Agency refusing to honour 28-day notice period

[BrilloPad]

If you want 50, how much is Gordon taking???

Obviously I would rather be outside IR35. Well actually I want it both ways!! But I have never had a contract terminated early yet - it is rare for me to stay to end of contract - but I do work out my notice period.....

[BolshieBastard]

One utilities company project I worked saw a couple of contracts terminated because the business had 'lost confidence' in the people to deliver. One was actually escorted off site within an hour although he'd done nothing wrong.

All got 4 weeks money in lieu. I think any agent \ client who issues notice and doesnt allow the contractor to work that notice is trying it on by not paying in lieu.

[TheFaQQer]

IMHO, any contractor being paid but not working (or even turning up) is immediately inside IR35 because they have just introduced MOO.

I'm not saying that it's fair, or right, however one of the key criteria for IR35 is whether there is any mutuality of obligation, i.e. whether you get paid for not working, or whether the client needs to keep paying you when there is nothing for you to do. If you are being paid for 28 days notice, and are not working any of them, then if you are investigated, I would expect the chances of you being found inside IR35 are much higher.

As I said earlier, this is irrelevant to the OP, since they are inside IR35 anyway. The only thing that they can really do is to go to court for breach of contract for not giving the 28 days notice. It may be that the court finds in their favour, however, there is always the chance that they still wouldn't award any damages, since the client could give 28 days notice and tell you not to turn up any more.

[TykeMerc]

I'm not convinced about that FaQQer.

Contracts for services very commonly have a notice period irrespective of the customer using the services during the period. Obvious examples are telecoms/ISP's, utilities, housing, mobiles, insurance, support contracts and leases.
I don't see why in a B2B arrangement like our contracts this should be any different.

[TheFaQQer]

I'm not convinced about that FaQQer.

Contracts for services very commonly have a notice period irrespective of the customer using the services during the period. Obvious examples are telecoms/ISP's, utilities, housing, mobiles, insurance, support contracts and leases.
I don't see why in a B2B arrangement like our contracts this should be any different.

If the utility companies do nothing for me, then they don't get paid. If I give them 28 days notice, but don't use their services, then I pay them nothing. The fact that I gave them notice is neither here nor there - they get paid for what they deliver, so £0 (assuming that there is no standing charge).

If I'm on a contract which pays for the days that I work, then if the client does not use my services then I would expect to receive £0 for that time. If I am expecting to get paid for not doing any work, then I'm a disguised permie and so should be taxed accordingly. They can give me any amount of notice - if I am not doing any work for them, then why should my company receive any money for it??

[BrightonBreezy]

see a lawyer. Maybe they can send a them a wind up order...that should get them moving.

Anyone have any recommendations for lawyers who know there stuff in this area?

If you really feel strongly drop me a PM - I have some unconventional methods not fo the faint hearted

Thanks but no thanks. If you'd asked me on Friday, when I learnt this, I would have happily bombed them into the Thames but I've calmed down now.

Chances are that the contract will say that you only get paid for the work that you do - so they could give 28 days notice but tell you not to come in for that time.

Yes, it sucks.

Yes, it's not fair.

However, that's life - suck it up and move onto the next opportunity.

Surely there was a notice period in the contract though? Imagine how the agency would feel if you said "I've found a new role and am clearing off as of now".

Hardly professional.

Yes, there is a notice period and it gives the impression that the service provider would be compensated if his services are no longer required before the contract's term is up.
But as The Faqqer says, it's worthless.
And that's the basis of Huxley's thinking - they themselves don't believe that their own contract clause can be enforced, especially as it's via a company (the brolly) that's not under my control,
Basically, Huxley entered a contract with the clientco that allows the client to end the agreement immediately without any penalty or compensation. Because Huxley are not getting any compensation from the clientco for the early termination, they in turn do not want to compensate me.
It would cost them a fair stack of cash to cough up the notice period so they're not going to unless I force them and they don't believe I can.
And sadly, on reflection now I've calmed down, I doubt I can force them to honour it either.

Yes, it stinks.
Yes, it's misleading to put the notice period in there at all.

I'm taking at as a lesson learnt. I will consult a lawyer but I'm not holding my breath.

The interviews for the next gig are coming in thick and fast so it's time to think ahead to next contract.
Earlier someone mentioned the possibility of a fixed payment for early termination - maybe that's the way to go. Some sort of fixed compensation for "services no longer required" before the contact's term is up.
Anyone heard of such a thing in an IT consultancy contract?

[Beefy198]

Because it's written in your contract of services? (Much like it would be with your utility services who you don't seem to want to pay )

[neilmcl]

I'm not convinced about that FaQQer.

Contracts for services very commonly have a notice period irrespective of the customer using the services during the period. Obvious examples are telecoms/ISP's, utilities, housing, mobiles, insurance, support contracts and leases.
I don't see why in a B2B arrangement like our contracts this should be any different.

They're contracts of service not "services", subtle but important difference.

[Jubber]

I was told last week my contract will not be renewed and the project I am working on is canned.

Strange thing is though is that the client said I can stay till the end of the contract which has 5 weeks to run??!! I would like to be paid off so I can leave but I suppose sitting here looking for work and getting paid isn't bad.

How would one gently suggest that they pay off the rest of the contract without being shown the door instead?

[TheFaQQer]

I suppose sitting here looking for work and getting paid isn't bad.

Apart from introducing mutuality of obligation between the client and yourself, which makes an IR35 defence much harder to prove.

Getting paid for not working is what permies do, not contractors.