Working before contract was signed. What are my options?

[Pops]

Hi,

I have started working a new contract prior to signing anything, under an understanding with the agency that I will work without a contract until it clears (or is negotiated to clear) IR35. It was assumed by both sides that only minor corrections will be required. Call me an optimist...

The contract has been checked by B&C and according to them needs a complete rewrite - the contract is completely unsuitable to contractors and the agency doesn't seem to know what they are doing in that respect.

The agency is keen on keeping me on, but I am not sure how prepared they are to getting a completely new contract drawn up (which is what B&C think they should be doing) or how long that will take.

What should I do?

I was thinking of working till the end of the week waiting for the dust to settle and a new, appropriate contract to be drawn. Does this make sense?

I would also like advice of what to do in case the agency is not able to draw a new contract in this time frame. How can I get my money from them, seeing as no contract was signed?

What would the ramifications of me going to the client directly? Is it legal? What would I be exposing myself to? Where would I be able to get a sample contract for such a thing?

Thanks,
Pops

[malvolio]

Going direct will not be as easy as you might think. The Agency will want their pound of flesh regardless; having started work, you have effectively accepted the terms of whatever contract was on the table at that time.
Of course you can mutually renegotiate and draw up a new contract, but that will not allow an easy route to going direct to the client. On the off-chance it can be done, though, you should go have a nose around the PCG website www.pcg.org.uk (you are, of course a member, like all right-thinking contractors...? ) and use one of their draft contracts

However, since you are now disputing the contract on offer, staying on site might be a bad idea, since you risk accepting the bad contract by default. Talk to the client and explain the problem, then stay away until things are resolved. There is a slight but nevertheless real risk that you will simply be dropped by the client and most likely lose out on the work you've already done, so keeping them onside is pretty much vital: they have much more influence over the agency than you do.

Good luck - and next time, don't start until you have a signed contract, or have learned enough to be able to make your own assessment.

[HairyArsedBloke]

Hi,

I have started working a new contract prior to signing anything, .....

What should I do?

Stay at home, go to the beach/pub/park/etc. Do not enter the clients building. Without a contract or other documentation you have no reason to be there. If something happens then it's going to be a legal nightmare.

[expat]

Hi,

I have started working a new contract prior to signing anything, under an understanding with the agency that I will work without a contract until it clears (or is negotiated to clear) IR35.

The contract ... needs a complete rewrite...

The agency is keen on keeping me on, but I am not sure how prepared they are to getting a completely new contract drawn up

they agreed to make it IR35-OK. Now they find that takes a bit of work. Fortunately they are keen on keeping you.

So what's the problem? Oh yes, the problem is that you are ready to lose a fortune in voluntary taxation in order to keep the agency from the pain of having to keep their promise.

Right.

[BrilloPad]

and next time, don't start until you have a signed contract, or have learned enough to be able to make your own assessment.

Very good point

[Pops]

malvolio: Thanks for the advice. I know that starting before signing the contract was not the best move (understatement...), but I was really keen on starting to work, as I have not been working in several months.

The contract only started this week, so not much has been lost in time or money. I will go in to have a word with the client and explain things over and get him on my side, and leave as soon as that is done.

[Cowboy Bob]

I you have started work, you have implicitly agreed to work under the contract originally presented. The agency don't have to (and probably won't) change you on to a new contract less favourable to them as they've got no incentive to. They're laughing all the way to the bank...

[blacjac]

I you have started work, you have implicitly agreed to work under the contract originally presented. The agency don't have to (and probably won't) change you on to a new contract less favourable to them as they've got no incentive to. They're laughing all the way to the bank...

Not if you told them in writing (or email) that you were only starting work on the basis that the contract would be rewritten to comply with IR35.

Which the OP indicated they had.

[Pops]

Not if you told them in writing (or email) that you were only starting work on the basis that the contract would be rewritten to comply with IR35.

Which the OP indicated they had.

As blacjac pointed out, I have indeed told them in email and have their agreement to this in their reply. So, there is no implicit agreement to the contract. Which still leaves me working without a contract...

The client is pushing the agency to get things sorted and they seem to think that it will be a simple matter of getting a sample contract from B&C, who are not so inclined (as IR35 experts and not company lawyers...).

[malvolio]

As blacjac pointed out, I have indeed told them in email and have their agreement to this in their reply. So, there is no implicit agreement to the contract. Which still leaves me working without a contract...

The client is pushing the agency to get things sorted and they seem to think that it will be a simple matter of getting a sample contract from B&C, who are not so inclined (as IR35 experts and not company lawyers...).

Offer them the standard PCG one. IR35 compliant (assuming you are of course) and commercially valid, acceptable to both REC and ATSCo. B&C will be happy with it.

www.pcg.org.uk