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No explicit termination clause mentioned for me where as consultancy can terminate me

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    No explicit termination clause mentioned for me where as consultancy can terminate me

    Gurus,

    Could you please advise me here a bit? I have signed the contract and started work as well. Termination Clause in my contract says.. Consultancy can terminate me in 14 days or immediately if client ceases to work with consultancy. BUT it doesn't says anything on how much notice I have to give before terminating the contract. Has anyone come accross such contract?

    I suspect work will not last long here as they do not have solid confirmation of work from the client. If their proposal doesn't get approved we all will get binned with no notice at all BUT if I find another contract what are my rights?

    I had actually asked via email where is termination clause for me before I signed and I was told on phone that they would want contractors to finish the contract and not leave client half the way.

    It is bit late but now I realize that this consultancy is tricking in contractors.. I think they will not pay any outstanding amount if contractor terminates. They will force contractors to complete at the same time bin them if they stop getting paid.

    Has anyone come across such situation?

    Thanks
    -A

    #2
    Originally posted by ahpublicbox View Post
    I think they will not pay any outstanding amount if contractor terminates.
    If that's what you suspect you may want to take a holiday just prior to your last pay date and then terminate without notice.

    They may think that not having a termination clause in the contract means that people will stay till the end, but it also means they have no legal leg to stand on if you do leave, as no notice period was specified, nor does it explicitly state that terminating prior to the end of the contract would incur penalties of some sort.

    Next time, don't sign until the contract has all the clauses you want.

    Comment


      #3
      Originally posted by formant View Post
      If that's what you suspect you may want to take a holiday just prior to your last pay date and then terminate without notice.

      They may think that not having a termination clause in the contract means that people will stay till the end, but it also means they have no legal leg to stand on if you do leave, as no notice period was specified, nor does it explicitly state that terminating prior to the end of the contract would incur penalties of some sort.

      Next time, don't sign until the contract has all the clauses you want.
      Thanks for replying and yes I learnt it this time.

      Comment


        #4
        Originally posted by ahpublicbox View Post

        Could you please advise me here a bit? I have signed the contract and started work as well. Termination Clause in my contract says.. Consultancy can terminate me in 14 days or immediately if client ceases to work with consultancy. BUT it doesn't says anything on how much notice I have to give before terminating the contract. Has anyone come accross such contract?


        -A
        I have the same clause.

        I have no complaints with this - having to/being able to give notice is a weak indicator to being inside IR35 according to HMRC's publication on the Business Entities Test and the case studies at the back (can't remember which one but one of them specifically mentions this).

        If it is a short contract, you have RoS and a clause allowing you the right to maintain concurrent contracts with other clients, then for my money you're worrying about nothing.

        Comment


          #5
          Have you had your contract reviewed by a specialist for IR35 or is that your second mistake?

          It is bit late but now I realize that this consultancy is tricking in contractors.. I think they will not pay any outstanding amount if contractor terminates. They will force contractors to complete at the same time bin them if they stop getting paid.
          Why do you realise this? What foundation do you have to make the assumption they are tricking contractors? You didn't know about negotiating terms of your contract nor understand a not termination clause. Why then do you think you are in a position to say what the agents are doing?

          It's not a trick, it's pretty normal nowadays for exactly the reasons the agent stated. Of course they won't pay any outstanding amount. You are paid for the work you do. If you don't work it you don't get paid. Where do you get the idea you get paid for the oustanding amount?

          Someone has a lot of reading up to do me thinks.
          Last edited by northernladuk; 24 January 2013, 15:50.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by 7specialgems View Post
            I have the same clause.

            I have no complaints with this - having to/being able to give notice is a weak indicator to being inside IR35 according to HMRC's publication on the Business Entities Test and the case studies at the back (can't remember which one but one of them specifically mentions this).

            If it is a short contract, you have RoS and a clause allowing you the right to maintain concurrent contracts with other clients, then for my money you're worrying about nothing.
            nothing in the questions

            have to be honest haven't seen one for a few months, nor can i remember the case studies though.

            Comment


              #7
              Originally posted by 7specialgems View Post

              I have no complaints with this - having to/being able to give notice is a weak indicator to being inside IR35 according to HMRC's publication on the Business Entities Test and the case studies at the back (can't remember which one but one of them specifically mentions this).
              The only problem you may have with that is that if the agency can give notice but you can't it can give the impression of a master / servant relationship which points to employment.

              Comment


                #8
                Originally posted by northernladuk View Post
                Of course they won't pay any outstanding amount. You are paid for the work you do. If you don't work it you don't get paid. Where do you get the idea you get paid for the oustanding amount?
                I was thinking (hoping?) the OP meant that when he gives notice the agency will withold payment for work done up to the point at which he leaves.

                Comment


                  #9
                  Originally posted by moggy View Post
                  nothing in the questions

                  have to be honest haven't seen one for a few months, nor can i remember the case studies though.
                  I think it was mentioned in the Dragonfly case? Something about it negating the MOO clause??
                  "He's actually ripped" - Jared Padalecki

                  https://youtu.be/l-PUnsCL590?list=PL...dNeCyi9a&t=615

                  Comment


                    #10
                    QDOS guidance

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