Contract Notice and Terms

[sansebastain2011]

Hi,

I have 2 cases:
1. My contract end date is the 25th March 2011, this is the date that I signed with the recruitment agency. But, BAT the company that I work for are claiming that they raised a purchase order which ends on the 11th March, therefore this is my end date. Furthermore, BAT told me this piece of news on the 1st March 2011. When on the 22nd February, they said they would not be renewing my contract and said that I had signed till the 25th march 2011, and they would honour this. This is no longer the case. Therefore, what rights do I actually have? I feel that BAT should have given 30 days notice. Furthermore, they claim the agent should pay till the 25th March - how likely is that??
2. The agents rate is 20% is there a law stating that the rate should not be more than 15%?

[pmeswani]

Hi,

I have 2 cases:
1. My contract end date is the 25th March 2011, this is the date that I signed with the recruitment agency. But, BAT the company that I work for are claiming that they raised a purchase order which ends on the 11th March, therefore this is my end date. Furthermore, BAT told me this piece of news on the 1st March 2011. When on the 22nd February, they said they would not be renewing my contract and said that I had signed till the 25th march 2011, and they would honour this. This is no longer the case. Therefore, what rights do I actually have? I feel that BAT should have given 30 days notice. Furthermore, they claim the agent should pay till the 25th March - how likely is that??
2. The agents rate is 20% is there a law stating that the rate should not be more than 15%?

1. It depends on what is said in your contract about notice periods and whether the client is obliged () to pay you if there is no work available. What the agency told you is one thing, but what has been agreed between the client and the agency is quite another. IMO, the agreement between Client and Agency overrides your agreement with the agency. So, assuming the client keeps you on until the 11th, your contract terminates on the 11th March, unless you have in writing that the client has told you they are looking to keep you on until the 25th March. (However, I don't know what the legal standpoint is on this, but the client can still terminate your contract subject to what is said in your contract).

2. No. The agent can make 100% margin if they want. I am happy to be correct on this.

[Pondlife]

1) There is no need of giving notice if they are simply not renewing. As for the actual date, then technically your contract may expire on date x but if there is no work for you, then the client is most likely not obliged to provide you with any (and therefore payment). Check your contract... It is called Mutuality of obligation (and it's a bad thing - re IR35). In short the client can most likely effectively terminate at any point they see fit. As for the agency paying you for doing no work... you can forget it.

2) no chance.

[Wanderer]

Welcome!

1. My contract end date is the 25th March 2011, this is the date that I signed with the recruitment agency. But the company that I work for are claiming that they raised a purchase order which ends on the 11th March, therefore this is my end date.

The client is wrong. Your contract is with the agency, not the client so don't get confused. If the client want to terminate the contract then they speak to the agency who speaks to you and invokes the notice period/termination clause in your contract.

If the agency has made a cockup in their relationship with the client by extending your contract beyond what the client will pay them for then that's the agency/client's problem not your problem.

Furthermore, BAT told me this piece of news on the 1st March 2011. When on the 22nd February, they said they would not be renewing my contract and said that I had signed till the 25th march 2011, and they would honour this. This is no longer the case. Therefore, what rights do I actually have?

I feel that BAT should have given 30 days notice.

What you feel doesn't matter, what does matter is what it says in your contract. If it says 30 days then they should give you 30 days unless you mutually agree to some other arrangement.

Furthermore, they claim the agent should pay till the 25th March - how likely is that??
2. The agents rate is 20% is there a law stating that the rate should not be more than 15%?

You may have to fight this, but let's be clear. The agency and client's relationship is NOTHING to do with you. What does matter is your contract with the agency. If the agency wail that the client hasn't paid them then that's their tough tulip. They still have to honour their contract with you.

Whether or not you will get your money is another story. Sometimes I'd fight these battles, others I wouldn't. You've got two choices, walk away accepting that no work = no pay so fair enough OR fight them for payment of your contractual notice period. You have to decide now what you are going to do. If you do walk away then do it and don't look back in anger, if you fight then set a limit on how much energy you are going to expend fighting it, don't let it consume your time when you would be better off finding the next contract.

Some of these cases I'd let go, move on and take the next contract but in this case there are two points that spark me up:

1. The agency is taking a massive margin (no law against that of course)
2. The client will put pressure on the agency to settle

Talk to the agency about this and make it plain that the client is on your side (not that it matters contractually but it makes the agency aware that they won't get any goodwill from the client if they don't do the right thing) and they will either pay you for your notice period or you will take legal action.

If they don't pay then read this thread to understand how to proceed. I'd be looking at starting legal action if they don't come to a settlement within 4 weeks, don't let it drag on for months and consume you.

Good luck and let us know how you get on.

[The Agents View]

Welcome!



The client is wrong. Your contract is with the agency, not the client so don't get confused. If the client want to terminate the contract then they speak to the agency who speaks to you and invokes the notice period/termination clause in your contract.

If the agency has made a cockup in their relationship with the client by extending your contract beyond what the client will pay them for then that's the agency/client's problem not your problem.



What you feel doesn't matter, what does matter is what it says in your contract. If it says 30 days then they should give you 30 days unless you mutually agree to some other arrangement.



You may have to fight this, but let's be clear. The agency and client's relationship is NOTHING to do with you. What does matter is your contract with the agency. If the agency wail that the client hasn't paid them then that's their tough tulip. They still have to honour their contract with you.

Whether or not you will get your money is another story. Sometimes I'd fight these battles, others I wouldn't. You've got two choices, walk away accepting that no work = no pay so fair enough OR fight them for payment of your contractual notice period. You have to decide now what you are going to do. If you do walk away then do it and don't look back in anger, if you fight then set a limit on how much energy you are going to expend fighting it, don't let it consume your time when you would be better off finding the next contract.

Some of these cases I'd let go, move on and take the next contract but in this case there are two points that spark me up:

1. The agency is taking a massive margin (no law against that of course)
2. The client will put pressure on the agency to settle

Talk to the agency about this and make it plain that the client is on your side (not that it matters contractually but it makes the agency aware that they won't get any goodwill from the client if they don't do the right thing) and they will either pay you for your notice period or you will take legal action.

If they don't pay then read this thread to understand how to proceed. I'd be looking at starting legal action if they don't come to a settlement within 4 weeks, don't let it drag on for months and consume you.

Good luck and let us know how you get on.

You only get paid for days you work. There's nothing to say that the client has to let you work - you can have a contract with a 2 year notice period, and 2 years left on it - if the client refuses to let you onto site, then they will not be signing your timesheet. Then, you cannot put in a timesheet, and will not be paid. Simple.

This is different if you are opted in though.....

[Support Monkey]

2. The agents rate is 20% is there a law stating that the rate should not be more than 15%?

We can all dream

[Wanderer]

You only get paid for days you work. There's nothing to say that the client has to let you work - you can have a contract with a 2 year notice period, and 2 years left on it - if the client refuses to let you onto site, then they will not be signing your timesheet. Then, you cannot put in a timesheet, and will not be paid. Simple.

Thanks for the reply, we do appreciate hearing the view from the "other side" so to speak even if we do give a bit of a kicking to you guys from time to time.

Given your answer above, and imagining that a contractor has a clause in the contract that says "the agency will give X days notice of terminating the contract" then it is meaningless because the client can terminate their side of the contract without notice? So why do agencies put it in there? I'm genuinely confused here.

This is different if you are opted in though.....

So the implication is that if a contractor doesn't opt-out then they can still invoice for and get paid for the notice period? What would your agency do if a contractor on 1 month's notice had the client give them the "don't come Monday" for no other reason than there was no further work for them to do?