Ex Colleague offered role now Client has cancelled project

[MasterP0]

Hi All,

Posting on behalf of an ex colleague.

It's his first foray into the Contracting world, he was lucky enough to be offered a 1 year contract (not Fixed Term) with a view to perm, but before he could start he was required to serve 3 months notice period for his perm role, which he did, then went on holiday to his home country and returned early so as to prepare for this new role.

He was due to start on tomorrow (Monday). On Friday he gets a call to say Client has cancelled their project, do not come on Monday and we don't have work for you. He signed the 1 year contract before resigning from his perm job. He's asked me this morning if he can get any compensation?

I asked him to reread his contract and look for anything that is a "get out clause" for the company and he says the only thing in there is how much notice period is required upon termination from either said.

Obviously he is now having to find another job, but what are his rights, if any, and can he claim for compensation?

Thoughts?

Thanking you.

[stek]

Nothing, tell him to move on, no work no pay, tough titty....

[cojak]

Find another contract.

He's a contractor now, this is what happens.

If he wants another job, go permie (Lord knows what's going to happen when he has to deal with tax and IR35...).

[BlasterBates]

He could probably go back to his old job. The market is a bit mixed though generally bouyant, but if he doesn't really have a warchest that might be his best option. If I were him I'd be on the blower on Monday, with an expectation of at least one telephone interview by the end of the week, if not it looks like it would be several weeks or months to find something.

Forget compensation, this is a contract which will probably contain clauses that will mean it's an uphill battle. It would more or less have to be stated explicitly that compensation would be forthcoming in the event of a project cancellation. A notice period isn't sufficient as there is usually a condition that agency will only pay for work done, and have no obligation to pay if there is no work.

[BrilloPad]

Why can't he post on his own?

[northernladuk]

Why can't he post on his own?

This. I bloody hate these 'on behalf of a mate's posts.

[BrilloPad]

Why can't he post on his own?

This. I bloody hate these 'on behalf of a mate's posts.

I made my post on behalf of you!

When I had got a response to my first question I was going to point out the answer is really obvious. Very upsetting and I feel sorry for them. Good suggestion to go back to permie roll though - seems like the best place for them. But then permie is probably the best place for me - contracting is very tough and I don't think I am tough enough any more.

[northernladuk]

It's his first foray into the Contracting world, he was lucky enough to be offered a 1 year contract (not Fixed Term) with a view to perm,

Might be worth pointing out to your colleague this isn't lucky. It's very bad. Might not matter in the future but a contract with a view to perm is an IR35 problem.

[MasterP0]

This. I bloody hate these 'on behalf of a mate's posts.

You're of course welcome to ignore these types of posts Mr Sunshine a.k.a. Nothern!