Reply to: Previous contract offer ignored.

[LondonManc]

I have been working as a contractor for a local authority, employed through an umbrella company.

My contract was due to finish at the end of March 2020, but back in February my manager verbally offered me a 6-month extension to October 2020 which I accepted in writing. The manager claimed she had received corporate approval to make this offer. At the time, I had two other offers on the table from other companies but decided to stick with my current employer on the basis of the extended contract.

They dily-dally about getting the contract signed. Then along comes Coronavirus. I received my notice, and my the HR department apparently has no knowledge of the previous contract offer made to me, claiming my contract was due to end by the end of March anyway. Because of this they cannot, or will not, furlough me!

I am currently working out my 4 week notice. But I have the written proof of me accepting the verbal offer of a contract extension to October, with my manager's reply saying how pleased she was.

We're at the back end of April. You therefore had your contract extended and then notice was served on that extension. They've been legal about it.

Thoughts on this? Are they legally obliged to furlough me? So far my agent has been making the case but we don't seem to be getting anywhere.

What options are available to me?

You're a contractor; end client can't furlough you as you're not their employee.

[northernladuk]

I disagree. There is such a thing as an implied contract. However, belt and braces is to get a signed document.

Technically yes but the lesson is still valid. Get a contract, read it and get it signed.

[Andy Hallett]

One of the first lessons of Contracting is that you do not have a Contract until a Contract is signed by both parties

I disagree. There is such a thing as an implied contract. However, belt and braces is to get a signed document.

[LondonManc]

Interesting point. So you mean that if there was no contract extension i should have finished on 31/03? By giving me 4 week notice they have effectively admitted I am still an employee?

In relation to your second sentence, there is a further complication. The client has ended the contract, but the Manager makes written reference to re-employing me in due course! Having their cake and eating it in my view!

You were never an employee - very important to understand that bit.

Given that you're still there, I'd say that your situation is this - you've had your contract extended (and by continuing to work after 31/3 then you've accepted by default) and then had notice served on it.

In terms of notice, they don't have to allow you to work it as a contractor - as others have said, it can vary as to whether they get you to work your notice or not and that's part of the financial risk that you get paid a lot more than a permie for (along with the fact that you don't get paid when you don't work, etc.) Some want you offsite because there's no point you being there or budget has been pulled. Some want to maintain a good reputation among contractors and will have you work your notice.

[SimonMac]

Interesting point. So you mean that if there was no contract extension i should have finished on 31/03? By giving me 4 week notice they have effectively admitted I am still an employee?

In relation to your second sentence, there is a further complication. The client has ended the contract, but the Manager makes written reference to re-employing me in due course! Having their cake and eating it in my view!

re-employ? Not quite, they want to re-engage with you at a later date. The distinction is subtle but very important

[northernladuk]

It's nluk's job to read & reply to every thread and he gets irritated when new users haven't read through the >100k existing threads (as he has) before posting

To be fair, even if I've only posted 1 piece of useful advice in my 40k+ posts it's one more than you have.

[jayn200]

That sucks that happened to you. I'm sure similar things have happened to many people. Even those with signed contract extensions will be told they are putting all contractors on hold until situation improves (some projects may never resume).

Like others have mentioned umbrella companies aren't furloughing people anyway, so either way you're screwed.

Actually, in reality, you are quite lucky they are giving you 4 weeks of work.

[pr1]

Other people are still making useful, relevant and helpful points - SimonMac, Paryltic, etc. It is always interesting to hear that others have had similar issues - LondonManc, etc.

I am grateful to all of them and I am learning a lot, and understanding my situation much better from posts this morning and yesterday.

So I completely understand why I am here. I have no idea about your motivation though? - you clearly have other places you would rather be?

It's nluk's job to read & reply to every thread and he gets irritated when new users haven't read through the >100k existing threads (as he has) before posting

[hairymouse]

One of the first lessons of Contracting is that you do not have a Contract until a Contract is signed by both parties

And even then all you've got is a contract, you are still a few steps away from actually getting money.

[northernladuk]

So to try summarise the points needed in this mail....

• Never work under a verbal contract. It's fraught with complications so don't do it.
• Understand your relationships. It's client--> Brolly --> you. You have no contractual relationship with the client so cannot agree contracts. You are an employee of the brolly
• Managers very rarely have the authority to sign contracts so always take with a huge pinch of salt and refer to the point above.
• Never work past an end date. You have an implied contract but it's fraught with complications
• Notice periods tend to mean nothing in contracting. You get paid for the day of work you do. If they pull work you don't get paid so the equivalent of instant termination. If they honour it you've done wwll
• You are never an employee of the client. You are inside so considered one for tax but not for employment law. Totally different.
• Contractors never take anything through the courts. It's just not worth the cost. Even if it's not legal you negotiate a result. Anything else past that just be economically viable.
• Even if you take them to court they will invoke notice and pull the work. Effective instant termination.
• You cannot claim for losses for the 6 months. You didn't work it therefore you didn't lose it.
• Building bridges is more important than causing a fuss. They may invite you back after all this is over but not if you've thrown the teddy out of the cot and made a scene.
• A lot about contracting doesn't seem 'fair'. It's just the way it is.

I think that's most of the points and a few you've not asked about yet.

[LondonManc]

i know a number of people have made a similar point, but I am not convinced this is legally correct.

I understand that legally a verbal contract is a valid contract, barring some exceptions such as agreements involving property or guarantees.

Is a Verbal Contract a Valid Contract? - Saracens Solicitors

Of course, as Paryltic suggested earlier, that would be dependent on having the time, energy and resources to go through the courts!

I'm convinced it is. They can simply turn round and show you the list of authorised contract approvers and, guess what, your manager isn't on that list. If they weren't in a position to sign it, then it's null and void.

Point two on that is even simpler. Your pass gets revoked when they expect you to finish. How are you going to get to do your work if you cannot access the systems? You won't get an approved timesheet and you won't have any proven work to invoice against in the absence of a timesheet. Therefore, you're even worse off because you've foolishly incurred expense trying to create work for yourself that has never had an authorised purchase order.

[JamesC34]

I'm not sure why you are still going on about this. Every one has told you the score and nothing is going to change. You don't have a case at all and you aren't going to take it up anyway.

Getting offers and having them pulled is part of contracting. The lesson here for you us don't accept verbal offers and you have no relationship with the client, your umbrella does so it's not for you to be accepting anything. You are employed by the umbrella. It's them that do the accepting.

No point trying to explain every step to us. We aren't really bothered and you aren't going to convince us of anything. We have seen 100's of these types of threads and they all come to nothing I am afraid.

At the end of the day even if they admitted they offered it to you they could just pull the work and you don't get another penny. You'd go ballistic if that had happened but it can.

The gig is done, learn the lesson and move on. There is no need for a 3 page thread on this subject I am afraid.

Other people are still making useful, relevant and helpful points - SimonMac, Paryltic, etc. It is always interesting to hear that others have had similar issues - LondonManc, etc.

I am grateful to all of them and I am learning a lot, and understanding my situation much better from posts this morning and yesterday.

So I completely understand why I am here. I have no idea about your motivation though? - you clearly have other places you would rather be?

[SussexSeagull]

I have never worked through an Umbrella but does seem odd you have worked four weeks after your contract expired. Most of us tend to be out the door and not look back on the day our contracts expire.

[northernladuk]

I'm not sure why you are still going on about this. Every one has told you the score and nothing is going to change. You don't have a case at all and you aren't going to take it up anyway.

Getting offers and having them pulled is part of contracting. The lesson here for you us don't accept verbal offers and you have no relationship with the client, your umbrella does so it's not for you to be accepting anything. You are employed by the umbrella. It's them that do the accepting.

No point trying to explain every step to us. We aren't really bothered and you aren't going to convince us of anything. We have seen 100's of these types of threads and they all come to nothing I am afraid.

At the end of the day even if they admitted they offered it to you they could just pull the work and you don't get another penny. You'd go ballistic if that had happened but it can.

The gig is done, learn the lesson and move on. There is no need for a 3 page thread on this subject I am afraid.

[JamesC34]

Sounds like the manager can make the offer but not authorise it. Either that or it was pulled and they didn't have the courage or courtesy to tell you.

I had an offer outstanding that was 99% of the way there - cost me about 10-12 grand in lost revenue because I turned a contract down at a different client for it.

Unfortunately you haven't got a leg to stand on as no contract was issued.

One of the first lessons of Contracting is that you do not have a Contract until a Contract is signed by both parties

i know a number of people have made a similar point, but I am not convinced this is legally correct.

I understand that legally a verbal contract is a valid contract, barring some exceptions such as agreements involving property or guarantees.

Is a Verbal Contract a Valid Contract? - Saracens Solicitors

Of course, as Paryltic suggested earlier, that would be dependent on having the time, energy and resources to go through the courts!