Reply to: Contract Notice Period

[expat]

I was concerned not so much with the notice the client had to give me, but the fact that I may be locked in for 3 months; is this usually and can I be held to it? Thanks.

It's actually pretty common for permanent employees too, at least in responsible professional jobs.

[malvolio]

Don't start, dear boy, you're out of your depth. None of these arguments would matter a damn if the agencies hadn't frightened the clients' Human Remains departments into thinking that the only way to protect against spurious employment claims was to interpose an agency agreement between thetwo ends, rather than esablishing a proper contract for the supply of services.

Yes, the agent got the work, and that's what you're good at, and yes you carry the financial risk of acting as the factor for the invoicing and protecting the poor dears from late payments, and that's why you get 15% of the deal in perpetuity. But that is your only benefit, the contractual conditions we have to work with and argue and that potentially cost us 20% of our income in excess taxation are total crap, and that is purely down to you.

[IT contract agent]

denny,

you shouldn't believe everything that HR bods say. It is often that HR bods are the most obstructive people involved in the recruitment process. It is they that often insist in having silly notice periods like a day. Agents would much rather the client have to give 28 days notice as well as the contractor - who by the way, many of you forget, only got the job because of an agent

[Denny]

I think some of you are incredibly niaive about notice periods. If you are opted in contractor and within IR35 you are taxed as a pseudo employee and therefore you're attitude to your role should be the same. If the job doesn't work out then you can leave. Simple. After all, the client can do the same, by issuing you notice even if you're doing a great job. It's not good convincing yourself that you're an 'owner managed independent businessperson' if the agency, the IR and the client don't agree or treat you as such.

There's also something else you need to know.

Be aware of agents that tell you that the client will only take opted out contractors. There is a reason for this and it isn't pretty.

Chances are that the termination period clauses in your own contract with the agency do NOT mirror that which the agency has made with the client. The agency will want to cover their back to prevent you uncovering such a discrepancy and being sued for breach of contract.

How does the client cover their back too?

If the client needs to get rid of you, they simply tell the agent that you have underperformed or some other reason that justifies termination without notice period payments and you will be escorted off the premises the same day. We've seen a few examples of this treatment recently, one only a week or so ago.

I recently found out (from an HR bod who I know within a large private organisation that their own contract with their agencies regarding notice periods was only 1 day for the first month, and one week from week 4-8 weeks on the job. That arrangement was non-negotiable, apparently, and applied to all contractors irrespective of role and status. On the contracts the same agency have with their contractors though it clearly stipulates a two way notice period from day 1 as being a 28 days. Of course, not all organisations would operate this way or agents. However, there is a fair chance that this could be the reason if your agency insist that you opt out because the client insists on it or else you won't be considered for the gig.

Well you don't need to be Einstein to work out that the client will, in my example above, pay only 1 day as agreed to the agency (for working on site less than a month) or one week (for more than a month) should the client want to give notice before the contract period ends, but the agency would still have to pay you 4 weeks. Therefore, its much simpler and easier to stitch you up (with the client) to say you messed up in some way to save the agency considerable loss of profit.

That's why you should be wary about opting out. By doing so you expose yourself to not getting much legal redress and the DTI won't investigate opted out contractors either. What's more, should the agent decide that they believe that you were terminated without just cause because you're objecting, then they can still insist on timesheets being signed off for that notice period (as is the case with all opted out contractors, but not opted in). Therefore, the agent isn't so much putting their case to the client about your performance etc to get legitimate notice periods paid up as supposedly agreed with them originally, what they are actually doing is renegotiating your termination period with the client as a one off to cover the period stipulated on your own contract. Most clients would probably not agree to do that so the agent has no choice but to 'believe you were terrible at your job and the contractor in turn 'ruins their reputations' with the agency.

[malvolio]

Sorry, but that's even more bollocks than normal.

If they can't pay there will be other clauses in the contract that they will have broken and you can use them to walk away with no penalty. Listen carefully:

Assymetric Notice Periods mean no MOO mean no IR35!!!

[Mailman]

Think of yourself as a professional providing an agreed service. Would you expect someone to walk out half-way through the job?

What a lot of hogwash!

Every contract should have terms under which it can be cancelled by either party!

Think of it this way, say your client has money issues and you know you arent going to get paid YET you are stuck with them until the completion of the contract. Rather pointless tieing yourself to these scym dont you think?

Mailman

[jamesc1]

This has happend to me

Hi

This has happened to me on a 6-month contract. I like you have every intention of working the full duration, but the principal of the matter means I would not agree. The agency told me it was something the client insisted on, but after some conversation they agreed to reciprocal notice there and then without having to check with the client first hmmmmm. I think agencies insist on this to guarantee their commission. I dont like it.

[tim123]

When presented with such a contract I always say to the agent that I am quite happy to agree to the fixed term, provided that a full description of the work I will be performing is part of the contract. I explain that I want a get-out if I turn up on day one and they give me tasks which I would never have agreed to do if they had been discussed at the interview (oops sorry, sales presentation).

This has (unfortunately) always resulted in a mutual notice period magically becoming possible.

tim

[ratewhore]

You can always ask for reciprocal notice to be added before you sign. I do and have never had a problem with it...

[Mordac]

As a point of principle, I always insist on being able to give notice during the first week (if you ask the agency nicely, they will invariably agree), just in case the role differs severely from that which is agreed at interview. After that, if you've signed up for 3 months, you should honour the contract, as you would expect the client to.

[Pointy-Hair]

Thanks for your opinions. I wasn't planning to run out on them - just like to know where I stand.

[Xenophon]

I was concerned not so much with the notice the client had to give me, but the fact that I may be locked in for 3 months; is this usually and can I be held to it? Thanks.

Depends on the wording. Possibly you can be held to it, but in my opinion if you decide to bail the bigger issue is the fact that you will annoy your client and probably agent too.

[Xenophon]

Think of yourself as a professional providing an agreed service. Would you expect someone to walk out half-way through the job?

[Pointy-Hair]

I was concerned not so much with the notice the client had to give me, but the fact that I may be locked in for 3 months; is this usually and can I be held to it? Thanks.

[handsfree]

normal

Yes, it's normal. If anything, the fact that they have to give you a month's notice is very good. Often it's a week.