Reply to: An alternative to notice period clause

[Spacecadet]

Have you read yours?

Big assumption that I'm going through an agency there!

[jonathanOnshore2010]

Isn't there such a concept as a "fair contract" which can be disputed under law regardless of what you sign?

[Wanderer]

They don't fire you, they simply terminate the bit of the contract of supply with the agency that includes your services. At which point the contract is null and void. At which point, you aren't owed notice.

So it comes back to my question. What does the notice period (from the agency to the contractor) mean? If the contract can be terminated under the clause you point out then why do they include this "notice period"? It makes no sense.

Here's an idea. We know the client is aware of the notice period for the contractor because this is one of the terms written into schedule of the agency->client contract. If the client wants a contractor off site (for no good reason other than early termination), the agency demands that the notice period is paid. They then refuse to pass this on to the contractor. Nice little earner for them.

How do we know that this isn't happening?

[SueEllen]

Have you read yours?

I read mine and make sure mine don't have such a clause in it.

The client can terminate my company if my company's supplied consultant(s) are not up to scratch or the work runs out.

The agency can only terminate with reasonable clause including in some cases the client not paying them.

In regards to early termination fees - I got one once but then I was direct.

[malvolio]

That looks like its from a very dodgy agency contract which should have been contested before signing!

Have you read yours?

[Spacecadet]

Yours, probably. A recent one I've seen contained, inter alia,

They don't fire you, they simply terminate the bit of the contract of supply with the agency that includes your services. At which point the contract is null and void. At which point, you aren't owed notice.

QED.

That looks like its from a very dodgy agency contract which should have been contested before signing!

[malvolio]

What contract has an "Any Reason" termination clause?

Yours, probably. A recent one I've seen contained, inter alia,

[If] for any reason the Client terminates its corresponding agreement with the Company in relation to the provision of the Services by the Supplier or requests that the Consultant be removed or replaced as consultant, and, for the avoidance of doubt, the Company shall incur no liability for Losses in connection with any such termination.

They don't fire you, they simply terminate the bit of the contract of supply with the agency that includes your services. At which point the contract is null and void. At which point, you aren't owed notice.

QED.

[Spacecadet]

Because the client will not have usd the "Notice of Termination" option, he will have used the "Immediate termination for any cause"

What contract has an "Any Reason" termination clause?

[malvolio]

Also, I dont see how getting paid a contractual termination clause is going to be a pointer to IR35.

Because the client will not have usd the "Notice of Termination" option, he will have used the "Immediate termination for any cause" part of the contract. Therefore no extant contract, no notice owed. How hard is that to understand?

Also, since we're all such expert businessmen, how would it sit with a client if you sued them for something you're possibly not owed. What chances of going back the next time they need your skills? Way better business decision not to burn bridges. And if they aren't likely to want you back, could that be why they terminated early and aren't going to pay you anyway?

Now can we drop this, it's getting tedious.

[psychocandy]

Takes 10 minutes to fire off an invoice.

Then you've got a couple of months before any chasing is actually needed

I agree with Spacey here. Why not give it a blast? Not suggesting devoting your life to it (like that kitty fella in the other thread) after all.

Also, I dont see how getting paid a contractual termination clause is going to be a pointer to IR35.

After all, try phoning vodaphone and telling them your cancelling your phone contract from today - it wont happen. The contract you signed allows them to charge you for a notice period whether you intend to use the phone or not.

[Spacecadet]

I have yet to find myself in the position where I would get more money by chasing a early termination penalty than I would by getting on with my next contract.

Takes 10 minutes to fire off an invoice.

Then you've got a couple of months before any chasing is actually needed

[Support Monkey]

@spacecadet - too much wrong in that post to worry about trying to answer it all, but in terms of "you can't just let yourself be shat on by all and sundry. " I have yet to find myself in the position where I would get more money by chasing a early termination penalty than I would by getting on with my next contract.

YMMV. Deal with it as you will but I prefer my approach. Neither of us is wrong, but mine is a reasonabele IR35 defence should it be necessary.

Exactly

[malvolio]

@spacecadet - too much wrong in that post to worry about trying to answer it all, but in terms of "you can't just let yourself be shat on by all and sundry. " I have yet to find myself in the position where I would get more money by chasing a early termination penalty than I would by getting on with my next contract.

YMMV. Deal with it as you will but I prefer my approach. Neither of us is wrong, but mine is a reasonabele IR35 defence should it be necessary.

[Support Monkey]

I don't know why people get so wound up about notice periods,

Yes i know they can have cancellation clauses or its the principle of the matter but seriously who cares, and yes the contract could get canned tomorrow or could run for 10 years but i get paid a shed load of money to turn up and do a job so to spend time worrying about a few weeks money its beyond me and to be honest i think it comes down to peoples insecurity "will i get another contract"," will i be on the bench" maybe anyone having these insecurities should take a proper job where notice periods are the norm

[Qdos Contractor]

If a contract terminates early and the contractor still gets paid then this will reaffirm the existence of MOO for the duration of the contract. It is a question often asked by HMRC during an IR35 enquiry.