can they do this?

[treefingers]

Hi just come across this site & lots of useful information so hoping someone could advise on my current issue.

My current contract comes to a end in June 06. On Feb 14 I would have been here for 1 year so I have just been told that the company I am working for are cancelling my current contract this Friday & then re-employing me 1 week later.

They are very open to say they are doing this to avoid contractors rights that come into effect after 1 year of employment but am I right in thinking that as a LTD company I am not entitled to those rights? Also is this common practice these days?

[Lucifer Box]

Hi just come across this site & lots of useful information so hoping someone could advise on my current issue.

My current contract comes to a end in June 06. On Feb 14 I would have been here for 1 year so I have just been told that the company I am working for are cancelling my current contract this Friday & then re-employing me 1 week later.

They are very open to say they are doing this to avoid contractors rights that come into effect after 1 year of employment but am I right in thinking that as a LTD company I am not entitled to those rights? Also is this common practice these days?

Forget about why they are doing this for the moment (although you are correct, the stated reason is complete bollox) and concentrate on what your contract states. Does your contract allow for this notice of termination to be given? If it does, there's not much you can do. If it doesn't, it's up to you whether you go along with it or say no.

You also seem a little confused about your own situation as you talk about being re-employed afterwards. Do you mean they will offer you a permie position?

[Mordac]

Agree with LB, it sounds fishy. What does your contract say? Is it with an agency? Is it the agency saying this (in which case I'd be doubly suspicious as they'd know you have no employment rights, they'd have written that into your original contract!)
I'd want a pretty good reason for agreeing to waive away a 4 month contract, which is in effect what you're being asked to do.
And to answer your question "can they do this?", the answer is "only if you let them".

[treefingers]

Under the Current contract they have to give 1 weeks notice which they did by advising my agency. I am pretty sure they are legally allowed to do this although there utter bastards.

They are just giving me a new contract with the same terms & finish date as before, not offering perm.

[Lucifer Box]

If your current contract says you can be given one week's notice, there's not really much you can do unless it says there are limited reasons as to why notice can be given (e.g. gross misconduct). If your contract genuinely says you can be given one weeks notice for any reason (or no reason) you are stuffed.

Of course, you are under no obligation to sign the follow up contract and you are entitled to say you are not happy with the situation. If you are genuinely needed by the client, this is an opportunity to renegotiate your rate (upwards). If nothing else, you might be able to persuade the agent to reduce their margin or maybe change the one week notice clause.

[Mordac]

Let me guess - it's an outsourcer? You still need to get a good explanation as to why they want to cancel 4 months of your contract. And "because we say so" isn't a good explanation. They sound like a bunch of right cowboys. Are there any other contractors on site?

[Lucifer Box]

Hang on a mo, Mordy, his current contract finishes in June and the replacement finishes in June as well so he isn't losing four months, he's losing one weeks pay in the gap between the two.

One other thing to consider, are you certain you will get a new contract until June or might it be a case of "sorry, changed our minds now".

At the end of the day, if your contract says "we can give you a week's notice at any time for any reason, or even for no reason" all you can do is decide whether to go along with it quietly or make a fuss and try and get a better deal on the follow on contract (if there is one).

And as we all said, the stated reason is complete rubbish, but you are unlikely to persuade a major outsourcer that uses an army of temps that they are wrong.

[treefingers]

Let me guess - it's an outsourcer? You still need to get a good explanation as to why they want to cancel 4 months of your contract. And "because we say so" isn't a good explanation. They sound like a bunch of right cowboys. Are there any other contractors on site?

The explanation is that they dont want contracters to be enititled to any rights they get after 1 years continous employment. It is nothing to do with my agency all coming from the company.

[Lucifer Box]

The explanation is that they dont want contracters to be enititled to any rights they get after 1 years continous employment. It is nothing to do with my agency all coming from the company.

That isn't the case at all, but you're unlikely to be able to persuade them otherwise. You could anonymously report them to the DTI because that is sharp practice and somewhat frowned upon these days. A letter to Watchdog might provide some amusement as well.

Their reasoning is totally wrong, but if your contract says you can be given a week's notice on a whim, that's how it is. You're a business now and you signed up on behalf of your business with your eyes open. Be more careful with the next contract you sign up to.

[OrangeHopper]

Agreed that what the company is saying is complete bollocks but does it really matter?

As long as you get a new contact in advance of being "terminated" then you are simply being forced to take a week's holiday.