"Personal undertaking statement"

[norrahe]

Just recently secured a contract and now going through the process of getting documentation reviewed.

As well as my usual contract I got given a "personal undertaking document" to sign.

Now this is something I have not seen before in my years of contracting but the crux of the document is that is identifies me as an individual separate from the company and contains terms I would normally see in the main business to business contract.
there is also an indemnity clause which seems to infer that I personally would be responsible should "anything" go wrong, which could also infer if I decided to leave the contract they would chase me for payment for the rest of it despite there being a notice clause in the main contract.

Has anyone come across this before?

[DaveB]

Just recently secured a contract and now going through the process of getting documentation reviewed.

As well as my usual contract I got given a "personal undertaking document" to sign.

Now this is something I have not seen before in my years of contracting but the crux of the document is that is identifies me as an individual separate from the company and contains terms I would normally see in the main business to business contract.
there is also an indemnity clause which seems to infer that I personally would be responsible should "anything" go wrong, which could also infer if I decided to leave the contract they would chase me for payment for the rest of it despite there being a notice clause in the main contract.

Has anyone come across this before?

Not come accross it myself. Doesnt sound good at all. Personally I'd tell them to sod off. Have you got contact details at the client? If the pimp wont budge on it, it might be worth letting them know there are contractual issues with the agency that may mean you can't accept the gig.

[tractor]

...

Just recently secured a contract and now going through the process of getting documentation reviewed.

As well as my usual contract I got given a "personal undertaking document" to sign.

Now this is something I have not seen before in my years of contracting but the crux of the document is that is identifies me as an individual separate from the company and contains terms I would normally see in the main business to business contract.
there is also an indemnity clause which seems to infer that I personally would be responsible should "anything" go wrong, which could also infer if I decided to leave the contract they would chase me for payment for the rest of it despite there being a notice clause in the main contract.

Has anyone come across this before?

Draft a personal undertaking document of your own stating the complement of everything in theirs and ask the pimp to undertake that if the PM sucks, the plan is tulip and goes wrong or it rains that the pimp will be personally responsible.

[norrahe]

Not come accross it myself. Doesnt sound good at all. Personally I'd tell them to sod off. Have you got contact details at the client? If the pimp wont budge on it, it might be worth letting them know there are contractual issues with the agency that may mean you can't accept the gig.

The bullying tactics have not helped either, I've told them to sod off on several issues already and they are threatening to withhold the contract if I don't sign the opt out clause.

My Dutch accountant is reviewing the contracts, he also happens to be a tax lawyer with a sideline in contract law.

Haven't got contact details of the client, but agreed via e-mail the agency was my sole representative, not sure if this is summat I can retract.

[jmo21]

Funnily enough, a contractor I am working with here at client co described a similar situation yesterday.

It was direct with a company, and they were trying to get him to personally sign something similar to what you describe.

He declined in the end.

[tractor]

..

The bullying tactics have not helped either, I've told them to sod off on several issues already and they are threatening to withhold the contract if I don't sign the opt out clause.

My Dutch accountant is reviewing the contracts, he also happens to be a tax lawyer with a sideline in contract law.

Haven't got contact details of the client, but agreed via e-mail the agency was my sole representative, not sure if this is summat I can retract.

If ever I feel the need to agree to this, I always put the caveat 'provided I receive written confirmation that you have provided my cv to the client in respect of this role within xx days'

[SueEllen]

norrahe I sent you a PM.

However just make sure that whatever you sign personally is also included in the business contract, and that the documents are amended so it's clear they will chase the business first if any of it's workers breach the conditions.

After all the business is the one who has the insurance and the one who is likely to be able to pay them. Agents seem to forget people with no assets can't pay anything.

If they refuse to amend the main contract than don't agree to anything personally.

[Gordon Ice]

Personal shouldn't come into to it...

The reason you operate through a Limited Company is (the clue is in the title) because you have "limited" liability should anything go wrong. Back this up with relevant insurances and working practises and you should be safe commercially and from Hector (IR35).

There's a lot of this type of thing going around.. it seems the Pimps are getting really twitchy in the current climate and want push ALL risk down the chain to you.

Personally I'd tell them to go jump.

[Gentile]

Just recently secured a contract and now going through the process of getting documentation reviewed.

As well as my usual contract I got given a "personal undertaking document" to sign.

Now this is something I have not seen before in my years of contracting but the crux of the document is that is identifies me as an individual separate from the company and contains terms I would normally see in the main business to business contract.
there is also an indemnity clause which seems to infer that I personally would be responsible should "anything" go wrong, which could also infer if I decided to leave the contract they would chase me for payment for the rest of it despite there being a notice clause in the main contract.

Has anyone come across this before?

I've only ever seen that once before, and that was when I was leaving my last permie job. They asked me to sign a document that said I would indemnify them for any losses they may incur as a result of my discussing their intellectual property with anyone at any point in the future. I of course said no.

Never indemnify anyone for anything, even if you're 100% sure that what you're being asked to indemnify them against is something that's 100% within your control and 100% unlikely to happen. "Indemnify" is legalese for "I will pay you if X happens". If they need someone to pay money when things go wrong, then it's an insurance company they need, not a contractor. Most things I'd come and go on. This isn't one of them. I'd walk away no matter how good the rate was if anyone wanted me to sign something of that nature as a company undertaking, let alone a personal one.

[norrahe]

norrahe I sent you a PM.

However just make sure that whatever you sign personally is also included in the business contract, and that the documents are amended so it's clear they will chase the business first if any of it's workers breach the conditions.

After all the business is the one who has the insurance and the one who is likely to be able to pay them. Agents seem to forget people with no assets can't pay anything.

If they refuse to amend the main contract than don't agree to anything personally.

The reason you operate through a Limited Company is (the clue is in the title) because you have "limited" liability should anything go wrong. Back this up with relevant insurances and working practises and you should be safe commercially and from Hector (IR35).

There's a lot of this type of thing going around.. it seems the Pimps are getting really twitchy in the current climate and want push ALL risk down the chain to you.

Personally I'd tell them to go jump.

I have a feeling that this is what will happen once again I will be at an impasse.

I don't have to worry about hector as I operate within Dutch tax law. Under Dutch employment law I have to have an employment contract with myco so MyCo is legally responsible for me.

The Dutch side have said that this is not relevant to me as this is a business to business contract.