Finishing Contract Early

[tim123]

apologies to hijack this thread, didn't want to create a new one when discussing the same subject
Anyho, I got this termination clause in my contract:

[I]Termination
1. The Employment Business is entitled to terminate this Agreement by notice with immediate effect in respect of a particular assignment if:
• the Client terminates the Assignment'
• the agreement between the Employment Business and any particular Client (to which the Assign meet relates) terminates or fails to commence

Yep, they are asking you to take on the risk of a zero notice termination.

Whether you want to do this (and on what terms) is entirely up to you (it will be a positive IR35 pointer).

tim

[SandyDown]

bump

[SandyDown]

apologies to hijack this thread, didn't want to create a new one when discussing the same subject
Anyho, I got this termination clause in my contract:

Termination
1. The Employment Business is entitled to terminate this Agreement by notice with immediate effect in respect of a particular assignment if:
• the Client terminates the Assignment'
• the agreement between the Employment Business and any particular Client (to which the Assign meet relates) terminates or fails to commence
• the Service Provider breaches any term of this Agreement and Fails to remedy any such breach within seven days of notice being given by the Employment Business to the Service Provider requiring remedy
• the Service Provider and/or its Consultant be convicted of a Serious criminal offence which in the opinion of the Employment Business could affect the Employment Business's reputation'.
• a receiver. Administrative receiver administrator or similar officer be appointed for the service Provider or any part of its assets or undertaking. or the Service Provider goes into liquidation or makes any voluntary arrangement with its creditors or passes a resolution for voluntary wending-up or a winding-up order is made (except for the purpose of a tuna fide amalgamation or reconstruction) .

2. Unless otherwise stated in Schedule 1 . this Agreement (or any particular Assign meet) may be terminated at any time without cause by either party upon the provision of 28 days' written notice to the other party.
3. Upon termination of an assignment. The Service provider shall return to the Client all property belonging to the Client obtained whilst providing the Services.
.


What bothers me is the first clause (terminate this Agreement by notice with immediate effect in respect of a particular assignment if:
the Client terminates the Assignment')

does this mean if the client decides to cancel the project then I can be terminated wth no notice

Also how many of you actually provide their own contracts? I saw the example contracts on PCG so I could use something like that? must admit the only person I run my contract with is my accountant to advice me whether I am IR35 safe or not

[tim123]

There's no way on earth I would ever sign up to this. Each time I've ended a contract it's been on my terms ultimately by screwing the EB for not supporting me for terminations that were not my fault.

What happens if a relative dies and you need to leave quickly?
What happens if you become ill and cannot work?
What happens if the client gives you hell and bullies you?
What happens if the services were obtained by deception and turned out to be nothing like that described at the interview?

These are all legit reasons for dumping the contract - instantly. There's no way I'd indemnify any EB for these reasons.

If the contract had this clause in it I would insist on a supplementary clause that stipulated that any indemnity for loss of client fees over me ending early was only based on the 'reasonable belief that I had terminated to take up higher paid work elsewhere.' NO OTHER REASON!

You don't have to sign up for it.

It is an automatic right that contract law gives the 'harmed' party whether it's in the contract or not (and courts have ruled compesation exclusion clauses as void).

The examples that you mention are (mostly) covered by force majeure and no compenastion would be payable, but the emphasis is on the defaulting party proving why they *needed* to terminate early, not the other way around.

tim

[thunderlizard]

Not so sure themee...
"If provision is made in the contract schedule..." - from your first post it sounds like no such provision is made.
Mate, just do the easy thing and send it to a high street solicitor. They'd give you all the answers you need in half an hour.

------------
Some interesting points there Denny, as often.

The top two (relative dies, personal illness) should not be the customer's problem. They would be unfortunate, and in practice your client would probably cut you some slack on a small scale project. But it's strictly business, so the company that is servicing the contract should make sure it's able to fulfil that contract. If one person has to leave for personal reasons, it puts somebody else in place instead. Illness of staff etc. is just one more contract risk item, and your company should make sure it's charging enough to cover those risks so that it can deal with them if they arise. I don't see EDS walking out of projects when their staff get ill.

Your other two are a bit different. Yes if the contract was a lie, then it's probably not upholdable (a contracts lawyer would know the ins and outs of this, UCTA's the main one though). And with the bullying: the client hwill generally have no contractual obligation to be nice to its suppliers, but they do tend to have an obligation not to obstruct their work.

Bottom line is that contracts are only legitimately breachable for the specific reasons written into them, or for the generic reasons that apply across all contract law.

[theemeestroo]

I have this clause in my contract

If provision is made in the Project Schedule, for the Consultancy to terminate the contract before the completion date or final delivery date by giving written notice of such intention and the Consultancy fails to give such notice the Consultancy shall be deemed to have caused a breach of the terms of this contract and GCS shall have the right to pursue the Consultancy for any damages suffered as a result of such a breach. The Consultancy also accepts that GCS has the right to offset any losses sustained as a result of the Consultancy’s actions, breach or unsatisfactory performance from any payment due to the Consultancy.

So I am guessing that as long as the Client agrees then there is no way the agent should be able to get me. Plus, the project I am on finishes end of Feb and as I haven't taken the extension then they will be better off getting someone in for the 6 months for the new project.

[Billy Pilgrim]

If the termination is on your initiative, then the agent might go after you for his lost earnings, which will be his cut * client's paid rate * time units remaining on contract. Even so, that might be a small price to pay for freedom!

Unless there is a termination clause in the contract - in which case they haven't got a leg to stand on....

....BUT........Remember, there is a symbiotic relationship between you and the EB / agent!

[thunderlizard]

If the termination is on your initiative, then the agent might go after you for his lost earnings, which will be his cut * client's paid rate * time units remaining on contract. Even so, that might be a small price to pay for freedom!

[theemeestroo]

Cheers Taz.

And like you say, as long as I tie everything up and make myself available for any queries they should be happy enough.

[ChimpMaster]

Give them enough notice - 4 weeks is plenty - and go for it. I left one of my contracts a week early but told them a month in advance and they were fine with it - even tho they wanted to extend the contract.

Be professional. Assure your client that you will get all the work done and tie up the loose ends etc. before you leave, and that you'll be happy to be in contact after if there are any questions/issues to deal with.

I wouldn't give up the chance to work 5 mins from home for anything!

[theemeestroo]

Hi

I want to get out of my contract early. It is due to finish end of March but I have an offer for another one to start beginning of March. I think client will be ok, especially as I am giving 4 weeks notice but on the contract I have no notice period. Would the agent be able to push for me to finish, even if the client agrees for me to go?
By the way, I wouldn't normally jump early but I am up in Glasgow at the minute and this new one is 5 mins from my house in Leeds!!