contract terminated without notice

[bob132]

Hi,

I am an IT contractor and found out yesterday that I have had my contract terminated with immediate effect.
The email from my agency states it is due to "unsatisfactory performance".

I have been on a 3month rolling contract with 30days notice period all year (by both parties) until being notified just last week that any future contracts would be 1month 7days notice, with effect 1st October.

I have never been in this position before and do not quite know how to proceed. It is my understanding that I
should be given 30days notice and therefore should be paid that given that I have not broken any rules.

Would someone be able to assist interpretting these contractual items?
Regards
Bob

5. Termination of a Supply

5.1 Either the Consultancy or the "Whatever Group" may terminate a Supply by giving notice of to the other as detailed in a schedule to the Terms, in the absence of a period of notice being detailed in a schedule to the Terms the period of notice required shall be 30 days.

5.2 The "Whatever Group" may without notice, and without liability, instruct the Consultancy to cease work on a Supply at any time, where:

5.2.1 the Consultancy, or its Staff, has committed any serious, persistent, or deliberate, breach of any of its obligations under the Terms; or

5.2.2 the Client reasonably believes that the Consultancy, or its Staff, has not observed any condition of confidentiality applicable to the Consultancy from time to time; or

5.2.3 for any reason the Consultancy proves unsatisfactory to the Client; or

5.2.4 the Consultancy is unable to perform the Consultancy Services for over two days; or

5.2.5 the Consultancy becomes insolvent, has a receiver appointed, makes a resolution to wind up, is rendered bankrupt, or enters into an arrangement with its creditors; or

5.2.6 The "Whatever Group" has reason to believe that the Consultancy is using a member of Staff for the purposes of the provision of Consultancy Services who has been found guilty of, or is currently charged with, a crime of fraud, violence against another person, theft, dishonesty, or any other offence that can attract a custodial sentence; or

5.2.7 the Client has terminated the Supply pursuant to their contract with the "Whatever Group".

5.3 Without prejudice to the rights of "Whatever Group" as set out in the Terms, "Whatever Group" may suspend a Supply, with immediate effect and for an indefinite period by giving notice of the same to the Consultancy. In the event that "Whatever Group" suspend a Supply the Consultancy agrees not to provide any services to the Client, and not to permit any of it’s Staff to provide services to the Client, during such suspension.

5.4 Failure by the Consultancy to give notice of termination as required in clause 5.1 shall constitute a breach of contract and shall entitle the "Whatever Group" to claim damages from the Consultancy for any resulting loss suffered by the "Whatever Group".

5.5 The Consultancy acknowledges that the continuation of the Supply is subject to and conditional upon the continuation of the Terms entered into between the "Whatever Group" and the Client. In the event that the contract between the "Whatever Group" and the Client is terminated for any reason the Supply shall cease with immediate effect without liability to the Consultancy.

5.6 The "Whatever Group" is not obliged to offer any repeat business to the Consultancy, nor is the Consultancy obliged to accept such an offer should it arise.

[SimonMac]

5.2.3 for any reason the Consultancy proves unsatisfactory to the Client; or

This is the key to say legally they can, and as it does not define what unsatisfactory means there is very little wiggle room, you have two choices.

1. Say sod it! It was good while it lasted and look for the next gig
2. Kick up a fuss and fight for the 30 days notice

The route you go for depends on if you believe your performance was unsatisfactory, do you have any emails praising your work? Or had there been any times you have been taken aside and asked to do better etc.

[bob132]

Thank you.

I can add, categorically, it was not due to poor performance! I am an extremely hard working individual who has been praised throughout the year by staff, colleagues and line manager in review meetings.

I was handling multiple large projects and being tasked with additional work every single week.
I by far had the biggest workload of the 4 contractors and this was all reviewed within the past 7days by the manager who let me go unexpectedly.

Regards

[cojak]

This is the route they take if they run out of money before your end of contract and don't want to pay you the notice period.

You've been there a year and there have been changes to your contract - it sounds like the project is heading to the rocks. Don't let it hit your self-esteem. I would meet the PM and ask what specifically was inadequate about your work. Not to demand reinstatement (because of the above), but to improve your performance in the future.

My guess is that the PM will find it an uncomforatble situation and will try to squirm out of it - don't let him. At the end of the meeting you will BOTH know how satisfactory your work is, whether he says so or not.

[jamesbrown]

Thank you.

I can add, categorically, it was not due to poor performance! I am an extremely hard working individual who has been praised throughout the year by staff, colleagues and line manager in review meetings.

I was handling multiple large projects and being tasked with additional work every single week.
I by far had the biggest workload of the 4 contractors and this was all reviewed within the past 7days by the manager who let me go unexpectedly.

Regards

They are just using the simplest get-our provided to them in the contract ("for any reason" [...]). It's probably a change of direction or funding issue. In any case, your best bet would be to concentrate your time and effort on securing a new contract. Best of luck.

[tractor]

...

This is the route they take if they run out of money before your end of contract and don't want to pay you the notice period.

You've been there a year and there have been changes to your contract - it sounds like the project is heading to the rocks. Don't let it hit your self-esteem. I would meet the PM and ask what specifically was inadequate about your work. Not to demand reinstatement (because of the above), but to improve your performance in the future.

My guess is that the PM will find it an uncomforatble situation and will try to squirm out of it - don't let him. At the end of the meeting you will BOTH know how satisfactory your work is, whether he says so or not.

All valid and it may also have been they needed to cut costs and you were the most expensive of the team.

[cojak]

All valid and it may also have been they needed to cut costs and you were the most expensive of the team.

Not a very ethical way to do it, however.

[TheFaQQer]

5.2 The "Whatever Group" may without notice, and without liability, instruct the Consultancy to cease work on a Supply at any time, where:

5.2.3 for any reason the Consultancy proves unsatisfactory to the Client; or

There it is.

They just need to say "we're not satisfied" and terminate the contract with immediate effect. They don't need to say why they aren't satisfied, or detail anything that you have or have not done. In an ideal world, you would get the chance to put things right at your cost, but it's not an ideal world.

I've seen it happen when people just didn't fit. I've seen it happen when the project ran out of money. If they want rid of you, and you have the clause, then there is nothing that you can do about it.

Find a new contract, preferably one which gives you some measure of being able to stop this happening again.

[bob132]

Thanks All,

Should I have paid more attention to the contract in the 1st place when signing and perhaps asked this 5.2.3 point to have been excluded/amended or would they have refused to change something like that full stop and said take it or leave it..

[TykeMerc]

There are 3 scenarios that cause this.

1. You're underperforming - With multiple renewals that's possible but not very likely unless something has happened recently.

2. They've changed their mind about the projects you're working on and canned or lowered the priority or they've just run out of budget so want you gone.

3. They've found a permie or cheaper contractor so want you gone.

The harsh reality of how we work is that notice periods are very rarely worth the ink that they're printed with, the clients will happily claim anything if they wish to terminate immediately and you're effectively screwed.