Signed Contract - Project cancelled after startdate, any rights?

[Veetee]

Hi Guys
I had a signed contract from the agency with the start date in February....Just a day before start, the agent phoned me to inform that the project was delayed by a week, and then every week it was the same story....I called the end client directly now and understood the project was scrapped a month ago.The client informed me that the agency was fully aware the project was scrapped, however they continued to bluff for over a month, so thats quite painful as i could;ve continued searching had I known the real picture a month ago.


I know some people asked this question before but they havnt had signed contracts but just the offers...
However, in my case, as the agency signed a contract with me with a start date and it had a 4 weeks notice clause from both parties, do I have any legal rights to invoice?

many thanks,
veetee

[pdr]

Unfortunately, you might be chasing a lost cause. Contracts often state that if there is no work, agency is not obliged to pay you, regardless of whether the contract is signed. Its a hard lesson but I would as they say keep looking until bum on seat. I suspect the agent kept you out of the loop to in the hope that the end client would find the budget.

[cojak]

Unfortunately, you might be chasing a lost cause. Contracts often state that if there is no work, agency is not obliged to pay you, regardless of whether the contract is signed. Its a hard lesson but I would as they say keep looking until bum on seat. I suspect the agent kept you out of the loop to in the hope that the end client would find the budget.

WHS - Particular the 'keep looking' bit.

[northernladuk]

Unfortunately, you might be chasing a lost cause. Contracts often state that if there is no work, agency is not obliged to pay you, regardless of whether the contract is signed. Its a hard lesson but I would as they say keep looking until bum on seat. I suspect the agent kept you out of the loop to in the hope that the end client would find the budget.

The bit pdr is talking about and must be in every contract of IR35 reasons is Mutuality of Obligation which states the client isn't obliged to give you work and you are not obliged to do it. If he doesn't give you work you don't get paid.

It happens, a little too often, so back to the drawing board with extra gusto!

[Veetee]

Thanks Guys,
Appreciate your feedback and know that we as contractors always live in a world of risk, however my contract didn't have a clause of mutuality of work - I wasn't aware this would be necesssary avoiding IR35, but could that be a blessing in disguise?
Would it be worth asking the agency (though they are quite big name) - is there any chance that they might accept the invoice if i sent them one. Also, I am in direct contact with the end client and within their good books which the agency knows..... so they'd probably not want to ruin their repute and future business or atleast the fear of it, just incase.

[northernladuk]

Thanks Guys,
Appreciate your feedback and know that we as contractors always live in a world of risk, however my contract didn't have a clause of mutuality of work - I wasn't aware this would be necesssary avoiding IR35, but could that be a blessing in disguise?

Not a blessing at all. I think this situation could be the least of your worries if you haven't not been aware of your IR35 status. Affects the way you have been taxed for god knows how long back.

Would it be worth asking the agency (though they are quite big name) - is there any chance that they might accept the invoice if i sent them one.

Sorry to be harsh but.. really??? Ask them if they might accept and invoice? Either tell them you will be invoicing them and follow it through or don't bother. That limp approach will just lose you respect (if agents have any) and provide them something to laugh at over lunch.

Also, I am in direct contact with the end client and within their good books which the agency knows..... so they'd probably not want to ruin their repute and future business or atleast the fear of it, just incase.

Agents don't give a stuff about you unless you can get them cash. You are just another contractor to them. Don't over estimate what the agents think of you.

Time to toughen up I am afraid.

[TestMangler]

First thing to do is not to listen to all the johnny cum lately contractors who tell you to roll over and accept being butt ****ed by an agent.

You will get exactly what you are willing to fight for in law. It really is that simple.

[northernladuk]

First thing to do is not to listen to all the johnny cum lately contractors who tell you to roll over and accept being butt ****ed by an agent.

You will get exactly what you are willing to fight for in law. It really is that simple.

There is a couple of freebies thrown in as well. Stress, time, effort, potential costs. Life isn't just about money.

[NotAllThere]

I had a contract through McGregor Boyle a few years ago, that was delayed one week, then cancelled. I got one week's fees. MGB also got one week's fees. I'd guess if MGB hadn't got any notice payment, then neither would I.

Do not ask your agency if there's "any chance", all meek and mild. They'll just tell you "no". Invoice them for the notice period, and see what they say. Initially, they'll probably refuse, but then you can ask them to justify their refusal - and ask them if they've received notice payment, which is a possibility. Do read your contract carefully to see if it supports the idea that you'll get paid a notice period.

If you don't ask, you most certainly won't get. Chances are you won't get anyway, but it's worth a try. Be prepared to negotiate.

[pmeswani]

I understand the MOO clause (well sort of), however as the agency was, allegedly, aware that the contract was cancelled a month before the contractor found out about it, can't the contractor stipulate that the agency restricted the contractor's ability to trade by virtue that they held him to a contract that was effectively null and void?