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Contract clauses becoming more draconian?

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    Contract clauses becoming more draconian?

    I've noticed contracts with ever more draconian and litigious clauses.

    The latest one (which I haven't signed) seems to go a bit beyond what I've seen before. The liabilities section is 2 pages long. I did compare this to 2 or 3 previous contracts. But perhaps I'm being naive?

    For example

    - If the consultant gives notice, they will work 5 days for free (!) to provide a smooth handover [This will be removed, or I will not sign]

    - If the client approves a timesheet in one way or another, that shall not be taken as an indication of satisfaction with the work [then don't force me to use your stupid portal]

    - The Consultant Company and the Consultant hereby acknowledge that damages alone may not be an adequate remedy for the breach of any of the provisions of this Agreement. Accordingly, without prejudice to any other rights and remedies they may have, AgentX shall be entitled to the granting of equitable relief (including, without limitation, injunctive relief) concerning any threatened or actual breach of any of the provisions of
    this Agreement. [wtaf]

    - Contractor shall have public indemnity insurance for a full 12 months after expiry of the agreement [I have indemnity insurance but it's the first time I've seen it required to be valid 12 months after expiry; it's not a big deal in itself, just another example of them trying to legislate the sh*t out of the situation]

    - AgentX's total liability in contract, tort (including negligence or breach of statutory duty), restitution or otherwise, arising under or in connection with this Agreement shall be limited to the total fee of this Agreement. [Referred to a few past contracts in which liability was stated to be mutual, i.e. the standard £1m from public indemnity.]

    - Liability etc against e.g. any negligent, wilful, wrongful or fraudulent act or omission of the Consultant Company and/or the
    Consultant or any Substitute Consultant during the term of this Agreement / the Consultant acts in a way which is dishonest, incompetent or negligent or otherwise acts in a manner which is unprofessional, wrong or improper; [fine but what do these broad words cover legally? Elsewhere, it says the contract does not prohibit me for working for other third-parties. But could that be wrongful/improper?]

    In other news, it's quite decent from an ir35 perspective.

    #2
    All sounds like a good candidate to get the QDOS review with suggested changes
    ⭐️ Gold Star Contractor

    Comment


      #3
      Originally posted by PerfectStorm View Post
      All sounds like a good candidate to get the QDOS review with suggested changes
      Agree and will do, but I know from previous experience they will plead 'out of scope' and not touch anything which isn't concerned with IR35.

      Many of the clauses above are more to do with commercial decisions. Putting in extra-draconian liability clauses, IMO, doesn't affect IR35 -- the absence of any liability clause at all would for sure.

      You could argue that working for free to do a handover is positive for IR35, but that wouldn't be sufficient for me to agree. 'Contractor agrees to rectify mistakes at their own time and expense' is standard -- anything more specific is a commercial decision by the agency/end-client that they will leverage their bigger size to ram home the advantage.

      Comment


        #4
        Originally posted by zerosum View Post
        Agree and will do, but I know from previous experience they will plead 'out of scope' and not touch anything which isn't concerned with IR35.
        Got IPSE membership ? Maybe their Tax and legal helplines could help ...

        Free use of tax & contract helplines
        Providing you with all the advice and guidance required to ease the burden of tax, delivered by knowledgeable and friendly taxation experts at Abbey Tax.
        Guidance around:
        Any contracts governing your engagements
        Free 24 hour legal helpline
        Around the clock but never 'on the clock'; unlimited calls for legal support on business matters, whatever they might be. You’ll get quick, friendly, pragmatic advice and recommendations from fully qualified and experienced lawyers.
        Anyone ever tried using this ???


        QDOS also offer legal protection, but it seems more for it you are already in a dispute, rather than advice ?

        Comment


          #5
          I haven't signed.

          I've listed the clauses I find objectionable, and said as much to the client.

          In that much-abused phrase, no deal is better than a bad deal.

          Of course they gave me the 'we have x00 contractors who never raised an issue.' Have a feeling the vast majority of contractors don't read their contracts.

          Comment


            #6
            How long do you need to find an alternative ?

            If you have an alternative go for it, if you spend 6 months looking for an alternative then conditions however unsavoury aren't worth turning it down.

            When the market picks up the draconian clauses will disappear as quickly as they came in.
            I'm alright Jack

            Comment


              #7
              Originally posted by zerosum View Post
              I haven't signed.

              I've listed the clauses I find objectionable, and said as much to the client.

              In that much-abused phrase, no deal is better than a bad deal.

              Of course they gave me the 'we have x00 contractors who never raised an issue.' Have a feeling the vast majority of contractors don't read their contracts.
              The 5 days for free doesn't seem too bad if they will agree to an increase in rate of 2.5%. Price yo 12 months public indemnity and adjust tge rate accordingly. Some of the rest is daft and as you say objectionable.

              Comment


                #8
                What a bunch of jokers!

                Then again my recent contract they forgot to put a no return to the client within x months clause in so I went direct the second it ended.

                Comment


                  #9
                  Originally posted by zerosum View Post
                  Agree and will do, but I know from previous experience they will plead 'out of scope' and not touch anything which isn't concerned with IR35.
                  Simply work your preferred changes in with their feedback when you send it. It's your contract after all.
                  ⭐️ Gold Star Contractor

                  Comment


                    #10
                    Originally posted by zerosum View Post
                    Of course they gave me the 'we have x00 contractors who never raised an issue.' .
                    To which the correct response is "and....?". The agents lie, btw.
                    Down with racism. Long live miscegenation!

                    Comment

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