Canceling a Contract ?

**chock** · 2 August 2006, 10:19

I've known people to get told they're not needed before they've even started (purchase orders being knocked back when they were 'definitely' through)
I've seen clients give 1 day's notice before
Where I'm working at the moment is best. They have a rule that states they'll give one month's notice to contractors.
Always save a hefty pot before making them jump.

**lukemg** · 2 August 2006, 10:20

Gives clients a lot of comfort knowing they can cancel contracts, hence not 3 rounds of interviews like for permies. In reality, it is still effort getting the budget, reviewing CV's, interviews, making a decision, possibly waiting for people to finish other contracts, or getting turned down. They don't want to do this again, therefore, they are usually settled into keeping you for the time period specified. You have to really try hard to get binned in the first few weeks, you must be able to do most of the stuff you claimed you can (although some leeway on this I find) but the key thing is to not annoy people. I started one contract when a chap had been told he was out after 3 days because he got on everyone's nerves.
It's basic stuff, keep your head down, pick up the vibes in the area, undercurrents, level of banter, details about people's lives. You are on your best behaviour and work the room accordingly. Over time you get a lot more flexibility. If you are basically normal and personable and have the skills they ask for (note - the job is ALWAYS easier than anything you expect or have been told) then it is not a concern. Turn up with attitude, start believing your invoice rate means you rock and it could be a problem.

**The Lone Gunman** · 2 August 2006, 10:28

Most contracts wont end early, but some do. Funding is removed or research changes viability status.
This is part of the reason contract rates are so good (ha ha).
You need to decide if ti is worth the risk.
As advised above, it is easier to take the risk if you have enough in the bank to be out of work for a while. I try to keep 12 months "wages" in a slush fund for such emergencies.

Strangely, the short term cancellation of a contract is seen as risk for IR35 purposes, but only if it actualy happens!
I have tried building in penalty clauses to my contracts, but have so far failed to get them accepted. I have let them slip rather than walk away except once where I felt the risk was too great.
I try to add a clause which states that all works will be carried out at an agreed hourly rate for an agreed period of x months. Then add that should the contract be terminated before 3/4 term that all hours worked will be billed at my short term contract rate (usualy treble my 12 month rate).

**Clog II The Avenger** · 2 August 2006, 10:44

Beware of agents advertising long contracts. They often do this when they have a short contract at a low rate. They will then make think that it is a long contract so the rate doesn’t matter so much and you will find out the hard way that the client only wants you short term. The answer is ask the client how long he needs you.

If you are that worried I don’t think you should go contracting.

**linickx** · 2 August 2006, 10:51

thanks people, this has been v.helpful.

kind regards,
Nick

**Pondlife** · 2 August 2006, 11:56

Originally posted by The Lone Gunman

Strangely, the short term cancellation of a contract is seen as risk for IR35 purposes, but only if it actualy happens!

Is this true TLG? My understanding was that a short (ideally zero) notice period was a pointer to being outside of IR35.

Anyone care to confirm?

**The Lone Gunman** · 2 August 2006, 12:13

Originally posted by Pondlife

Is this true TLG? My understanding was that a short (ideally zero) notice period was a pointer to being outside of IR35.

Anyone care to confirm?

That is what I said (I think). Risk = outside IR35. Short notice = risk. SOme IR people require use of said clause to show its veracity (sp?).

Lini: Don't be put off. Many of us (including myself) jumped off the cliff with no safety net. I actualy took a 3 monther abroad at a reduced rate as a loss leader just to get started. No savings no nothing. Lived cheap, spent very little and built up a reserve.

**TheMonkey** · 2 August 2006, 12:18

Originally posted by The Lone Gunman

That is what I said (I think). Risk = outside IR35. Short notice = risk. SOme IR people require use of said clause to show its veracity (sp?).

Lini: Don't be put off. Many of us (including myself) jumped off the cliff with no safety net. I actualy took a 3 monther abroad at a reduced rate as a loss leader just to get started. No savings no nothing. Lived cheap, spent very little and built up a reserve.

Worked for me too. Don't be afraid to take your permie notice period off sick if you need to start sooner.

Ironically I've had permanent jobs that have lasted less than a week. I tend to quit in disgust.

**Xenophon** · 2 August 2006, 12:31

Originally posted by The Lone Gunman

Lini: Don't be put off. Many of us (including myself) jumped off the cliff with no safety net. I actualy took a 3 monther abroad at a reduced rate as a loss leader just to get started. No savings no nothing. Lived cheap, spent very little and built up a reserve.

Same here too. Went for a 3 monther in the UK and was still there 12 months later.

Canceling a Contract ?