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kwrightMTC
27th June 2012, 12:54
Hi all,

Forum n00b here so my apologies if I'm posting in the wrong section.

I'm a Design Draughtsperson operating in the construction industry and I started a contract position in North Wales approximately 18 months ago.

As I was agency placed, my initial 3 months were on an agency contract. After that time had elapsed I agreed on a 6 month contract direct to the client. When this contract expired the work continued but I was never issued a renewed contract. Despite chasing for one frequently it never materialised. Now I'm still here, having worked the last 9 months without a contract renewal (I should mention that I am site based).

In recent months my client has hit major cash flow problems and as a result I have had several invoices paid late. This position often requires that I work up to 50 hours a week so it is essentially my only source of income. I do freelance work occasionally but nothing that generates enough money to keep the wolves from the door. Because of this I decided to go on the hunt for a new contract elsewhere. I have been offered a 12 month contract elsewhere on better money and closer to home. I also have strong reason to believe that I will have to battle for payment on any notice period I complete (I've seen it happen to several contractors that have left here).

I am committed to start the new contract in two weeks. Am I obligated to complete a notice period even though I am out of contract. Or can I simply resign from the position with immediate effect?

I should also mention that when reviewing my old, expired contract, there is no mention of notice period obligations. In fact the document fits on one page and basically offers the 6 month contract, rate and states the associated dates.

Thanks for reading and any help will be much appreciated.

northernladuk
27th June 2012, 21:10
Hi all,

Forum n00b here so my apologies if I'm posting in the wrong section.

I'm a Design Draughtsperson operating in the construction industry and I started a contract position in North Wales approximately 18 months ago.

As I was agency placed, my initial 3 months were on an agency contract. After that time had elapsed I agreed on a 6 month contract direct to the client. When this contract expired the work continued but I was never issued a renewed contract. Despite chasing for one frequently it never materialised. Now I'm still here, having worked the last 9 months without a contract renewal (I should mention that I am site based).

Oh dear... its going to go downhill from here. You do not work without a contract. You actually have an implied one in place which will reflect that last contract you both saw but still, pretty silly to be on site with nothing in writing and signed.



In recent months my client has hit major cash flow problems and as a result I have had several invoices paid late. This position often requires that I work up to 50 hours a week so it is essentially my only source of income. I do freelance work occasionally but nothing that generates enough money to keep the wolves from the door. Because of this I decided to go on the hunt for a new contract elsewhere. I have been offered a 12 month contract elsewhere on better money and closer to home. I also have strong reason to believe that I will have to battle for payment on any notice period I complete (I've seen it happen to several contractors that have left here).

I am committed to start the new contract in two weeks. Am I obligated to complete a notice period even though I am out of contract. Or can I simply resign from the position with immediate effect?

I should also mention that when reviewing my old, expired contract, there is no mention of notice period obligations. In fact the document fits on one page and basically offers the 6 month contract, rate and states the associated dates.

Thanks for reading and any help will be much appreciated.

So, why do you think you don't have to honour any notice period because you are out of contract? Would you have been happy if the client hadn't paid as they are out of contract? You seem a bit annoyed they are not paying on time bearing in mind in your scenario there is no contracted payment terms... You getting me.. don't work without a contract...

You have played this one pretty badly haven't you. You are a contractor.. the clue is in the name. If it is as bad as you say just stick your notice in as soon as possible for professional courtesy and see what happens. He can't stop you leaving. He may get really upset but he can't take you to court... oh, you think you are having problems getting payment now, wait till you put your notice in!!! He is still obliged to pay you so send him a letter everyday and look at payontime.co.uk for advice...

So summary...

a) Get notice in as soon a possible
b) Get a contract from new client
c) READ IT!!
d) Get it reviewed by QDOS
f) When it passes start work

Read the newbie guides to the right hand side as well, it appears you are missing a couple of things.

Wanderer
27th June 2012, 21:59
Forum n00b here so my apologies if I'm posting in the wrong section.

No, you are in the right place. Mostly we are a bit more gentle on folks here. :grin


I am committed to start the new contract in two weeks. Am I obligated to complete a notice period even though I am out of contract. Or can I simply resign from the position with immediate effect?

As northernladuk says, it's not a good move to work without a contract though if you work beyond the expiry of your contract then there may be an implied contract between you and the client.

I'd say that in the absence of any formal notice period, you just have to be professional about it. Tell them that you are leaving and you want to be paid up for the work you have done to date. If at all possible, try to get some sort of handover done rather than just walking out on the client and giving them reason to get pissed with you.

If they don't pay then you have to start dunning. This has been discussed a lot here, do a forum search on Google for site:forums.contractoruk.com dunning (http://www.google.co.uk/search?q=site%3Aforums.contractoruk.com+dunning) to understand how to handle the process.

Good luck!

northernladuk
28th June 2012, 10:33
Thinking about this further I think you are going to look quite seriously in to IR35 and discuss it with your accountant (please tell me you have one!!!!)

I cannot see how you can be outside IR35 here, not a bean of evidence and I am sure if the client is so lax on the contract they won't be putting any effort to differentiate you from their workforce. You don't currently have a leg to stand on when it comes to defending yourself in an investigation.

IMO you need to read up IR35, assess your situation and go talk to your accountant about your situation.