Contractor doctor: can I sue the agent for failing to give notice?

InTouch Accounting

Dear Contractor Doctor,

I signed a contract for a five-month stint on an IT help desk. The contract states that the agency must give me two weeks notice in writing before termination.

Instead, my agency gave me three working days notice verbally.

But because my agency breached my contract, I decided not to attend work for the remainder. My contact at the agency is now withholding my wages and refusing to give any information, apart from saying that I have breached my contract.

Could you give me some advice on this please?

Kind regards,

Maria

Contractor Doctor says:

Well, in a way, you're both right. You both breached the contract: you, by staying out of work, and the agency by not giving proper notice.

That fact doesn't help either of you. It is a pity that you chose to breach the contract, because it detracts from what would otherwise be a very sure legal position.

We reviewed your contract, and it shows that you can be terminated without notice if you wilfully violate the agreement. So the agency could argue that you did so by staying out. This means that your breach of contract affects your ability to claim for the full notice period. Otherwise you could have demanded full pay for the entire notice period.

With all that said, the agency could at best claim any costs incurred for the period you were out, meaning whatever commission they would have earned on your work during that time. That's not much money.

You, on the other hand, have assured us that you have signed timesheets covering every hour you worked. You have every right to payment for all that time regardless of all the issues raised by the breaches on both sides.

When you perform work in the framework of a given contract you have to be paid. You of course don't have a right to payment for the time you did not work.

Write to your agency and tell them that--this should be a formal ''letter before action.'' If they still won't pay up, try MoneyClaim Online to get quick legal action if the sum involved is less than £5000. If it's more you need a solicitor.

Good luck with it!

Contractor Doctor

Published: Thursday, February 21, 2008

© 2012 All rights reserved. Reproduction in whole or in part without permission is prohibited. Please see our copyright notice. If you want to use any content you have seen on this site then please request our media pack and ask for details of our Content Licencing Service.


Readers Comments...


  
Bookmark and Share
  
     
  

Latest Site Updates

P35 guidance: unsure contractors should answer ‘no’ to service co question, says HMRC P35 guidance: unsure contractors should answer ‘no’ to service co question, says HMRC

Contractors are not legally obliged to answer the P35 question 6, ‘Are you a Service Company?’, and if they’re unsure should answer ‘no’.

No certainty from HMRC’s new IR35 framework, but the policy debate must be sustained No certainty from HMRC’s new IR35 framework, but the policy debate must be sustained

No certainty for limited company contractors yet, but the policy debate is far from over, say OTS Tax Director John Whiting and PCG’s Simon McVicker.

IR35 certainty for contractors? So close and, perhaps, not so far IR35 certainty for contractors? So close and, perhaps, not so far

Contractors are very close to enjoying a potential three-year rolling’ IR35 amnesty’ if we keep our nerve and help HMRC improve its new test regime.

“Keep calm and contract on”, IR35 experts tell contractors following HMRC’s new tests “Keep calm and contract on”, IR35 experts tell contractors following HMRC’s new tests

It’s IR35 business as usual for contractors – IR35 experts Andy Vessey of Qdos and Kate Cottrell of Bauer & Cottrell respond to the new HMRC tests.


  
  

Twitter

  • UK unemployment falls by 45000 in the three months to Match: ONS Labour Market Statistics: http://t.co/TirSQ6ai

    22 hours ago

  • Manufacturers urge government to offer more support to the sector: BDO survey http://t.co/73Z9AUFz via @BBCNews

    23 hours ago

  • No certainty from HMRC’s new IR35 framework, but the policy debate must be sustained http://t.co/idtjsXEj

    Wed, 16 May 2012

  • IR35 certainty for contractors? So close and, perhaps, not so far http://t.co/8v7LDXcI

    Tue, 15 May 2012

  • Financial sector jobs at six-month high: Morgan McKinley London Employment Monitor April 2012 http://t.co/8qbyoEje

    Mon, 14 May 2012

  • Interims won't take public sector assignments under PAYE says Interim Management Association chair http://t.co/uMXMguQi via @Publicleaders

    Mon, 14 May 2012

Follow Us On Twitter


  
     

  
  

Contractor solutions

Contractors Handbook AM Limited IR35 Test
  
Contractor accountants - pricing checklist
  

Contractor solutions

Bedouin Group

No more IR35. Retain up to 85% of your earnings.

Choice Premier Pay+

Take home up to 85% of your pay. IR35 solution.

Contractors Handbook

The expert guide for UK contractors and freelancers

InTouch Accounting

Person to person contractor accountant. Free IR35 review.

Parasol Group

Umbrella or Limited? Guidance on best options, and take home pay.

NA Bedouin Group D J Colom Accountants Contractor Financials NewsNow
  
Elevate

  

The UK's leading contractor site. Independently audited traffic (ABC) – 156,346 monthly unique visitors.