Legal Query

[andymalory]

Hi,

Some advice required if possible.

I am currently employed within IR35 regulations, working for a client through an umbrella company and an agency. As of now, I have completed six months of a 12-month contract. However, due to the recent changes in my personal circumstances, it has become necessary for me to seek alternative employment opportunities.

Upon reviewing my contract, I noted that it states, "No provision for early termination." In light of this clause, I am uncertain about my options for leaving the contract before its intended completion.

Considering my employment status within IR35, and thus having the same employee rights as a regular employee, I am wondering if I can provide notice to terminate the contract and subsequently negotiate a mutually agreeable timeline for my departure with the client. While I believe the client will be understanding of my situation, I am also keen on ensuring that I proceed in accordance with all legal requirements, and would like to safeguard myself legally in my dealings with the agency.

Would anyone know where I stand with leaving my contract early?

PS I also intend to seek advice from a legal representative to clarify my rights and obligations

Thanks

As others have said on here, the first thing I think you need to do is raise the issue very honestly with your client and test their position. In most cases that I've ever been part of, your day-to-day relationship is only ever with the client. So the client's view drives the agency, which in turn drives the umbrella, despite the contractual fact that your employment contract is with the brolly.

If the client agrees, the whole thing becomes a lot easier through the chain. Just make sure you still engage the brolly formally.

I've been in contracts where even in a fixed term contract, there are provisions, at least on one side, for early termination. I know you've found the "No provision for early termination." line, but I'd still look for other notice provisions. They may conflict but it'll give you an idea of original intent.

There's also a difference between a fixed term contract, and a contract which has an initial term.

Don't concentrate too much on the 'I've got the same employment rights' part - its not actually true.

Do you have a view on whether the brolly would lose out financially (aside from margin) if you left early? Whilst an early exist out of a true fixed term arrangement can be pursued legally, it is likely to depend on losses actually incurred (unless other costs/liability clauses exist).