Canceling a Contract ?

[LazyFan]

This is exactly the con the clients and agencies are doing.
My contract used to have a clause saying 4 weeks and then elsewhere quite a few clauses away it had another stating, that if I did not work the hours I could not bill.

So, the client could say “bye bye here is your 4 weeks notice” and then demand I do not come into work. Then with no hours done, I am unable to bill the agency. Thus in affect your contract has ended immediately. But it's worse than that, as you cannot get another contract for 4 weeks (well legally anyway). So, your trapped in case they do need you back for maybe the last week to do some documentation or whatever.

Now my contract has a 7-day notice and I do not care. That’s because I know its all pointless anyway with the no hours no billing clause. You will find most clients can heave ho you off site, with no compensation anyway. As most contracts are like that with agencies. The best way is to have no agency as we know. But with all these companies having PSL's that’s like almost impossible.

Anyone got a blue chip JAVA contract on the go in the London area with no agency involved?

No? I thought not. I will stay where I am and keep dreaming!

[VectraMan]

My contract says 1 month notice (now I've passed 3 months), but I've always assumed it's unworkable. For instance, in theory they can say one day "we don't need you tomorrow", and I only claim for 4 days that week, which is part of being a contractor. If they give me my month's notice, then what's to stop them saying they don't need me for any of those days and paying me zero? I'm still on the books as a contractor, just working 0 days per week.

[Xenophon]

Lini: Don't be put off. Many of us (including myself) jumped off the cliff with no safety net. I actualy took a 3 monther abroad at a reduced rate as a loss leader just to get started. No savings no nothing. Lived cheap, spent very little and built up a reserve.

Same here too. Went for a 3 monther in the UK and was still there 12 months later.

[TheMonkey]

That is what I said (I think). Risk = outside IR35. Short notice = risk. SOme IR people require use of said clause to show its veracity (sp?).

Lini: Don't be put off. Many of us (including myself) jumped off the cliff with no safety net. I actualy took a 3 monther abroad at a reduced rate as a loss leader just to get started. No savings no nothing. Lived cheap, spent very little and built up a reserve.

Worked for me too. Don't be afraid to take your permie notice period off sick if you need to start sooner.

Ironically I've had permanent jobs that have lasted less than a week. I tend to quit in disgust.

[The Lone Gunman]

Is this true TLG? My understanding was that a short (ideally zero) notice period was a pointer to being outside of IR35.

Anyone care to confirm?

That is what I said (I think). Risk = outside IR35. Short notice = risk. SOme IR people require use of said clause to show its veracity (sp?).

Lini: Don't be put off. Many of us (including myself) jumped off the cliff with no safety net. I actualy took a 3 monther abroad at a reduced rate as a loss leader just to get started. No savings no nothing. Lived cheap, spent very little and built up a reserve.

[Pondlife]

Strangely, the short term cancellation of a contract is seen as risk for IR35 purposes, but only if it actualy happens!

Is this true TLG? My understanding was that a short (ideally zero) notice period was a pointer to being outside of IR35.

Anyone care to confirm?

[linickx]

thanks people, this has been v.helpful.

kind regards,
Nick

[Clog II The Avenger]

Beware of agents advertising long contracts. They often do this when they have a short contract at a low rate. They will then make think that it is a long contract so the rate doesn’t matter so much and you will find out the hard way that the client only wants you short term. The answer is ask the client how long he needs you.

If you are that worried I don’t think you should go contracting.

[The Lone Gunman]

Most contracts wont end early, but some do. Funding is removed or research changes viability status.
This is part of the reason contract rates are so good (ha ha).
You need to decide if ti is worth the risk.
As advised above, it is easier to take the risk if you have enough in the bank to be out of work for a while. I try to keep 12 months "wages" in a slush fund for such emergencies.

Strangely, the short term cancellation of a contract is seen as risk for IR35 purposes, but only if it actualy happens!
I have tried building in penalty clauses to my contracts, but have so far failed to get them accepted. I have let them slip rather than walk away except once where I felt the risk was too great.
I try to add a clause which states that all works will be carried out at an agreed hourly rate for an agreed period of x months. Then add that should the contract be terminated before 3/4 term that all hours worked will be billed at my short term contract rate (usualy treble my 12 month rate).

[lukemg]

Gives clients a lot of comfort knowing they can cancel contracts, hence not 3 rounds of interviews like for permies. In reality, it is still effort getting the budget, reviewing CV's, interviews, making a decision, possibly waiting for people to finish other contracts, or getting turned down. They don't want to do this again, therefore, they are usually settled into keeping you for the time period specified. You have to really try hard to get binned in the first few weeks, you must be able to do most of the stuff you claimed you can (although some leeway on this I find) but the key thing is to not annoy people. I started one contract when a chap had been told he was out after 3 days because he got on everyone's nerves.
It's basic stuff, keep your head down, pick up the vibes in the area, undercurrents, level of banter, details about people's lives. You are on your best behaviour and work the room accordingly. Over time you get a lot more flexibility. If you are basically normal and personable and have the skills they ask for (note - the job is ALWAYS easier than anything you expect or have been told) then it is not a concern. Turn up with attitude, start believing your invoice rate means you rock and it could be a problem.

[chock]

I've known people to get told they're not needed before they've even started (purchase orders being knocked back when they were 'definitely' through)
I've seen clients give 1 day's notice before
Where I'm working at the moment is best. They have a rule that states they'll give one month's notice to contractors.
Always save a hefty pot before making them jump.

[linickx]

Hi,

I'm a permy, and I'm discussing with my wife about making the jump; obviously I understand that each contract is different, but one of the things that is most concerning is contracts ending early.

What is considered "normal" for a client deciding they don't need you any more, a days notice, a week, a month? Obviously the worst thing that could happen is for me to leave "permy land" work for a week of a 6month contract and be left with nothing.

Comments about your experiences would be appreciated.

Many Thanks,
Nick