A reader sent us this query after his contract was terminated.
IT Contract Was Terminated
My contract was terminated early by the client claiming there was not enough work for me to do. This took me somewhat by surprise because they had only just asked for an extension.
I knew something was up because they took work away from me on the Monday, and on our Tuesday afternoon progress meeting they informed me that Wednesday would be my last day. How can the client do that if my contract runs until the Friday?
Umbrella Company Not Helpful
It‘s been going on since the middle of March and I‘m getting nowhere.
I‘m having no luck with my agency, and my umbrella company haven‘t been too helpful either.
The long and short of it is should the client honour the days they owe me?
Contractually – can a client terminate your contract willy nilly?
Breach of Contract
Surely this is a breach of contract, and if so how do you go about claiming back the two days?
Any help or advice I would greatly appreciate.
I’m no a legal expert but I would think that a contract is a contract is a contract and that they have to adhere to the details of it.
I would invoice them for it and see if they pay.
If they don’t I would send them a lawyer’s letter, with a copy sent to someone senior at the company.
It doesn’t cost much and it usually gets the attention of the person that you send it to.
Bad Publicity for Company
It’s not worth the bad publicity for companies to be in a legal battle over money. Those higher up in the company will point this out to those involved.
If that doesn’t work you could also try to reclaim the money at the Small Claims Court.
Again this would be bad publicity for the company and a waste of time for them as you would win, providing the contract is, as you say, on your side.
They are basically trying it on and will concede when you press them.
They know they are in the wrong but are hoping that you don’t push it.
IR35 – No Mutuality of Obligation
There is one thing for you to consider, though.
The fact that they did this, though, would help to push you outside IR35 and could save you a lot in tax.
It would mean that there would be no Mutuality of Obligation which is one of the major pointers for being caught by IR35.
So, you could, perhaps, save more money by not pursuing this than you might get for the two days pay that you might lose.
I don’t know how this works as you are already inside an Umbrella Company but a quick chat with an Accountant (and the initial chat would be free) might be worthwhile to see if you are outside of IR35 and how you could claim for all sorts of expenses.
If anyone else has any ideas or suggestions for this contractor whose contract was terminated feel free to add them in the Comments section.
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