Legal notice period

[intodarkness]

Hi,

A few a slightly technical legal question. I started contracting in 2014 and signed a year's contract with a company for Project Management Services. We are now more than a year on and although the initial terms of the contract state that after expiry the contract converts to a rolling monthly contract.

The project management side of the business has dried up a bit and they've been getting me to do business development and various other admin roles to justify my monthly fee. I'm really not enjoying this and I think it's pretty obvious to them.

I'm thinking of moving on, although pretty soon that might not be voluntary. Do I or they still need to give 30 days notice? And if yes, is that 30 days from the time of notice, or a calendar month.

Thanks in advance for your help.

[SimonMac]

Was a new contract offered and signed after the original 12 months?

If yes > what does that contract say in terms of notice
If no > what does the original contract say in terms of notice

Although if no new contract was offered you have bigger problems now

[ASB]

If it has, as you state, converted into a rolling monthly contract then by definition the maximum notice required is one month.

There may potentially be other terms related to termination but since you don't mention them and the contract is sight unseen I have no idea of them.

In any event it seems to me that once you have made your mind up you could probably negotiate immediate release.

[northernladuk]

You realise you are, without a doubt, inside IR35? I do hope you've already realised this and are doing your accounts to suit.

[WTFH]

As well as the comments above, I would add that generally if you have a 30 day/1 month/whatever notice period, you would discuss with the client and ask them what they would be happy with.
Do you want to try to get out as soon as possible or are you happy to work for another 4 weeks (ish).

[intodarkness]

Hi, thanks for all the answers. I'm happy either way... Just wanted to know where I stand. As to IR35, I've had my accountants check contracts and done numerous online 'tests' and I'm low risk on all of them. I have also done other consulting while contracting for the current company.

[LondonManc]

Hi,

A few a slightly technical legal question. I started contracting in 2014 and signed a year's contract with a company for Project Management Services. We are now more than a year on and although the initial terms of the contract state that after expiry the contract converts to a rolling monthly contract.

The project management side of the business has dried up a bit and they've been getting me to do business development and various other admin roles to justify my monthly fee. I'm really not enjoying this and I think it's pretty obvious to them.

I'm thinking of moving on, although pretty soon that might not be voluntary. Do I or they still need to give 30 days notice? And if yes, is that 30 days from the time of notice, or a calendar month.

Thanks in advance for your help.

They don't have to give you any notice. Despite what's in the contract, if the money has dried up, they can simply say sorry work has run out, submit your timesheets and invoices for the days you've worked and off you trot. As for the 30 days, what does your contract say?

[Fred Bloggs]

I seriously, strongly advise you against quitting. I have been out of work since November 2014, I have dropped my rate expectations by 40% and I'm still out of work. Sit there as long as you can, if you're bored just find stuff to do, I have done so in the past.

[northernladuk]

Working practices trump your contract which is very much the case here.

Hi, thanks for all the answers. I'm happy either way... Just wanted to know where I stand. As to IR35, I've had my accountants check contracts and done numerous online 'tests' and I'm low risk on all of them. I have also done other consulting while contracting for the current company.

Well something is going badly wrong them. Rolling contracts are very bad for IR35 as it indicates MoO which is one of the key elements to IR35. For example..

It is possible that, by having an IT contract renewed many times, then this could be a pointer towards ‘employment’. In ESM0543, HMRC argues that “where work is regularly offered and accepted over a period of time a continuous contract of employment may be created.”

and then you say...

they've been getting me to do business development and various other admin roles to justify my monthly fee.

This couldn't be clearer D&C which is second of the three key indicators. It also demonstrates you are part and parcel which has been proven to be bad with case law. MoO is also evidenced here.

The fact you are supposed to be a contractor but have no idea what situation you are in regards to your contract would indicate a permie mentality and IMO should indicate you are inside as well.

IR35 is on a contract by contract basis. The work whilst on this contract may indicate you are business as per the now defunt BET's but doesn't impact your IR35 status on this gig. You could be a permie doing a bit of moonlighting, you are still a permie.

I'd put a good amount of money down that if you haven't spotted these elements and understood them there will be a ton of other evidence there to prove it as well. Pretty clear cut to me.

[northernladuk]

I seriously, strongly advise you against quitting. I have been out of work since November 2014, I have dropped my rate expectations by 40% and I'm still out of work. Sit there as long as you can, if you're bored just find stuff to do, I have done so in the past.

His IR35 status changes this bit of advice IMO.