Quitting a contract - implications

[JazzyFry]

Hi,

I've always wondered what would be the potential implications of leaving a contract early.

Aside from an obvious potentially strained relationship:

- Is it all good as long as the notice period is respected?
- Can the client take legal actions if I leave before the end date?
- How to exit gracefully?


I've never considered it, but I'm suspecting some personal life duties might take me out of work in the future, before the end date of my contract.

[GregRickshaw]

The best way is to serve out your notice period if you can, this will give you a graceful exit.
The client has to honour your notice period as being the end date, any contract length is only as good as the notice period, so your client can't and won't do anything.

The implications are virtually none if you do the above, situations change your client will understand you are only there temporarily anyway and your client will understand any working commitments were always transitory.

[Gibbon]

Hi,

I've always wondered what would be the potential implications of leaving a contract early.

Aside from an obvious potentially strained relationship:

- Is it all good as long as the notice period is respected?
- Can the client take legal actions if I leave before the end date?
- How to exit gracefully?


I've never considered it, but I'm suspecting some personal life duties might take me out of work in the future, before the end date of my contract.

I've done this quite a few times for a few reasons. Some because I hated the work, but never let them know that. Some because I was away from home and the 2 year expenses rule was about to kick in (which all understood). However I always left when a delivery was complete in the lull before the next iteration got going, this way you're not leaving them in the tulip. I've been back to most since some several times. If you're competent, don't create waves and get the job done its enough for most.

[TheDude]

The client has to honour your notice period as being the end date, any contract length is only as good as the notice period, so your client can't and won't do anything.

They don't have to sign your timesheets though and that is what matters.

[hobnob]

Some because I was away from home and the 2 year expenses rule was about to kick in (which all understood).

As I understand it, the 24 month rule takes effect from the point where you expect to be there for more than 24 months. E.g. if you've been there for 23 months, then you sign a 3 month extension, you can no longer claim travel expenses from that point (rather than claiming for 1 month and then leaving the contract early).

This isn't directly relevant to the OP's question, but might be important for other people.

[northernladuk]

The client has to honour your notice period as being the end date, any contract length is only as good as the notice period, so your client can't and won't do anything.
.

Yes but a big no. The client does in theory have to honour the period in the contract for it to end gracefully. Thing is in the same contract are clauses about being paid for work done. If they don't offer any work tomorrow you don't earn another penny. So they can give and honour notice of say a month which is notice on the contract but they can pull work tomorrow and you are done. Payment wise effective dismissal despite the contract on notice.

So yes they absolutely can do something and often do. No client wants a contractor around doing nothing so every time you put your notice on be prepared to be walked by the end of the day. Treat everyday they don't as a bonus, not the expected. If you get to work the full notice happy days.

Does that mean the contractor can do the same. No it does not. It's a supplier/client relationship so it's not equal as there are different obligations as set out in the contract. If they offer work you are obliged to do it and they are obliged to pay. They are not obliged to give you work. If you leave without doing the work they offer in the notice period you are in breach of contract and are open to be sued for losses from the client and agent. Rarely happens but good luck getting any monies owed. It's illegal for the agent/client to with hold money owed in lieu of your contract breach but they do and you don't often get it back.

[northernladuk]

As I understand it, the 24 month rule takes effect from the point where you expect to be there for more than 24 months. E.g. if you've been there for 23 months, then you sign a 3 month extension, you can no longer claim travel expenses from that point (rather than claiming for 1 month and then leaving the contract early).

This isn't directly relevant to the OP's question, but might be important for other people.

Correct but the 40% rule is much more relevant in these days of hybrid working. It will be unusual for anyone to fall foul of the 24 month rule what with so much remote being done.

[northernladuk]

- Is it all good as long as the notice period is respected?

Absolutely. That's the point of contracts.

- Can the client take legal actions if I leave before the end date?

Client if you are direct, agent if they are in the loop. Whoever owns the contract you are going to breach. They can sue you for lost income and costs to replace if you breach contract. It's most likely the agency/client will with hold any money you've not been paid if you leave early.

- How to exit gracefully?

Prep a very detailed handover and get it ready as early as you can. Give notice to whoever holds the contract, tell your client through courtesy. Work with the client to see what you can do for them for smooth handover and negotiate your exit time. If the client is happy you to go early then fine. If not you've a problem.

I've never considered it, but I'm suspecting some personal life duties might take me out of work in the future, before the end date of my contract.

Life is more important than contracts. Don't take quitting lightly but it's not the end of the world. Clients are humans they'll moan a bit but nothing has ever stopped because one contractor left. The agents are approaching sub human and will probably be very angry if you breach and will threaten with legal action, hold your money and all sorts. Ignore them, they won't take it any further.

[Gibbon]

The agents are approaching sub human and will probably be very angry if you breach and will threaten with legal action, hold your money and all sorts. Ignore them, they won't take it any further.

Not once in 23 years has an agent ever even come close to that with me. In fact a couple of times they've helped me quit even though going with another agent. I usually get asked how long my new contract is and if it's ok for them to call near the end if they have suitable stuff on their books.

[GregRickshaw]

Yes but a big no. The client does in theory have to honour the period in the contract for it to end gracefully. Thing is in the same contract are clauses about being paid for work done. If they don't offer any work tomorrow you don't earn another penny. So they can give and honour notice of say a month which is notice on the contract but they can pull work tomorrow and you are done. Payment wise effective dismissal despite the contract on notice.

So yes they absolutely can do something and often do. No client wants a contractor around doing nothing so every time you put your notice on be prepared to be walked by the end of the day. Treat everyday they don't as a bonus, not the expected. If you get to work the full notice happy days.

Does that mean the contractor can do the same. No it does not. It's a supplier/client relationship so it's not equal as there are different obligations as set out in the contract. If they offer work you are obliged to do it and they are obliged to pay. They are not obliged to give you work. If you leave without doing the work they offer in the notice period you are in breach of contract and are open to be sued for losses from the client and agent. Rarely happens but good luck getting any monies owed. It's illegal for the agent/client to with hold money owed in lieu of your contract breach but they do and you don't often get it back.

I think you have totally, no I know you have totally misunderstood what I said. The client can't and won't do anything if the contractor has served out his notice period!?

This is what I said to the OP, if they leave gracefully by working their notice period

They weren't talking of sticking the fingers up and walking out.

I really do not understand your response.