Contract with agency. What legal rights do they have after the contract expires?

[Naranjas]

Hi,

Lurker for a while here so apologies if this is an obvious question but just wanted to make sure I’ve got my head on right

Current situation. I’m a few days from the end of my contract with a consultancy. No extensions are allowed with the end client under Ltd so there is a PAYE employment contract on the table with the same consultancy. I haven’t signed yet, as I’m not 100% sure I want to.

Consultancy is being ultra aggressive with me saying that if I don’t sign the PAYE contract then I’m in breach of contract as the end client has been told I’m turning up next week and the impact would be deleterious on the consultancy and the end client if I don’t sign.

I’ve looked through my B2B contract (which I’m currently under) with the consultancy and there are no clauses referring to my company or employees being in breach by creating a negative situation for the consultancy or the end client by not turning up. Plenty of clauses about defective work and reparations for this but nothing about assumed extension under PAYE.

The only clause that is relevant is once that states my Ltd has to give the end hirer “reasonable notice as to when services won’t be provided”

My question is. I assume this last clause will expire once my B2B contract expires? As in, My ltd is under no obligation legally to provide any notice beyond the end date of the contract? And after that I have no legal obligation to the Consultancy?

Apologies for the length. The more I look at it they are just being aggressive because the promised the end client a PAYE conversion and forgot to actually get me to sign anything. Bear in mind I’ve only seen the final PAYE contract today

Thanks in advance.

[NotAllThere]

Their contract is with your ltd co. Not you. They're demanding the contract is terminated. Not you, so they can't get you on breach. Tell the consultancy to get stuffed. They've not got a leg to stand on, and I simply wouldn't work for anyone so stupidly aggressive. Life it too short.

You might tell them to desist with the bullying, or you'll sue for emotional stress - if you fancy a bit of fun, anyway.

[David71]

And just so we know who to avoid in the future.....name and shame the consultancy....

[northernladuk]

How long has the contract been on the table? They are just pushing you for a decision, nothing more. If you don't accept its going to leave them with egg on their face in front of the client. If they've been late with the contract then it's their fault. If you've sat on it for a week then they've got a right to be annoyed.

Either way there is no legal comeback whatsoever. LTD Co contract ends. That's it. Done. It's completely unrelated to the new offer.

Don't listen to their threats but do make a decision so you aren't dicking them around.

[northernladuk]

Just to add there maybe complexities about onboarding so even if you say yes you may not be able to go in on Monday. Insurances, onboarding on to PAYE etc. So leaving it to the very last minute isn't that smart.

[Andy Hallett]

As others have said, they can’t take action against you for a contract you haven’t agreed.

[eek]

That’s not your problem it’s the consutlanciy’s. Ask them how they are going to sue a company for not continuing a contract they (as the customer) cancelled

[eek]

How long has the contract been on the table? They are just pushing you for a decision, nothing more. If you don't accept its going to leave them with egg on their face in front of the client. If they've been late with the contract then it's their fault. If you've sat on it for a week then they've got a right to be annoyed.

Either way there is no legal comeback whatsoever. LTD Co contract ends. That's it. Done. It's completely unrelated to the new offer.

Don't listen to their threats but do make a decision so you aren't dicking them around.

even if it’s been sat in the table for a week they still haven’t got a reason to turn stupid

[northernladuk]

even if it’s been sat in the table for a week they still haven’t got a reason to turn stupid

Totally agree. Thought I'd made that clear but for the avoidance of doubt correct. They can be pissed off, they can't start threatening you with total rubbish.

[Naranjas]

Thanks all, very clear and consistent message!

The final contract was issued today, and the irony was it was only a last minute wobble about IR35 and my reluctance to accept any inherent risk that prompted the call with the consultancy. At that point they wheeled out the "you have to, Client would go spare with you and us and you'd be in breach" and properly triggered me.

Now as NotAllThere says, I'm not inclined to sign anything with these people, let alone an employment contract that contains multiple "breach" and "personal conduct detrimental to the company" type clauses. If they wheeled it out of thin air today, can you imagine what they would do if they actually had a legal case?

Thanks again all