Breach of contract during notice period

**Manz** · 9 January 2014, 11:36

This is what I'm worried about, If I get offered a contract and then I hand in my resignation at my current contract, then if the new contract gets cancelled last minute, then I will be on the bench without any contracts. I also need to give in 30 days notice in my current contract.

**cojak** · 9 January 2014, 11:44

I handed in my 3 month permie notice without a contract to go to.

You just have to set yourself adrift from the permie land onto contractor waters.

There's nothing guaranteed in contracting. That's what being a contractor is all about...

**Old Greg** · 9 January 2014, 11:46

Originally posted by beatleuk View Post

Hi everyone,

I'm looking to get back into the contracting market but as I am presently a permie my 4 weeks notice period seems to be a hindrance and area of major concern.
Let's say I find an ideal contract that's looking for somebody to come on board for 3 months whilst they look for a permie. We have interviewed and agreed that I would be the contractor to fulfil their requirement and sign contracts. Then during my 4 weeks notice period they either find another contractor that can start immediately or the right person to fill the permie role who can start either before me or very soon after my contract was to start.
Where do I stand with regards them breaching the signed contract and what must I make sure is in the contract to cover myself in this situation?

I know one thing I could do is steer clear of contracts where they're looking for a permie but the same could be said for any contract that the customer finds another contractor willing to start before my 4 weeks notice period is up.

Thanks in advance

Originally posted by Manz View Post

This is what I'm worried about, If I get offered a contract and then I hand in my resignation at my current contract, then if the new contract gets cancelled last minute, then I will be on the bench without any contracts. I also need to give in 30 days notice in my current contract.

This, my friends, is the risk you run: if it is cancelled before you start, then you can do nothing about it.

Only hand in your notice if you understand and accept that risk.

**Old Greg** · 9 January 2014, 11:48

Originally posted by cojak View Post

I handed in my 3 month permie notice without a contract to go to.

You just have to set yourself adrift from the permie land onto contractor waters.

There's nothing guaranteed in contracting. That's what being a contractor is all about...

I had 3 months' notice too. I agreed that I would leave on the Friday and start a contract elsewhere on the Monday. My post had just been put at risk and it meant one less person to make redundant.

And the rest is a story of overpaid under-delivering long commutes.

**GillsMan** · 9 January 2014, 12:13

To the OP: there is nothing you can do to protect yourself financially if this happens in terms of forcing the client or agent to pay. In fact, as a business, you do not want to get paid for work you don't deliver.

From an IR35 perspective, you could definitely add a cancellation clause to your contract, but good luck getting the agency/client to insert that into their standard contract.

The protection you can provide is to a) have enough of a warchest to survive lengthy periods of low or no billing and b) to have the skills which are in demand such that you can find another contract pretty easily.

**DirtyDog** · 9 January 2014, 12:21

Originally posted by Old Greg View Post

This, my friends, is the risk you run: if it is cancelled before you start, then you can do nothing about it.

Only hand in your notice if you understand and accept that risk.

+1

It's the nature of the beast - every contract can end before it starts; every contract can end before it is scheduled to.

Some people on here will tell you of how they always include a clause in the contract so that it's an early termination fee rather than a notice period. I haven't seen anyone actually publish on here how they word it and whether they have had the clause checked by a competent legal professional. Read into that what you will.

**Damon** · 9 January 2014, 12:26

If you are leaving and committed to doing so your current employer has little leverage on you anymore.

Give your notice but tell them you can only work two weeks. If they have any sense they should agree to it as what are they realistically going to get out of you in weeks 3 and 4 and you can always phone in sick or no show.

**kal** · 9 January 2014, 12:51

Originally posted by cojak View Post

I handed in my 3 month permie notice without a contract to go to.

You just have to set yourself adrift from the permie land onto contractor waters.

There's nothing guaranteed in contracting. That's what being a contractor is all about...

+1 I did the same, 3 months notice, started looking with 2 weeks to go, landed a contract a mile away starting the Monday after my last permie day (Friday), never looked back, if you play it safe all of the time you will never take the plunge...oh and if it fell through I had a 6 month war chest just in case

**kal** · 9 January 2014, 12:54

Originally posted by Damon View Post

If you are leaving and committed to doing so your current employer has little leverage on you anymore.

Give your notice but tell them you can only work two weeks. If they have any sense they should agree to it as what are they realistically going to get out of you in weeks 3 and 4 and you can always phone in sick or no show.

Really, I would like to think most peoples moral compass would decide that this is not the course of action to take, you sign a contract with 3 months notice and if you expect the employer to honour it then so should you IMO...

Breach of contract during notice period