breach of contract

[jonesgray]

Hi new to site ,

I have been contracting 18 years and have recently had contract terminated with immediate affect. The contract was contract to perm but at a very early point in contract i sussed it wasn't going to go perm, I was in just to get them through a large peak in work (the contract was 4 mths).

I was 10 days from end of contract when I emailed agent to see if the client would approach me or them regards offer that was offered at the start of contract. At this point i also spoke to the senior management at the company, I was told no job was available, that I completed all tasks,and could leave. It was agreed that i would complete the contract which had 10 working days left. The following day went as normal with no issues.


On the friday morning i was confronted by senior manager who told me my services were no longer required and to leave? I informed him under terms of contract one weeks notice should be given which he laughed. Under advice from agency i submitted a time sheet for the weeks notice which has not been paid the agency have said through out they will support 100% the monies owed are £1000 inc vat for notice period.

It may not seem a large amount its more the principle,i have a legally binding contract, it now appears that after one month of chasing the agency ,they now say i have committed gross misconduct,none of which happened.

prior to this the reason given for termination was due to a change in demand,also the agency since has re advertised the position at a much lower hourly rate, £20 per hour to £12 per hour.

I have spoken to the employment agencies inspectorate who have told me that under section 12 of the act they can cannot withhold payment,and also that in the the event of gross misconduct under the uk employment act not only have the client but the agency has broken every part of these procedures which opens them up to industrial tribunal Any body got any ideas?

Any help would be appreciated

[Sockpuppet]

Its probably not what you want to hear but for £830 after the VAT it is really not worth the hassle even to prove the point.

If you really think you have a case and have a Ltd issue small claims court proceedings but I think you'd be lucky to get anything.

[Wanderer]

it now appears that after one month of chasing the agency ,they now say i have committed gross misconduct,none of which happened.

It does depend on what your contract says. Read it carefully, some of them have provision to terminate immediately without notice and without reason, what does yours say. If the only grounds for termination is gross misconduct and you think they are using this as a get out then I would take it further.

Go to the Pay on time website and follow their procedures to demand payment.

If they don't pay then start legal action via Money Claim Online. Once you start legal action they will almost certainly back down and just pay up rather than waste their time fighting it through the courts (and probably losing too).

Let us know how you get on, it's always interesting to see how these cases turn out.

[SueEllen]

If the agency does decide to fight back don't get scared with the tulip they make up, as they will settle just before the court hearing which means even on the day.

This is because if a judgement is gained against against a person or an organisation it will be public knowledge.

[northernladuk]

Hi new to site ,

I have been contracting 18 years and have recently had contract terminated with immediate affect. The contract was contract to perm but at a very early point in contract i sussed it wasn't going to go perm, I was in just to get them through a large peak in work (the contract was 4 mths).

I would assume you have been accounting as inside IR35 if the job was to become perm?

I was 10 days from end of contract when I emailed agent to see if the client would approach me or them regards offer that was offered at the start of contract. At this point i also spoke to the senior management at the company, I was told no job was available, that I completed all tasks,and could leave. It was agreed that i would complete the contract which had 10 working days left. The following day went as normal with no issues.

This to me is the real issue in hand. You haven't had your contract terminated. They just don't have any work for you. The contract expired naturally but for the last 10 days there was no work so you didn't get paid.

You go on to say you would complete it... How? There was no work. Staying on to get paid after the work has completed would be a big IR35 flag... but I am assuming you were inside already.

When they agreed this how did they do it? Verbally? Sounds more like someone was chicken rather than a real business need to keep you. I would read in to the next paragraph someone else in the company decided they shouldn't be chicken and deal with the situation.

On the friday morning i was confronted by senior manager who told me my services were no longer required and to leave? I informed him under terms of contract one weeks notice should be given which he laughed. Under advice from agency i submitted a time sheet for the weeks notice which has not been paid the agency have said through out they will support 100% the monies owed are £1000 inc vat for notice period.

Again, they haven't terminated you, they just don't have work for you.

It may not seem a large amount its more the principle,i have a legally binding contract, it now appears that after one month of chasing the agency ,they now say i have committed gross misconduct,none of which happened.

prior to this the reason given for termination was due to a change in demand,also the agency since has re advertised the position at a much lower hourly rate, £20 per hour to £12 per hour.

I have spoken to the employment agencies inspectorate who have told me that under section 12 of the act they can cannot withhold payment,and also that in the the event of gross misconduct under the uk employment act not only have the client but the agency has broken every part of these procedures which opens them up to industrial tribunal Any body got any ideas?

Any help would be appreciated

The problem here is you have to prove loss to win something like this. All they have to do is say that there was no more work which you also mention twice in your posts. You are still in contract therefore no notice is due but no money is due because they had nothing for you to do. Yes they went about it wrong but it doesn't change the reality of the situation which they will come back to. We know from IR35 that the reality of the situation is key, not the contract so would expect the same to happen here.

Were you opted in or out of the regulations? I assume the fact you have spoken to them that you are opted in? Is that so?

All that said, as has already been mentioned, by kicking up a fuss they may just pay it to make the issue go away so you could try, but then again they may not.

[jonesgray]

breach of contract

thanks for response
was told was enough work till end of contract,i was also through same umbrella co I've used for last 12 years
contract clearly states 1 weeks notice from my self and also the client

[northernladuk]

thanks for response
was told was enough work till end of contract,i was also through same umbrella co I've used for last 12 years
contract clearly states 1 weeks notice from my self and also the client

Holy crap! Umbrella for 12 years?!?!?!?

Have you used the calculators to see how much you have lost over that period?

How long was this contract that you have just finished?

[GazCol]

I would assume you have been accounting as inside IR35 if the job was to become perm?



This to me is the real issue in hand. You haven't had your contract terminated. They just don't have any work for you. The contract expired naturally but for the last 10 days there was no work so you didn't get paid.

You go on to say you would complete it... How? There was no work. Staying on to get paid after the work has completed would be a big IR35 flag... but I am assuming you were inside already.

When they agreed this how did they do it? Verbally? Sounds more like someone was chicken rather than a real business need to keep you. I would read in to the next paragraph someone else in the company decided they shouldn't be chicken and deal with the situation.



Again, they haven't terminated you, they just don't have work for you.



The problem here is you have to prove loss to win something like this. All they have to do is say that there was no more work which you also mention twice in your posts. You are still in contract therefore no notice is due but no money is due because they had nothing for you to do. Yes they went about it wrong but it doesn't change the reality of the situation which they will come back to. We know from IR35 that the reality of the situation is key, not the contract so would expect the same to happen here.

Were you opted in or out of the regulations? I assume the fact you have spoken to them that you are opted in? Is that so?

All that said, as has already been mentioned, by kicking up a fuss they may just pay it to make the issue go away so you could try, but then again they may not.

The co readvertising the role at a lower rate suggests there's work available.

As other's have said, it sounds like the co want to save costs but have gone about it in the wrong manner; I expect they'll settle before it gets to court.

[northernladuk]

The co readvertising the role at a lower rate suggests there's work available.

As other's have said, it sounds like the co want to save costs but have gone about it in the wrong manner; I expect they'll settle before it gets to court.

Not for him at that rate there wasn't. Doesn't matter anyway, it's not covered by employment laws or anything. If they don't want to give him work they don't have to. The work budgeted for a guy on £20 finished and a new set of work, probably de-skilled looking that the rate chop started so the position is open.

They can word it however they want, still comes to the same end.

[GazCol]

Not for him at that rate there wasn't. Doesn't matter anyway, it's not covered by employment laws or anything. If they don't want to give him work they don't have to. The work budgeted for a guy on £20 finished and a new set of work, probably de-skilled looking that the rate chop started so the position is open.

They can word it however they want, still comes to the same end.

The rate advertised is irrelevant if the job spec is the same. If there's no justification for terminating the contract, which considering we don't know the terms of the contract is a big if, they've clearly breached the contract. It's this mindset of many contractors to put it down to experience, roll over and get another contract that allows co's to get away with this behaviour.

However, it's all moot if, as Wanderer said in an earlier post, the contract has the provision to terminate without notice & reason.