Contract terminated before start date

[callan]

I was recently made redundant from a perm job. Since then I've been job hunting for permanent and contract IT work.

After three interviews, which included a technical test and agency reference checks, I was offered a 6 month contract on a daily rate to start next month.

I accepted the contract offer. I returned the signed contract by recorded delivery which included my umbrella company details.

Now the recruitment agent calls me to say their client has withdrawn their offer. No official reason given.

Are they in breach of contract? And can I claim compensation? The Notice period on the contract states two weeks.

I've not, as yet, received any written confirmation from the recruitment agent that their client has withdrawn their offer. And I doubt I will.

Is it worthwhile pursuing a claim for damages from this agency?

[malvolio]

Tough. tulip happens. Either move on, or spend many pointless hours and a lot of cash fighting for something you can't win. You've done no work, the contract hasn't started, nobody owes you any money.


And welcome to the realities of contracting!

[KentPhilip]

Were you given a start date and location?

Perhaps you could try turning up for work. If they are disorganised they might not know you were called off by the agency.
Then you could deny the conversation occurred with the agency, and sue the agency based on the contract AND the fact that you actually did some work.

But it might not work.

[callan]

I've been contracting for more than a decade so I'm well used its realities. In all that time I've never had a signed contract offer withdrawn at the last minute. And if it was the other way round the agency would/could sue me for breach of contract.

[callan]

yep it states the start date and location. I could turn up but I'd have to get past the high security set up first so I doubt I'd get very far.

[MrRobin]

My current contract says a few lines such as

The company [them] reserve the right to terminate the contract immediately within the first 2 weeks of the start date

The company reserve the right to terminate the contract if for whatever reason the client fails to pay the company or the client fails to complete the contract with the company

blah blah blah... they both copmbine to prevent them loosing any money if the client pulls out.

Perhaps your contract says something similar?

[Lockhouse]

Tough. tulip happens. Either move on, or spend many pointless hours and a lot of cash fighting for something you can't win. You've done no work, the contract hasn't started, nobody owes you any money.


And welcome to the realities of contracting!

Seconded. Harsh but business is business. Don't take it personally.

[gables]

Tough. tulip happens. Either move on, or spend many pointless hours and a lot of cash fighting for something you can't win. You've done no work, the contract hasn't started, nobody owes you any money.


And welcome to the realities of contracting!

Agreed no work has been done...

..... And if it was the other way round the agency would/could sue me for breach of contract.

...but let's imagine it was the other way round, can the agency really sue? and if they can surely the contractor can?

I do agree with others that this is a risk of being in business and you won't get very far.

[callan]

...............if the Consultancy fails to give written notice the Consultancy shall be deemed to have caused a breach of the terms of this contract and the Agency shall have the right to pursue the Consultancy for any damages suffered as a result of such a breach. The Consultancy also accepts that the Agency has the right to offset any losses sustained as a result of the Consultancy’s actions, breach or unsatisfactory performance from any payment due to the Consultancy.

(a) Unless otherwise stated in the Project Schedule or in clauses 12(b) or 12(c) below, there is no provision for early termination of this contract by either party.

It goes on to say where the services of the Consultancy are dispensed with by the Client or the contract is terminated by the Agency payment will be made only for those sections of the project which have been approved by the Client. However, the Agency shall only be required to pay to the Consultancy in respect of sums due to the Consultancy only such amounts as the Agency can recover from the Client.

[oraclesmith]

Which IMHO means that unless you've completed any project work for the client, the agency can't get anything from them. In turn, you will get nothing from the agency. Forget it.