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No Termination terms in Agency contracts

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    No Termination terms in Agency contracts

    I am seeing in more and more contracts that the agency writes in a clause that they can terminate the agreement at any time or with notice, but the supplier/contractor cannot terminate the agreement.

    Is this legal?
    Is it enforcable?

    Even though the agency will insist it cant be changed, what are other contractors' experiences in getting agencies to change this?

    #2
    Yes
    Yes

    You don't need/want a notice period. You're not a permie. Does your plumber or builder have a notice period? It's the same thing (assuming you're a LTD)

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      #3
      I can't give any notice on my current gig - that's a good thing!

      Comment


        #4
        Originally posted by georgefrancis View Post
        I am seeing in more and more contracts that the agency writes in a clause that they can terminate the agreement at any time or with notice, but the supplier/contractor cannot terminate the agreement.

        Is this legal?
        Is it enforcable?

        Even though the agency will insist it cant be changed, what are other contractors' experiences in getting agencies to change this?
        I have always got it changed to be mutual, e.g. both sides have no notice, 1 week, 1 month etc...

        Comment


          #5
          Originally posted by kirk View Post
          I can't give any notice on my current gig - that's a good thing!
          why? I can see no good reason.

          doesn't help IR35 and doesn't help if for whatever reason you want to leave (hate it, divorce, move home ... whatever .. there are a million different reasons you might unexpectedly want to leave)

          Comment


            #6
            Originally posted by Lewis View Post
            why? I can see no good reason.

            doesn't help IR35 and doesn't help if for whatever reason you want to leave (hate it, divorce, move home ... whatever .. there are a million different reasons you might unexpectedly want to leave)
            But it does help IR35, albeit not in a major way. If your client has to give you notice to move you out when the job's done, it means they have to pay you for working even when there is no work for you to do. Or, you are allowed to sit around doing nothing while you work out your notice and they have to pay you for turning up.

            So what was the definition of Mututality of Obligation again?

            And it's meaningless anyway, since if they want you to go, you'll go and screw the notice period; they'll merely claim some other reason.

            IR35 defences are invariably an accumulation of small things. Don't turn down a significant one without understanding why.
            Blog? What blog...?

            Comment


              #7
              Originally posted by malvolio View Post
              But it does help IR35, albeit not in a major way. If your client has to give you notice to move you out when the job's done, it means they have to pay you for working even when there is no work for you to do. Or, you are allowed to sit around doing nothing while you work out your notice and they have to pay you for turning up.

              So what was the definition of Mututality of Obligation again?

              And it's meaningless anyway, since if they want you to go, you'll go and screw the notice period; they'll merely claim some other reason.

              IR35 defences are invariably an accumulation of small things. Don't turn down a significant one without understanding why.
              The poster said "he can't give notice" i.e. he must work the full contract. I am saying he should have no notice period i.e. can leave anytime. Plus the client and contractor should both have the same terms i.e. no notice.

              What I meant in the last comment was I can see no point in not being allowed to give notice as I understand it is simply a mechanism for an agency to sue you if for whatever reason you cannot complete the full contract. I don't beleive this helps IR35 in any way - but I may be wrong on that.

              I would argue the best solution all round is no notice period with either side about to quit the arrangement at any time.

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