They said they WILL send me something in writing. But they never have.

Termination clause (other than breaches on my part): "The company (agency) is required to serve the Service Provider (thats me) 1 week notice to terminate this agreement during the 1st month and 4 weeks thereafter."

The bottom line - It has been more than a month and the agency has NOT provided anything in writing whatsoever, in any shape or form to terminate the agreement in writing. They have not paid me a penny.

Can I sue the agency or the bank for lost income + VAT + lost income due to not applying for other jobs ? Perhaps any other damages available? Do we have a case?

Is there a solicitor who would be able to work on the winnings basis perhaps, or some other affordable avenue to pursue the money? I cannot afford expensive lawyers up front, but will be happy to give them a good share of winnings which amount to a hefty sum!

Personally, I only sign contracts if I'm chased.
It's a rough world.
If you want protection go permie.
Good luck with your legal action or save yourself a few quid and get another job.

[cojak]

Of course you can sue them.

Although that's the wrong question. The real question is would it be worth my while sueing them?

The answer to that is probably not.

You probably wouldn't win and if you did it would probably cost you more to go to court than you'd receive in compensation.

You're a contractor now, not a permie.

[stek]

No visa is 100% guaranteed to be extended...