Hi everyone!
My Ltd is currently in a contract that was supposed to run until 28/2/2021. The agreement specifies a 30-day notice required to terminate the contract early from either party. On 15/12/2020, the agency served the 30-day early termination notice with the agreement that the contract will terminate on 15/1/2021. This was disappointing but perfectly in line with the contract agreement. However, yesterday the agency informed me that the client changed the termination date to 31/12/2020, i.e. today.
Both the agency and end client representative have confirmed that this is not specific to my Ltd. I have always fulfilled all my obligations set out in the contract agreement and there were never any questions about the quality of the work (quite the opposite in fact). The end client is apparently cutting 90% of their contractors and external agencies. My understanding is that the end client got their budget cut heavily by their corporate headquarters for the Q1&2 of 2021.
I informed the agency and the end client that my services are available until the agreed early termination date on 15/1/2020 and I expect to follow the terms specified in the contract. The agency told me that they cannot accept any invoice for work after today, quoting "force majeure -customer cancelling the contract with the agency on short notice" (I really doubt client cancelling the contract with them can be considered force majeure)
I have read the forum, including threads where people were in a similar situation. I'm aware that normally contractors are paid based on signed timesheets and any notice periods are effectively meaningless. However, my contract agreement contains no such provision and I have never filled a single timesheet with the agency or the end client -- being one of the longest-serving developers on the project, I was really operating outside any team structures in a true consulting fashion. I'm not sure if this makes any difference?
My question is if it's worth pursuing this legally and should I invoice the 2 weeks in January and attempt to recover it using a debt collection agency? My gut feeling is no, purely on the cost/benefit analysis alone - the 2 weeks are better spent looking for a new contract and the 2 weeks lost earnings are not significant in the grand scheme of things. However, I'm a man of a principle and I believe an agreement should be honoured. It bugs me that a massive corporation can bully small contractors like this while making billions in profit.
I'd appreciate any advice, thanks!
My Ltd is currently in a contract that was supposed to run until 28/2/2021. The agreement specifies a 30-day notice required to terminate the contract early from either party. On 15/12/2020, the agency served the 30-day early termination notice with the agreement that the contract will terminate on 15/1/2021. This was disappointing but perfectly in line with the contract agreement. However, yesterday the agency informed me that the client changed the termination date to 31/12/2020, i.e. today.
Both the agency and end client representative have confirmed that this is not specific to my Ltd. I have always fulfilled all my obligations set out in the contract agreement and there were never any questions about the quality of the work (quite the opposite in fact). The end client is apparently cutting 90% of their contractors and external agencies. My understanding is that the end client got their budget cut heavily by their corporate headquarters for the Q1&2 of 2021.
I informed the agency and the end client that my services are available until the agreed early termination date on 15/1/2020 and I expect to follow the terms specified in the contract. The agency told me that they cannot accept any invoice for work after today, quoting "force majeure -customer cancelling the contract with the agency on short notice" (I really doubt client cancelling the contract with them can be considered force majeure)
I have read the forum, including threads where people were in a similar situation. I'm aware that normally contractors are paid based on signed timesheets and any notice periods are effectively meaningless. However, my contract agreement contains no such provision and I have never filled a single timesheet with the agency or the end client -- being one of the longest-serving developers on the project, I was really operating outside any team structures in a true consulting fashion. I'm not sure if this makes any difference?
My question is if it's worth pursuing this legally and should I invoice the 2 weeks in January and attempt to recover it using a debt collection agency? My gut feeling is no, purely on the cost/benefit analysis alone - the 2 weeks are better spent looking for a new contract and the 2 weeks lost earnings are not significant in the grand scheme of things. However, I'm a man of a principle and I believe an agreement should be honoured. It bugs me that a massive corporation can bully small contractors like this while making billions in profit.
I'd appreciate any advice, thanks!
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