Agency trying to dodge paying notice
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    Default Agency trying to dodge paying notice

    Hi All,

    I am having some trouble with the notice period on my contract. I have been working on a project for the past four months and the contract terminated early. There are a number of clauses on which the notice may not be paid but there is also this part of my contract which I am having troubles understanding (below). I think what this means is the agency can just cancel the contract and restart it with their client hence getting out of paying me my notice. Is this true?

    The Supplier acknowledges that the continuation of an Assignment is subject to and conditional upon the continuation of the master
    contract entered into between Modis and the Client (and which this Agreement is made pursuant to) (the “Master Agreement”). In the
    event that the Master Agreement (or any part thereof) is terminated for any reason the Assignment shall cease with effect from the same
    date as the termination of the Master Agreement (or any part thereof) takes effect and without further liability of Modis to the Supplier for
    notice or payment in lieu of notice. Modis will endeavour to give reasonable notice (based on the period of notice given to Modis) in the
    event that this clause comes into effect.

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    Quote Originally Posted by ma7bd View Post
    Hi All,

    I am having some trouble with the notice period on my contract. I have been working on a project for the past four months and the contract terminated early. There are a number of clauses on which the notice may not be paid but there is also this part of my contract which I am having troubles understanding (below). I think what this means is the agency can just cancel the contract and restart it with their client hence getting out of paying me my notice. Is this true?

    The Supplier acknowledges that the continuation of an Assignment is subject to and conditional upon the continuation of the master
    contract entered into between Modis and the Client (and which this Agreement is made pursuant to) (the “Master Agreement”). In the
    event that the Master Agreement (or any part thereof) is terminated for any reason the Assignment shall cease with effect from the same
    date as the termination of the Master Agreement (or any part thereof) takes effect and without further liability of Modis to the Supplier for
    notice or payment in lieu of notice. Modis will endeavour to give reasonable notice (based on the period of notice given to Modis) in the
    event that this clause comes into effect.
    It looks like it yes. Most contracts have some clause in like this or not paying the contractor if the client doesn't pay etc. If the client turns round to the agency and says thats it on Friday what can the agency do but let you go immediately. The agency will never take on the risk of paying you notice if the client cancels. There is of course the other factor that you are only paid to work if there is work, no work=no pay whatever state the contract is in. This is why notice periods are a bit useless in contracts. It is permie mentality that you get paid your notice regardless of what happens to the work. The permies company is oblieged to by notice. The agent isn't in if the agent isnt getting paid.

    It would have been slightly cleverer of them if they had said we are giving you your notice which is a month (for example) but we don't have any work for you. That way they would be fulfilling their obligation to give notice playing on the fact you have no work to be paid for.

    Whether or not this is fair would depend on the agreement between the agent and the client. If they have given notice and agent has been paid this notice and not passed it on then thats out of order.. but still.. if there is no work for you you still can't expect to be paid. It could bet that the agent is hacked off this early finish as well as his revenue stream has also unexpectedly stopped. Either way unfortunatly what happens between them isn't for you to worry about.
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    Quote Originally Posted by ma7bd View Post
    Hi All,

    I am having some trouble with the notice period on my contract. I have been working on a project for the past four months and the contract terminated early. There are a number of clauses on which the notice may not be paid but there is also this part of my contract which I am having troubles understanding (below). I think what this means is the agency can just cancel the contract and restart it with their client hence getting out of paying me my notice. Is this true?

    The Supplier acknowledges that the continuation of an Assignment is subject to and conditional upon the continuation of the master
    contract entered into between Modis and the Client (and which this Agreement is made pursuant to) (the “Master Agreement”). In the
    event that the Master Agreement (or any part thereof) is terminated for any reason the Assignment shall cease with effect from the same
    date as the termination of the Master Agreement (or any part thereof) takes effect and without further liability of Modis to the Supplier for
    notice or payment in lieu of notice. Modis will endeavour to give reasonable notice (based on the period of notice given to Modis) in the
    event that this clause comes into effect.
    It says that your contract ceased the minute Modis lost their contract with the end client. Modis will get no more money from the client hence no notice was possible. Go look for your next role. File it as part of your IR35 defence while you're at it; it demonstrates clear lack of Mutuality, which is a good thing.

    And remember the mantra - "Notice periods are for permies".
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    What I don’t understand is I have to give them four weeks’ notice if I wanted to call it a day. If they are going to use this clause why did they even put a notice period on the contract?
    In addition how do I get them to prove to me that the contract was cancelled? They could just be saying the contract was cancelled to pull a fast one…

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    Hi Superposter,

    Thanks for your response. When you say the client looses the contract with the client does this mean the contract for this particular project or the entire contract between modis and the client?

    Regards,

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    Quote Originally Posted by malvolio View Post
    And remember the mantra - "Notice periods are for permies".
    Agreed.

    Regardless of what the letter of the contract is, I wouldn't presume that I would be paid for a notice period if I got the boot. It's one of those stupid contract terms that doesn't mean tulip.

    Paid for time worked, yes but notice period, no.

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    Quote Originally Posted by ma7bd View Post
    What I don’t understand is I have to give them four weeks’ notice if I wanted to call it a day. If they are going to use this clause why did they even put a notice period on the contract?
    In addition how do I get them to prove to me that the contract was cancelled? They could just be saying the contract was cancelled to pull a fast one…
    Your notice period to them is completely different from their notice period to you. It is not unusual for these to be different in the contracting world. As other people have mentioned if you contract said that they had to give you 4 weeks notice then they could still do that and say that they have no work for you during that time and you would get no money. Notice periods from the agency to you mean nothing in reality.
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    Sorry to be blunt about this - as you're probably feeling a bit down right now, but...

    Although the contractor=>agency notice period of 4 week applies, you never had a agency=>contractor notice period in the first place.

    However the contract was probably worded as such that you can get the impression that you did have a notice period - hence your surprise.

    Sorry, but this is contracting. You can be laid off, without reason, with a minute's notice and no pay from that point onwards.

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    Quote Originally Posted by centurian View Post
    Sorry to be blunt about this - as you're probably feeling a bit down right now, but...

    Although the contractor=>agency notice period of 4 week applies, you never had a agency=>contractor notice period in the first place.

    However the contract was probably worded as such that you can get the impression that you did have a notice period - hence your surprise.

    Sorry, but this is contracting. You can be laid off, without reason, with a minute's notice and no pay from that point onwards.
    Exactly...and the naivety of some "contractors" on here astonishes me at times.

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