Contract terminated without reason

[goldilockz]

Hello all,

I will try to keep this brief but am hoping you can offer some wisdom.

I have been contracting for the past 8 months for a company via a recruitment agency. Earlier this week, I received a call from the agency stating the company I have been working for has terminated my contract 'with immediate effect'. My contract is due to run until October 2018. Naturally, I asked the reason for this, and the agent replied 'performance-related issues, I haven't been given any further information' so I have no idea as to why the contract has been terminated other than this vague excuse. I was told I would receive further information the following day from both the company and the agency. Two days and three e-mails later, I have received no communication whatsoever, I've been completely ghosted by them and have had no answers as to why my job has suddenly ended.

Meanwhile, I have found out that three other colleagues in the same role have also been terminated, and that the company have been forced to save money due to the loss of a rather large contract (this is information that I probably shouldn't know but have heard on the grapevine) so I am assuming the 'performance-related' reason was a ruse. In addition, my contract reads that one month's notice must be provided if the client wishes to terminate the contract, and a month's garden leave will be provided in such circumstances as the client being unable to provide work. Circumstances that may lead to immediate termination include fraud, inappropriate conduct and if, 'for any reason the Consultancy or Consultancy Staff proves unsatisfactory to the Client'. Obviously, the last one is the one that would apply here, though still seems extremely vague.

So, in light of the above information, where do I stand? I have been in contact several times to try and find out why I have been dropped, and asked for confirmation regarding when my notice period begins and expires, and when I will receive my final salary contribution. On the phone, there was no mention of a notice period and I was removed from the systems straight away, but this question was asked in line with the wording in my contract. Do you have any advice regarding the next steps and if I can pursue any other avenues if I don't hear from the company? Any information would be much appreciated!

[SueEllen]

In general if you want answers to questions don't post them on a weekend.

Where do you stand? Without a contract. So spend your energy looking for another one.

The client has clearly run out of money and to prevent losses to both of you the agency has terminated you. What does the contract say about parties going into administration/liquidation? Companies can and do go bust if they lose the large client(s) they rely on.

[northernladuk]

We work T&M and are a flexible resource so there is always a risk this can happen. Is there a clause in your contract that states you don't get paid without a signed timesheet and/or you don't get paid if the agency get paid? If so then that's it you don't work therefore you don't get paid. They didn't have to make up a reason, they could have just said there is no more work, contract is still in effect but you won't be getting another penny which is the same thing.

Not much you can do here I am afraid. Chasing for notice period isn't going to work if they've run out of cash, particularly if there are a number of you. You could try it but it's more then likely going to come to naught.

This is one of the risms we are paid handsomely for I am afraid.

[goldilockz]

Thank you. I should clarify that they have lost one of many contracts, they aren't going into liquidation and are still a very large and wealthy company. Though it doesn't seem like we have many rights as contractors when it comes to unfair dismissal...

[stek]

Thank you. I should clarify that they have lost one of many contracts, they aren't going into liquidation and are still a very large and wealthy company. Though it doesn't seem like we have many rights as contractors when it comes to unfair dismissal...

Correct, your rights lie with your employer, i.e. you. You've no been dismissed, daily or unfairly, your company has lost a client, that's all.

You will still be paid by yourltd, while yourltd pitches for new work...

[SueEllen]

Thank you. I should clarify that they have lost one of many contracts, they aren't going into liquidation and are still a very large and wealthy company. Though it doesn't seem like we have many rights as contractors when it comes to unfair dismissal...

You weren't dismissed unfairly though.

They lost a client and as a result you lost a client.

As a permanent employee if they lost a client and they couldn't move you on to another project they would make you redundant.

[fatJock]

Your final salary contribution? You're a service provider - work has dried up hence they no longer need you to provide the service.

I don't get what the issue is? Notice clauses are of no benefit to you seeing as largely there is no obligation to provide work and if you don't work you don't get paid.

Perhaps you'd like sick pay too and direct pension contributions? ��

[northernladuk]

What everyone else's says. You need to understand what you are and the way you engage with your clients better. Once you do situations like this will become a lot easier to understand and action.

[washed up contractor]

Hello all,

I will try to keep this brief but am hoping you can offer some wisdom.

I have been contracting for the past 8 months for a company via a recruitment agency. Earlier this week, I received a call from the agency stating the company I have been working for has terminated my contract 'with immediate effect'. My contract is due to run until October 2018. Naturally, I asked the reason for this, and the agent replied 'performance-related issues, I haven't been given any further information' so I have no idea as to why the contract has been terminated other than this vague excuse. I was told I would receive further information the following day from both the company and the agency. Two days and three e-mails later, I have received no communication whatsoever, I've been completely ghosted by them and have had no answers as to why my job has suddenly ended.

Meanwhile, I have found out that three other colleagues in the same role have also been terminated, and that the company have been forced to save money due to the loss of a rather large contract (this is information that I probably shouldn't know but have heard on the grapevine) so I am assuming the 'performance-related' reason was a ruse. In addition, my contract reads that one month's notice must be provided if the client wishes to terminate the contract, and a month's garden leave will be provided in such circumstances as the client being unable to provide work. Circumstances that may lead to immediate termination include fraud, inappropriate conduct and if, 'for any reason the Consultancy or Consultancy Staff proves unsatisfactory to the Client'. Obviously, the last one is the one that would apply here, though still seems extremely vague.

So, in light of the above information, where do I stand? I have been in contact several times to try and find out why I have been dropped, and asked for confirmation regarding when my notice period begins and expires, and when I will receive my final salary contribution. On the phone, there was no mention of a notice period and I was removed from the systems straight away, but this question was asked in line with the wording in my contract. Do you have any advice regarding the next steps and if I can pursue any other avenues if I don't hear from the company? Any information would be much appreciated!

What others are dancing around is this; The company you were working at have decided they do not want you and the other contractors anymore. They'd rather say the reason is down to your work instead of embarassing themselves to you by saying their projected income has suddenly reduced or stopped.

There's nothing you can do really except understand this happens quite a lot in contracting. Agencies and companies would rather show you up instead of themselves.

If you havent done the work, you dont normally get paid but that depends on your contract.

Best look for another role and move on.

[malvolio]

I would also add that the size and viability of the client company has absolutely no bearing on it. You will have been paid out of a discrete and almost certainly capped budget. If the budget holder has run out of money, has overspent, has been working on something that isn't going to work or has simply lost his client, then that's the end of the line, regardless of now much spare cash the wider company has.

It's a PITA of course, but all you can do is get on with the next gig.