Received first contract from agency - has almost no terms - is this typical?

[LJM]

Hi, sorry if this is a naive newbie question but I have searched and read all over the place and just can't get a handle on it. I've worked as a sole trader until now (business analyst), working for old contacts and keeping things pretty informal as far as contracts go. Took on my first agency contract last week and expected things to be a lot more formal. But I received the contract from the agency last thing Friday (I start tomorrow) and it seems to consist of nothing more than:
- Name of client and my (brand new) limited company
- Day rate
- Contract start and end date
- Invoicing/Payment period
- Services (just 'Business Analyst')
- Location
- Notice period for agency or myself (1 week)
- Insurance levels
- Opt-out from agency regulations

Am I totally naive to just work on this basis rather than sending back my own terms regarding my responsibilities, liabilities etc (e.g. based on the IR35 -proof contract template from PCG)? It's only a 3 month contract and I'm just not sure whether I'll get laughed out of the agency if I send them a 15 page document to agree to before tomorrow. It's hard to know whether the agency is trying it on because they know I'm a newbie or if this is totally standard stuff.

Thanks in anticipation of your help!

[TheFaQQer]

It's nice to have milestones and deliverables defined in the contract, but to me what you describe seems fairly standard.

[SteelyDan]

Am I totally naive to just work on this basis rather than sending back my own terms regarding my responsibilities, liabilities etc (e.g. based on the IR35 -proof contract template from PCG)? It's only a 3 month contract and I'm just not sure whether I'll get laughed out of the agency if I send them a 15 page document to agree to before tomorrow.

I think it would be difficult to get them to not only read, but agree with your terms. Your own co terms usually apply when you are in a direct b2b agreement, as opposed to via agency.

As TF mentions, looks standard to me.

[northernladuk]

Get your contract checked by the professionals before you sign it. If/when you get PI/PL insurance you can get it along with free contract checks with QDOS. Baur and Cotterel also offer contract check.

You need to get it checked for IR35 if you are new to the game.

[norrahe]

Seems to be pretty standard, have you had it checked to see if it passes muster for IR35?

[LJM]

Seems to be pretty standard, have you had it checked to see if it passes muster for IR35?

Thanks everyone - that sounds reassuring. I haven't had it checked for IR35 as it didn't even look like a contract to me to be honest with no legal wording whatsoever - I thought I needed to bolster it with my own terms otherwise any solicitor would laugh me out of here. I guess I'll submit it as it is.

[Hex]

Thanks everyone - that sounds reassuring. I haven't had it checked for IR35 as it didn't even look like a contract to me to be honest with no legal wording whatsoever - I thought I needed to bolster it with my own terms otherwise any solicitor would laugh me out of here. I guess I'll submit it as it is.

You might want to search on this forum for "opt out" and "agency regulations" before you agree to opt out of them yourself. A lot of people think it's best not to. DYOR.

[LisaContractorUmbrella]

LJM - what you have described sounds like an assignment schedule rather than a business to business contract - if you are working through your own Limited company you should question whether you have been sent the correct paperwork. If you are working through an umbrella company then the b2b contract has probably been sent to them.

[LJM]

On the contract Thanks LisaContractorUmbrella. I've spoken to the PCG helpline who agreed it sounded like just a front sheet which should have proper T&Cs attached - I've now queried Reed, but apparently this is the whole contract. The Reed guy talked a lot about how they'll pay me before they get money from client etc but what's this worth if not even detailed in writing? On the plus side, there doens't seem to be any restriction on working direct for the client later (I guess that's in the client side of the contract). I'm inclined just to go for it as they're a big agency so I can't imagine I'm the first person to accept their contract?

On the Opt-out Hex - thanks, for the tip but I'm totally confused (after a lot of reading around) - lots of personal advice on forums not to opt out and yet PCG says that I should opt out and most members do, it's an IR35 risk blah blah. I've already met the client so apparently it's invalid anyway...

On IR35
I know this must be a idiotic question, but what use is an IR35 contract review if very few agencies allow you to amend the contract? A nice man at QDOS suggested I create a 'Confirmation of Working Practices' document and get the client to agree that it's accurate and this will be as good as a contract in an investigation, which sounds a good option if you're forced to use the agency terms. What do you think?

[TheFaQQer]

I know this must be a idiotic question, but what use is an IR35 contract review if very few agencies allow you to amend the contract?

How many have you dealt with that won't modify their terms? One of the things about being in business is that you have to negotiate with people - if the agency won't negotiate on contract terms, then the next step is to say that it's an IR35 fail so your rate has to go up by 20% to compensate....

I've never had an agency refuse to modify the contract.

A nice man at QDOS suggested I create a 'Confirmation of Working Practices' document and get the client to agree that it's accurate and this will be as good as a contract in an investigation, which sounds a good option if you're forced to use the agency terms. What do you think?

I think it's a great idea. If you find a client who will do it, keep them - they're worth their weight in gold.