Contract with no notice period

[XLMonkey]

Notice periods, whether written into the contract or not, are largely irrelevant if:
- the general terms of the contract would put it outside IR35
- the payment terms are time and materials only (i.e. no milestone elements or major capital assets being supplied)

A key IR35 pointer, as most of you know, is mutuality of obligation. This means that, there is no obligation for the customer to give you work just because you have a contract with them. This applies regardless of whether you have a notice period or not.

So, imagine you have 4 weeks notice in your contract.
Customer says: Sorry, project's been cancelled, we have no work for you
You say: Understand, but I'm on four weeks notice, so you have to pay me for this time
Customer says: No, I don't. I have no work for you. The contract makes clear that I have no obligation to provide you with work. Therefore, just because I've given you 4 weeks notice doesn't mean I have to pay you for this time.
You say: Oh, bu**er. Bye then

Imagine you have no notice in your contract.
Customer says: Sorry, project's been cancelled, we have no work for you
You say: Oh, bu**er. Bye then


As a result, from a contractual point of view the notice period, whether present or not, is irrelevant. Put it in, take it out. Doesn't make a blind bit of difference.

There's a moral argument that the client may accept (that its a bit unfair to drop someone with no notice). However, you need to be clear that this is entirely at their discretion. It isn't a right that you have under the contract.

[TheFaQQer]

As a result, from a contractual point of view the notice period, whether present or not, is irrelevant. Put it in, take it out. Doesn't make a blind bit of difference.

Theoretically, there is a difference if the client then changes their mind.

If the contract is immediately terminated, then you can do off as soon as possible and get a new role (theoretically, current market excepted).

If you are given 28 days notice, during that time, the client could find you work to do under the current contract and expect you to be available to do it.

[rootsnall]

Theoretically, there is a difference if the client then changes their mind.

If the contract is immediately terminated, then you can do off as soon as possible and get a new role (theoretically, current market excepted).

If you are given 28 days notice, during that time, the client could find you work to do under the current contract and expect you to be available to do it.

That is the same reason I think you are silly signing a long contract with no notice period on your side.

[SalsaFever]

well, does it matter if you have 30 days notice or not at all?

You and your agent won't claim any money unless the client signed the time sheets.

Last month I witnessed similar situation here in the client company I work for. Some contractors were shown to door, without notice, based on an excuse saying 'the project is canceled'.

The client told them no more work to do, they are not required come to office anymore.

So next day nobody shown up, no timesheets signed.

The agent (which is also my agent) shut the mouth, just because he has other contractors inside and wouldn't risk to relations with a lucrative client...

So those poor fellas did not get their notice time paid so far..

Be careful: The notice period signed by the client company (7 days) are not overlapping with the notice periods signed by contractors (1 month).

So always double check if the notice periods and contract duration provided by your agent are matching with their underlying contract with the client.

Usually agents are over-promising to the contractors, whereas they are under promising the clients.