Early Termination of Fixed Term Contract

[Pumpaede]

Hi,
I would be so grateful if anyone could give me a bit of advice regarding my situation:

I entered into a 12 month Fixed Term contract with my current employer which was due to end on 25th April 2010 and today they pulled me into a meeting saying that they will be terminating the contract early on 1st Oct 2010 as their workload and funding has been cut back.

Now i know that most companies make sure that their contracts have an early termination clause and a period of notice incase they do need to end contracts early, but having looked through my contract the only part that relates to this states

" Notice - Employees cannot demand a period of notice as a right when their appointments are terminated. Normally, however unless you are dismissed on disciplinary grounds and providing you have served continuously for one month or more the following minimum periods of notice will apply:

- Staff with less then 4 years continuous service: 5 weeks

If you decide to leave you are expected to give not less than one months notice"

So am i right to think that this is only a statement regarding the notice period for when my contract is due to expire and not an early termination clause as such, or do you believe that this is a good enough statement to represent an early termination clause?

Thanks for any help

Charlotte xxx

[cojak]

I take it that your contract was due to end in April 2011?

[Scrag Meister]

Sounds like they are only giving you 2 weeks notice.

It does imply that they would give you 5 unless you are actually fired for some disciplinary reason.

but

"Employees cannot demand a period of notice as a right when their appointments are terminated" implies there is not guranteed contractual notice period.

Talk to them and ask why they aren't complying with the clause in the contract. The clause did seem a bit wishy washy though.

[Wanderer]

Are you contracting through an agency and a limited company/umbrella or is this a permie position where the company pays PAYE and NI for you? The contract is worded very much to sound like a permie one to me.

I'd write to them and say:

"As I have not been dismissed on disciplinary grounds and given that I have served continuously for one month or more, according to my contract I am entitled to 5 weeks notice of the termination of the contract. Can you please explain what abnormal circumstances apply and why I've only been given 2 weeks notice."

They will probably say something like "the project is being canned" but to me that's a pretty weak reason.

As a contractor working through an agency then you could have a go at the agency to pay you off for the 5 weeks notice.

As a permie (albeit a fixed term contract) you probably don't have much of a case. I don't think you can take them to a tribunal unless you have worked there for over 12 months.

Your local Citizens Advice Bureau may be able to give you good legal advice on what to do but it might be best to concentrate on finding your next job.

[SueEllen]

If you are on a fixed term contract and working under PAYE directly through the company then you have the same rights as an employee in regards to termination.

That means they have to give you proper notice and pay you for that notice period. As permies get paid whether there is work for them or not.

I'm sure you have heard of "gardening leave" where permies get paid their notice period when they are in the process of leaving a company for various reasons including redundancy.

There are different laws in which you can take an employer to an employment tribunal on and not paying wages as per the employment contract is one of them. Your claim is likely to fit into this law (You can't claim for unfair dismissal as you haven't worked there a year and a day, and to be honest it's not unfair dismissal.)

If you can't get help from the CAB or legal centre, as they are over worked, then try and get a 30 minute free consultation with an employment lawyer. You house insurance may allow this if you took out the legal option, or ask around your friends or family as someone is sure to know one.

In the meantime contact ACAS (google them) and have a word with them about your situation. ACAS will give you brief help but don't rely on them as for anyone to help you they have to see your employment contract in full. Your contract seems to contain lots of contradictory clauses which may not be legal.

[BolshieBastard]

Are you contracting through an agency and a limited company/umbrella or is this a permie position where the company pays PAYE and NI for you? The contract is worded very much to sound like a permie one to me.

I'd write to them and say:

"As I have not been dismissed on disciplinary grounds and given that I have served continuously for one month or more, according to my contract I am entitled to 5 weeks notice of the termination of the contract. Can you please explain what abnormal circumstances apply and why I've only been given 2 weeks notice."

They will probably say something like "the project is being canned" but to me that's a pretty weak reason.

As a contractor working through an agency then you could have a go at the agency to pay you off for the 5 weeks notice.

As a permie (albeit a fixed term contract) you probably don't have much of a case. I don't think you can take them to a tribunal unless you have worked there for over 12 months.

Your local Citizens Advice Bureau may be able to give you good legal advice on what to do but it might be best to concentrate on finding your next job.

No, no, no, no!

I agree with the gist of your comment but there is absolutely no need to ask them 'what abnormal circumstances apply.' This is giving them wriggle space.

All the OP need do is point out to them the wording in the clause and say 'it's 5 weeks notice, pal so pay up in full or I start legal proceedings.'

[MarillionFan]

No, no, no, no!

I agree with the gist of your comment but there is absolutely no need to ask them 'what abnormal circumstances apply.' This is giving them wriggle space.

All the OP need do is point out to them the wording in the clause and say 'it's 5 weeks notice, pal so pay up in full or I start legal proceedings.'

WBBS

To the point. Simple

[Zippy]

On reading the original post it seemed clear that your employers owe you 5 weeks wages. Then I read the replies and began to see the anbiguity.
If I were you I would ignore the 'normally' word when demanding your notice pay. If they insist they will not pay, then you need to get them to put in writing what is 'not normal' about this situation. They may just be trying it on.

Best of luck with getting your money.

[SueEllen]

No, no, no, no!

I agree with the gist of your comment but there is absolutely no need to ask them 'what abnormal circumstances apply.' This is giving them wriggle space.

All the OP need do is point out to them the wording in the clause and say 'it's 5 weeks notice, pal so pay up in full or I start legal proceedings.'

Helps if you know what legal proceedings to threaten them with first.

But you are right don't give them wiggle room.

[Wanderer]

absolutely no need to ask them 'what abnormal circumstances apply.' This is giving them wriggle space.

Fair comment, they are probably trying it on anyway so cut right to the chase and they can try it on in court.