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continue working on a fixed term contract without a signed extension

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    continue working on a fixed term contract without a signed extension

    Hello,
    I have searched the forum and the gov.uk website but i have not found answers to my questions so i hope somebody will be able to help. I am on a 2 year fixed term contract, which is expiring at the end of the month. My employer wants to extend me for a further 6 months but they told me it will take another few weeks before they can send me the extension contract. My questions:
    1) should I come to work as normal after my 2 year contract has expired and without having signed the extension? Or should i insist to get the extension first (I could just take some time off in the meantime)?
    2) What are the legal implications if i come to work after my contract has expired and i have not signed a new one yet? For instance, could they issue an extension contract with less favorable terms and conditions than my original 2 year contract?

    Thank you in advance for your help.
    Calder

    #2
    Never a good idea to work without a contract. You are at real risk of not being paid.

    There are also insurance considerations - some clients are in breach of their liability insurances if someone is working on site without a contract in place to be there. Double check with your contact whether they have considered this.

    Similarly, some clients have IT systems that kick in to disable building and system access when a fixed term contract expires - will you still be able to deliver?

    You could get a letter of intent from the client, confirming that they will pay any invoices raised during the gap. However, if that's something the manager knocks up without their legal team's consent, you have to wonder if it's enforceable and, if it is, why they can't knock up a full on contract instead.

    I've not seen any evidence either way but I wonder if working outside of a contract is a MOO indicator? My gut says that it is a different matter entirely but it popped into my head as something else to check out.

    Comment


      #3
      Originally posted by ladymuck View Post
      Never a good idea to work without a contract. You are at real risk of not being paid.

      There are also insurance considerations - some clients are in breach of their liability insurances if someone is working on site without a contract in place to be there. Double check with your contact whether they have considered this.

      Similarly, some clients have IT systems that kick in to disable building and system access when a fixed term contract expires - will you still be able to deliver?

      You could get a letter of intent from the client, confirming that they will pay any invoices raised during the gap. However, if that's something the manager knocks up without their legal team's consent, you have to wonder if it's enforceable and, if it is, why they can't knock up a full on contract instead.

      I've not seen any evidence either way but I wonder if working outside of a contract is a MOO indicator? My gut says that it is a different matter entirely but it popped into my head as something else to check out.
      If a Fixed Term Contract it’s inside IR35 anyway so MOO is moot

      It’s an employment contract with a definite end date though. So I would be wary about working without something written down. Best to discuss with the manager. If you’ve been there 2 years you have a good relationship with them.
      See You Next Tuesday

      Comment


        #4
        I believe this page answers the OPs question.

        https://www.gov.uk/fixed-term-contra...dterm-contract
        Last edited by northernladuk; 19 February 2018, 18:13.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by calder View Post
          My employer wants to extend me for a further 6 months but they told me it will take another few weeks before they can send me the extension contract.
          Have an addendum drawn up and added to your existing contract to extend the duration of the original term by six months, with all other terms remaining unchanged. As long as the budget is in place, this shouldn't take more than a few days at most.

          Comment


            #6
            Not sure how fixed term differentiates from 'normal' but under normal circumstances I'd be letting the client know that I'd be taking time off at the end of the current contract until the new contract/extension is in place.

            If client is bothered about that it's up to them to get their paperwork sorted in time.

            The risk with working without a contract in place is that even though those you work with want to keep you on, until it's in writing then higher management may have other ideas.
            Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

            Comment


              #7
              Originally posted by Hobosapien View Post
              Not sure how fixed term differentiates from 'normal' but under normal circumstances I'd be letting the client know that I'd be taking time off at the end of the current contract until the new contract/extension is in place.

              If client is bothered about that it's up to them to get their paperwork sorted in time.

              The risk with working without a contract in place is that even though those you work with want to keep you on, until it's in writing then higher management may have other ideas.
              It's an FTC. That's a conventional permie employment contract with a set end date and restrictions on access to things like pension rights and redundancy payments (i.e. there aren't any) You cannot treat it like a freelance contract.

              So, for example, you can't simply decide to take time off, you have a limited holiday allocation and beyond that you don't get paid. Stretch that too far and you are dismissed for gross misconduct. And so on.

              Also, it's a while since I looked but various employment rights accrue after two years anyway. Meaning the OP will probably need a whole new contract. It may look exactly the same as the current one.

              Finally, if he continues working without a new contract, normally the terms of the old one will still apply by default. However, one of those terms is that the employment stops at a set date.

              I don't know the answer but I suspect playing hardball with the OP's employer is a necessary step.
              Blog? What blog...?

              Comment


                #8
                Originally posted by malvolio View Post
                It's an FTC. That's a conventional permie employment contract with a set end date and restrictions on access to things like pension rights and redundancy payments (i.e. there aren't any) You cannot treat it like a freelance contract.

                So, for example, you can't simply decide to take time off, you have a limited holiday allocation and beyond that you don't get paid. Stretch that too far and you are dismissed for gross misconduct. And so on.

                Also, it's a while since I looked but various employment rights accrue after two years anyway. Meaning the OP will probably need a whole new contract. It may look exactly the same as the current one.

                Finally, if he continues working without a new contract, normally the terms of the old one will still apply by default. However, one of those terms is that the employment stops at a set date.

                I don't know the answer but I suspect playing hardball with the OP's employer is a necessary step.
                But if he's at the end of his FTC then he's not bound by any of the rules, unless they extend. But I agree play hard ball otherwise you're left open to risk

                Comment


                  #9
                  Originally posted by VillageContractor View Post
                  But if he's at the end of his FTC then he's not bound by any of the rules, unless they extend. But I agree play hard ball otherwise you're left open to risk
                  Agreed, but I was trying to clarify the position in response to those who seem to have no proper understanding of FTCs and are advocating the conventional withdrawal of labour approach.

                  And if you don't renew an FTC, you're no longer employed so don't have a lot of bargaining power...
                  Blog? What blog...?

                  Comment


                    #10
                    Originally posted by malvolio View Post
                    Agreed, but I was trying to clarify the position in response to those who seem to have no proper understanding of FTCs and are advocating the conventional withdrawal of labour approach.

                    And if you don't renew an FTC, you're no longer employed so don't have a lot of bargaining power...
                    Of course you have bargaining power. If they need you then you have some power - maybe not a lot though, only OP will know

                    Comment

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