New Contract Question

[Bozwell]

I was offered a new contract role on Thursday, received contract late on Friday and start new role on Monday.

The contract is via a recruitment consultant and the problem is that the client appears to have asked for an extended notice period to be inserted in the contract which wouldn't usually be part of their standard contract (1 week notice for first 3 months, 1 month notice thereafter). My noob questions are as follows (this is my first contract role):

1. Is having a notice period in the contract bad from a IR35 perspective. I think it is and have sent the contract for review at QDOS but because I received it so late on Friday it won't be complete before I begin on Monday.

2. If it is bad what is the best course of action? Should I wait to sign and return the contract until Monday after I have raised my concerns with recruitment company? Is it acceptable to start on Monday without having signed the contract?

3. Obviously the client have asked for this clause so that I don't ditch on them at short notice, so in people experience is there something that can be added to the contract that will be a way around this type of situation what we can both be happy with?

Additional clause as follows:
“This Agreement may be terminated by either party upon giving the other party 1 weeks’ notice during the first 3 months of this Agreement and 4 weeks’ notice in writing thereafter. The Company shall only be required to make payment to the Supplier for Services performed during any period of notice where such Services have been approved, authorised, and submitted in accordance with clause 6 above.”

[SueEllen]

The notice period is not important AT ALL as long as there is one.

As there will be at least one other clause in your contract stating that you can be terminated if you are found to lack the skills claimed, another clause stating that if you act in an unprofessional manner (or similar wording) you can be terminated and another clause that states if your company becomes insolvent you can be terminated.

You need to care more about the work statement clauses, handcuff clause, payment clause, location clause, indemnity clauses, tax clauses, intellectual property clauses.....

[thunderlizard]

received contract late on Friday and start new role on Monday.

Don't be rushed. That is giving you 0 working days to review and take advice on your contract before starting. The agent will be keen to get you on site ASAP, because he wants a done deal ASAP. This also means that this is the exact point at which you have to get what you need into or out of the contract. Tell him work from the assumption you'll start Wednesday or Thursday, giving everybody time to sort the paperwork out to everybody's satisfaction.

[ckms]

I've learned many things in my 1st year of contracting and the hardest lesson was to never start on site while your contract is still being reviewed. The agent was desperate to get me on site then refused to make minor alterations as advised by the reviewer. Once you start you lose all powers of negotiation

[Contreras]

Should I wait to sign and return the contract until Monday after I have raised my concerns with recruitment company?

Only start with the contract you have at hand if you are happy with it in full. Once the agent has you on-site there will be ~0.00001% chance of getting it changed.

Are you sure it's the client asking for this and not the agent attempting to protect their own commission?

My last contract came through stating 4 weeks notice. I said no make it 1 week. Agent came back immediately with 'oh but client has asked for 2 weeks'. Me: well make it 2 weeks then! Later discovered on renewal that client standard terms was 1 week.

[TheFaQQer]

1. Is having a notice period in the contract bad from a IR35 perspective. I think it is and have sent the contract for review at QDOS but because I received it so late on Friday it won't be complete before I begin on Monday.

Notice period has no immediate impact on IR35 - personally I want as short as possible form the client, and as long as possible from me (if any notice) so that it's really obvious that it isn't a contract of employment.

2. If it is bad what is the best course of action? Should I wait to sign and return the contract until Monday after I have raised my concerns with recruitment company? Is it acceptable to start on Monday without having signed the contract?

If you sign, you've accepted the contract through your actions - see Brogden's case for more details about contract acceptance through conduct.

3. Obviously the client have asked for this clause so that I don't ditch on them at short notice, so in people experience is there something that can be added to the contract that will be a way around this type of situation what we can both be happy with?

Offer them one week from their side and no notice from yours. That way your company has to complete the contract, and they can get rid of you as soon as they want to.

Additional clause as follows:
“This Agreement may be terminated by either party upon giving the other party 1 weeks’ notice during the first 3 months of this Agreement and 4 weeks’ notice in writing thereafter. The Company shall only be required to make payment to the Supplier for Services performed during any period of notice where such Services have been approved, authorised, and submitted in accordance with clause 6 above.”

So they aren't going to pay you for any work that you do in the notice period anyway - which means that it's effectively a one day notice period.

[Contractbound]

Only start with the contract you have at hand if you are happy with it in full. Once the agent has you on-site there will be ~0.00001% chance of getting it changed.

Are you sure it's the client asking for this and not the agent attempting to protect their own commission?

My last contract came through stating 4 weeks notice. I said no make it 1 week. Agent came back immediately with 'oh but client has asked for 2 weeks'. Me: well make it 2 weeks then! Later discovered on renewal that client standard terms was 1 week.

Some good points raised. I would say as this is his first contract he has no wiggle room to get around this. You will have to bite the bullet and go for it and learn from it so that the contract is pinned down before you start next time. The only alternative is try and negotiate tomorrow morning and start later but you may risk losing that first contract which they say is the hardest part of contracting (landing the first one).

Good luck

[psychocandy]

AS others have said, contract Friday start monday = no way Jose. Get it reviewed first. IF you need to make changes, agent will be keen to sort to get you all sorted and on site.

Once your onsite, your concerns will be forgotten. Hes got you on site so wont care at this point. Whatever you ask will be be "sorry cant do that" because its too late.

[northernladuk]

AS others have said, contract Friday start monday = no way Jose. Get it reviewed first. IF you need to make changes, agent will be keen to sort to get you all sorted and on site.

Once your onsite, your concerns will be forgotten. Hes got you on site so wont care at this point. Whatever you ask will be be "sorry cant do that" because its too late.

This. QDOS do a 24 hour turn around, which in my experience has been a lot quicker. The agent will be losing revenue as well so should give it priority as well so no excuse for not getting it done even if you don't have much time.