Client terminating without notice

[amoeba]

Client let me know over the weekend not to come in on Monday, as they were terminating with immediate effect. They dont believe a contract exists between them and the agent, and so even though I has signed a contract with 4 weeks notice - tough.

Do I have any recourse?

[northernladuk]

In all reality probably not. Speak to the agent first to find the exact situation. There maybe something in that but the actual reality of anything coming from it is pretty slim. Normally in these situations the only way to get anything is a messy legal process and no one tends to be bothered with that.

Did they explain why they are terminating you? Performance problems or budget type thing?

Get the score from your agent first thing though.

[Wanderer]

Client let me know over the weekend not to come in on Monday, as they were terminating with immediate effect. They dont believe a contract exists between them and the agent, and so even though I has signed a contract with 4 weeks notice - tough.

Do I have any recourse?

The consensus here is probably going to be that you should just walk away and concentrate on finding your next contract.

If you feel like picking a fight then you could raise an invoice to the agency for the notice period and fight it though to small claims court if they refuse to pay.

[MarillionFan]

What is their reason for termination?

Do that have a contract that says 'No notice' because that normally means you cannot serve notice as opposed to there is no notice.

[Sockpuppet]

Bear in mind MOO means that even if your contract is cancelled with 4 weeks notice they can ask you to not come in for those 4 weeks.

It's quite possible to have a contract in place and have no work to be fulfilled which is the same as zero notice. So IR35 contracts are good on the whole but also have some downsides.

[CheeseSlice]

Is this a new contract? You don't state how long you have been in this contract for. Could have been signed on Friday and cancelled over the weekend for all we know.

[Wanderer]

Bear in mind MOO means that even if your contract is cancelled with 4 weeks notice they can ask you to not come in for those 4 weeks.

My view of a typical Mutuality of Obligation clause in a contract is that it creates a MOO for the duration of the contract only. The MOO that we avoid (for IR35) is any ongoing obligation beyond the fixed term of the contract as this would point to a permie type relationship where the contract is open ended.

Really, I can't see how you could have a contract where you are not obliged to do the work? It would be a non-contract, surely.

In any case, this is one that would have to be decided by the courts if amoeba wants to fight it rather than walking away. I'd be tempted to fight it just to get this issue clarified, in court if necessary.

[malvolio]

My view of a typical Mutuality of Obligation clause in a contract is that it creates a MOO for the duration of the contract only. The MOO that we avoid (for IR35) is any ongoing obligation beyond the fixed term of the contract as this would point to a permie type relationship where the contract is open ended.

Really, I can't see how you could have a contract where you are not obliged to do the work? It would be a non-contract, surely.

In any case, this is one that would have to be decided by the courts if amoeba wants to fight it rather than walking away. I'd be tempted to fight it just to get this issue clarified, in court if necessary.

What;s to be larified?

He won't get paid regardless, there won't be any signed timesheets forthcoming and those will be part of the contractual payment terms.

Mutuality means being paid or being allowed to charge when there is no work to be done or when you aren't needed to be there, such as over Christmas. Which includes charging notice periods after the client has terminated the work.

File this in the anti-IR35 folder as evidence of commercial risk and get on with being a contractor. Sh!t happens, live with it.

[prozak]

being paid for a notice period is a standard part of any consulting contract so should have no impact on IR35. Even if you don't do the work.

I'd invoice the agency for the notice period.

Fighting it through the courts isn't that big a deal since you can now do most of it online.

[northernladuk]

being paid for a notice period is a standard part of any consulting contract so should have no impact on IR35. Even if you don't do the work.
I'd invoice the agency for the notice period.

Fighting it through the courts isn't that big a deal since you can now do most of it online.

No it isn't.

But I would also trying billing them just as a way of sticking the knife in and reminding agents they can't get away with this crap.