early termination withdrawn

[theroyale]

Hi all,

I started a 12 months contract in July. The contract notice period is 2 weeks. I was served 3 weeks notice on 22nd of November in writing. Luckily I have managed to find a better contract to start next week - better rate, closer to home etc. Signed the contract this morning.
The agent on my current contract has called me to give the 'good' news - the client has withdrawn the notice. When I told him that I have got another contract and cannot continue, they threaten me to sue for loss of revenue, quoting I am in breach of the agreed contract.

Is the agent's argument reasonable, or more precisely, legal ? How should I approach this one?

I use my own limited , but contract is inside Ir35 - no substitution clause.

Thanks in advance for guidance.

Al

I thought ALL 3 main IR35 clauses should be absent from your contract for it to be trapped by IR35. There was a recent judgement (I think, you need to google) that had someone declared outside IR35 when they had just one of the 3 main clauses (Substitution, Mutuality and the Other One) in their contract.

[TykeMerc]

Oh and well done for finding an alternative contract on terms you prefer so quickly

[xchaotic]

The agent is probably on a guarantee so the might not get a commission for not fulfilling a contract, they will probably not get another chance, once the client finds out that they were trying to milk them for a higher rate behind your back.

With the agent/client giving you notice and then withdrawing it, it's a good choice you're going away from there.

[contractoralan]

Using the information in the thread, I have sent an email to the agency.

hope the agency stops bothering me.

Thanks for your support folks.

Al

[AnthonyQuinn]

Just keep a copy of the termination letter / email. Send an acknowledgement of having received it.

Dont even bother to respond to anything else.

[Scrag Meister]

Notice in writing, enjoy your new contract.

[Fred Bloggs]

I'd tell them in no uncertain terms that you'd be very pleased to send in a qualified substitute but as the contract doesn't allow it, you'll decline thank you very much and move to the new contract.

[Wanderer]

I use my own limited , but contract is inside Ir35 - no substitution clause.

And if the agent can't be bothered to provide an IR35 friendly contract then he is a anyway.

[Wanderer]

Is the agent's argument reasonable, or more precisely, legal ? How should I approach this one?

Absolutely not. They don't have a leg to stand on and they know it full well, now they are trying to bully you into taking an extension. Write to them thus:

"Thank you very much for your offer of an extension which My LTD has decided to decline. The original contract was terminated in writing as per the contract terms and My LTD has moved on to another contract and therefore unavailable to work for the client"

End of story. DON'T get into an argument with them, you are wasting your breath and they will just try and scare you with more empty threats. These people are professional bulltulipters and FUD spreaders. If they phone you then just say "Did you read my email? OK, I thought it was pretty clear, what part of it DON'T you understand?"

I would explain the situation directly to the client as well, "Thank you very much for the opportunity to provide services to your LTD over the last 6 months. Unfortunately My LTD is unable to take up your offer of an extension to the contract due to other commitments. I look forward to doing business with you again at sometime in the future".

[craig1]

If they've served notice of termination as detailed in the contract, or under more generous terms, it would require joint approval to revoke that termination notice and unless there's a plainly idiotic clause in the contract saying otherwise then you are under no obligation to stay beyond the notice.

Make it clear to them that if they make an issue of it, make it public or otherwise endanger your new contract then you'll counter-claim for wrongful interference with a contract. Also make it clear to them that if they endanger your new contract but choose not to sue you then you'll sue them for the full value of the expected duration of the new contract.

Everything in writing from now, no phone calls. If it's not written down then you'll have a hard time proving it.

[SueEllen]

The agent can moan all he likes, you had the notice in writing so it was perfectly reasonable to act on it. From what you've said you acted perfectly reasonably.

Don't argue it, simply state the facts that as per the notice given you're not available for that contract and have taken another. If they threaten to sue then let them do so (odds are incredibly long that they will) and you will win in court 99 times out of 100.

WHS

And don't bother speaking to the agent put it all down in a concise email. If and every time the agent phones you refer them to the email and tell them to bugger off politely.

[TykeMerc]

The agent can moan all he likes, you had the notice in writing so it was perfectly reasonable to act on it. From what you've said you acted perfectly reasonably.

Don't argue it, simply state the facts that as per the notice given you're not available for that contract and have taken another. If they threaten to sue then let them do so (odds are incredibly long that they will) and you will win in court 99 times out of 100.

[pmeswani]

Hi all,

I started a 12 months contract in July. The contract notice period is 2 weeks. I was served 3 weeks notice on 22nd of November in writing. Luckily I have managed to find a better contract to start next week - better rate, closer to home etc. Signed the contract this morning.
The agent on my current contract has called me to give the 'good' news - the client has withdrawn the notice. When I told him that I have got another contract and cannot continue, they threaten me to sue for loss of revenue, quoting I am in breach of the agreed contract.

Is the agent's argument reasonable, or more precisely, legal ? How should I approach this one?

I use my own limited , but contract is inside Ir35 - no substitution clause.

Thanks in advance for guidance.

Al

As you had been given termination notice, you were acting in good faith by finding new employment. The agent cannot presume loss of earnings as there were none available based on the termination notice. The agent / client cannot prevent you from seeking new work. I would suggest getting legal advice and let the agent carry out their threat.

No agent likes to face the prospect of going to court.

[contractoralan]

Hi all,

I started a 12 months contract in July. The contract notice period is 2 weeks. I was served 3 weeks notice on 22nd of November in writing. Luckily I have managed to find a better contract to start next week - better rate, closer to home etc. Signed the contract this morning.
The agent on my current contract has called me to give the 'good' news - the client has withdrawn the notice. When I told him that I have got another contract and cannot continue, they threaten me to sue for loss of revenue, quoting I am in breach of the agreed contract.

Is the agent's argument reasonable, or more precisely, legal ? How should I approach this one?

I use my own limited , but contract is inside Ir35 - no substitution clause.

Thanks in advance for guidance.

Al