Reply to: IT contracting - Breach of contract

[ComplianceLady]

LA's contracts are infamous for this. In my view they are unenforceable - there's requirement to demonstrate loss and unreasonable restrictions etc. To my knowledge they don't pursue them legally but are used as a threat - most contractors decide to see out the contract rather than being pursued for a fee. The contract usually prevents the contractor from letting the client know and doing anything that might cause the client to terminate the contract early. Now it's done I think riding it out and calling their bluff is probably the best bet but without being the voice of hindsight - I really wish people read contracts before they signed them.

[northernladuk]

Giving notice according to a notice period isn't necessarily the only way a contract can be terminated by the contractor. There should be a section in the contract to list various methods of Termination. Depends what else is in the OPs contract.

There will but notice is the only one they works for him in this instance. The others will be dismissal type events for unacceptable actions.

[Lance]

IT contracting - Breach of contract

Giving notice according to a notice period isn't necessarily the only way a contract can be terminated by the contractor. There should be a section in the contract to list various methods of Termination. Depends what else is in the OPs contract.

I disagree.
There might be various reasons for termination, but the point of ‘notice’, with or without a time delay, is notification of termination.

Any termination will require notice to inform the relevant parties of the termination.

A notice ‘period’ is simply a time delay between notifiying of the termination and the actual termination date of the contract.

[CheeseSlice]

How?

If there is no notice allowed. No termination of the contract by you.

Giving notice according to a notice period isn't necessarily the only way a contract can be terminated by the contractor. There should be a section in the contract to list various methods of Termination. Depends what else is in the OPs contract.

[Lance]

Unfortunately I have already handed in my notice.

How?

If there is no notice allowed. No termination of the contract by you. You cannot serve any notice.

Read carefully your first post.
The liability on you is if you say something that makes the client terminate.

You’ve basically screwed up your exit from this one. Your best bet would have been to simply not turn up (only telling the agency so you don’t invoke the clause). The client will terminate but not because of any thing you said so that clause is immaterial.

I very much doubt that the clause would stand up on court, but it’s not necessarily as clear cut as others suggest.
For now you just need to look for other work and refuse to pay the agency. Make them take you to court if they want to.

[Anonimouse]

I have seen the exact same threat from this agency, to an ex colleague, the client stepped in. I am currently on site with two colleagues via this agency, both of whom looked blankly at me when I mentioned lack of notice period in their contract.

[Networker2017]

I know someone who left through mutual agreement with this agency.

Worse case is they bring someone else in and charge you the difference it takes to replace you.

So not the full amount, Im not aware of them ever enforcing this but it is in the contract...

[northernladuk]

Old Greg. Unfortunately I have already handed in my notice. There is a substation clause but i've already done the deed.

Will my Professional Indemnity insurance cover me?
Do they have a valid claim?

Thanks

No it won't but you haven't handed in your notice. You can't.

Maybe if you read your PI contract you'd know that

[WTFH]

If you’re wanting to go legal, you need to contact a Contract Law specialist, not an employment one. Don’t expect to get a good one cheap - they are around £400 per hour.

[Old Greg]

Old Greg. Unfortunately I have already handed in my notice. There is a substation clause but i've already done the deed.

Will my Professional Indemnity insurance cover me?
Do they have a valid claim?

Thanks

Make an offer to send in a sub anyway. They'll hate that.

[CheeseSlice]

Will my Professional Indemnity insurance cover me?
Do they have a valid claim?

Give the PI insurance company a call and ask how they would treat it?
The clause looks shoddy to me but I'm no expert. I'd be interested to see if there is a real 'damage' here for the agent. If the client had made a claim of damages against LA first then that would be a different matter IMO, though not for this clause.

When I read this post it reminds me of just how important it is to review your own contract before you sign (not just get an IR35 review). If there's anything you don't like, get it removed or walk away. Don't take anything that is said verbally by the agent as true as the formal written contract matters more than anything in situations like this.

[NotAllThere]

I am going to contact an employment law specialist to see what my options are

No point. You're not in an employment relationship with the agency.

Will my Professional Indemnity insurance cover me?
Do they have a valid claim?

Well, you could ask them. But I doubt you're covered.

[volatilebear]

Old Greg. Unfortunately I have already handed in my notice. There is a substation clause but i've already done the deed.

Will my Professional Indemnity insurance cover me?
Do they have a valid claim?

Thanks

[Old Greg]

OP, what is your substitution clause like?

[northernladuk]

Don't seek to terminate the contract, but tell the agency you are taking a two month holiday starting in three weeks' time.

And Greg has beaten me to it. Agree with the client there is nothing to do and they are happy not to turn up for the rest of the contract, leave and let the contract run out.

No breach. Screw you LA. Sorted.