^ TopPreparing to go Contracting
Legal Issues For Contractors: An Introduction
Contractors have rights and responsibilities, just like employees. But the law that governs contracting is very different from that which regulates permanent contracts.
Dealing With Notice Periods Before Becoming a Contractor
If you’re ready to take the first step to independence and a greater income — that is, to become a contractor, you will need to handle giving notice to your employer properly.
Contractor Doctor: Can I Legally Go From Permanent to Contracting at the Same Company?
Answers the question from a permanent employee on whether they are legally allowed to immediately contract with the same company after leaving.
^ TopInitial Contracts with Clients/Agencies
Legal Issues for Contractors and Agents
What are your legal options when you work with agents? This article follows the process through from the first contact to termination.
First-Time Contracts for Contractors
The principles of business law, how contracts are made, and what contractors should look for in their first contract.
Contractors Should Have Schedules in their Contracts
Having a schedule in your contract is a good way to avoid IR35 and to ensure the expectations are clearly defined between contractor and client.
Contractors Should Take Care With Verbal Agreements
It’s fine to have a verbal agreement with your client or agent—these are valid contracts. Just take care in how you handle them.
Conduct of Employment Regulations: A Guide to Opting In or Out
You can make more money if you opt out, but there are consequences to consider.
Contractor Doctor: Are Agencies Legally Bound to Reveal Contract Margins?
When negotiating rates, it is useful to know the margin the agency is charging. But do they have to tell you?
What Contractors Should Do When a Contract Falls Through
When your agent sets you up with a deal, and it falls through at the last minute, is there any legal recourse?
Age Discrimination and Contractors
The Age Discrimination Act of October 2006 will not do much to help older contractors who cannot get work. Age discrimination is real in the contractor workplace, but there are some things you can do about it.
Contractors Need To Protect Intellectual Property
A clause in your contract will probably give all the rights to intellectual property developed on the job to your client. But you can negotiate a better deal.
^ TopContract Renewals
How Contractors Should Handle Ongoing Contracts
Contractors can enter into ongoing contracts without fear of winding up inside IR35. But attention should be paid to ensure compliance.
How Contractors Should Handle Contract Renewals
Contractors are never obliged to accept contract renewals. Feel free to negotiate a new contract, and never accept an agent's telling you that you have some obligation resulting from the previous contract.
How Contractors Should Handle Restrictive Covenants: Part 1 - The Agencies
Many contracts between contractors and agencies include clauses called restrictive covenants: they prevent the contractor from working directly for the client and some others. Here's how they work.
How Contractors Should Handle Restrictive Covenants: Part 2 - The Law
This is a largely untested area of contract law. But the law is broadly against restraint of trade in any form, so the burden of proof is on those who are defending restrictive covenants.
Contractor Doctor: Can My Agent Force a Margin Increase on Renewal?
Agents like to force through margin increases when contract renewal time comes up. They have the right to try to do this, but they cannot oblige you to do it.
When Contractors Are Between Contracts, They Still Get Paid
When your first contract runs out, and you're still working on renegotiating it or renewing it with the same client, you still get paid for your work.
^ TopContract Termination/Completion
When Contractors Terminate Their Contracts
There are a number of issues contractors should be aware of if they choose to terminate their contracts.
Contractor Doctor: Can I Leave Early Even Without a Termination Clause?
Advises an unhappy contractor how to get out of a contract without a termination clause.
How Contractors Should Handle Being Terminated
Being terminated can be a messy business, but contractors who handle it properly can make it a success.
Contractor Doctor: Can Clients Terminate You Before the Contract Ends?
This agency sent a contractor home a week early and threatened to refuse a reference if the contractor didn't go. The contractor can sue for the full value of the contract, and he can even take action about the reference.
Contractor Doctor: Are Restrictive Contract Clauses Enforceable?
Are clauses restricting working directly with the client enforceable in a court of law?
Can Contractors Legally Work for a Subsidiary?
Can you work for a subsidiary of a client when your agency says you cannot?
Contractor Doctor: Can I Sue The Agent For Failing To Give Notice?
If your agent doesn't respect the terms in your contract regarding notice, you still get paid. But you should be careful not to overreact and breach the contract yourself.
^ TopDisputes with Clients/Agencies
Contractor Doctor: Can Agencies Change the Rate of Pay Mid-Contract?
This agency is trying to change the rate due to a contractor on a contract that is already in force. They have no legal right to do this. Contractors shouldn't stand for it.
Contractor Doctor: Am I Legally Obliged to Train the Client's Staff?
Contractors do not have to provide services over and above those agreed in the contract, and clients cannot expect contractors to do so.
Can Agencies Change Contractor Contracts Midstream?
Suppose the client wants to change the conditions of your contract? You should be reasonable, but you do have rights.
When Contractors Dispute Working Hours With Clients
Some clients will simply pile on working hours without any consideration about what you've agreed to in the contract. Others will just add a few extra here and there. What are your rights?
Can Contractors Cut Out Their Agent?
Maybe you can, legally, cut out the agent, but it's probably not a good idea. Changing agencies at the clients request is a better proposition.
When A Contractor CV Goes AWOL
You have a right to keep control of your CV. And you can do something about it when agents don't respect this right.
Contractor Doctor: Did I Breach The Contract By Leaving Early?
If your contract doesn't permit termination, you have to stay the time. Leave early and you could be liable for damages.
Contractor Doctor: Can I Sue For a A Last-Minute Contract Cancellation?
If the client cancels at the last minute, you probably have the right to get some money for the time and effort you've made.
Contractor Doctor: Can I Be Forced To Take Time Off for Xmas?
Unless your contract specifies that you are expected to have periods of suspension, there is no reason why you should be obliged to take time off.
Handling Breaches of Contract Whilst Contracting
When agents or clients breach your contract, you should react with notification, and if appropriate and necessary, termination of the contract.
^ TopLate Payment
What Contractors Should Do About Late Payment
Late payment can become a thorn in your side. You do have some recourse if it does.
Chasing Payment Using a Letter Before Action
A letter before action is a formal letter to the company who owes you money informing them that unless they pay within a certain period you will commence legal action against them.
Contractor Doctor: How Can I Chase a Large Debt - Over £50K?
An agency has failed to pay a contractor for three months and owes them £50K. It's not a small claim, under £5k. We explain the process for collecting the money.
Contractors Can Get Help Collecting Debts
A debt collector may be able to help contractors collect unpaid fees faster.
^ TopRights + Benefits
Unemployment Benefits and Contractors Don’t Mix
Can contractors claim benefits when they are out of work? We explain the issues.
Contractors and Employment Rights: A Huge Can of Worms
Contractors don’t need employment rights, but situations do arise where a long-term relationship between a contractor and a client starts to resemble having a job.
Contractor Doctor: Can Contractors Take Holidays When They Want To?
This client has told the contractor that they cannot take off any time for holidays over the summer at all. Can they legally do this? Where does the contractor stand?
Agency Workers Directive - How Will It Affect UK Contracting?
The consequences of the Agency Workers Directive, which will make many contractors into employees, are not positive for UK contracting, nor even for the Revenue.
What is IR35?
Explains what IR35 is and how it affects contractors.
Getting Your Contract Reviewed For IR35
Advice and guidance for getting your contract reviewed for IR35.
IR35 Case Law
Explains the meaning behind ‘IR35 case law’ and provides references for finding out further detailed information.
Mutuality of Obligation - IR35
Mutuality of Obligation is a common phrase when dealing with IR35 Status disputes. What does it mean?
IR35 Legal Dangers of the Standard Agency Contract
John Antell describes the dangers involved with standard agency contracts and explains what to look out for.
What Contractors Need to Know about IR35 Compliant Contracts
Contractors need to understand that no contract can in itself remove the threat of IR35 evaluation from the Revenue. But there are some contract clauses that can help you stay outside.
Contractors Need the IR35 Confirmation Letter
Getting a confirmation of terms letter from the client could save you endless trouble and expense if you need to prove that you are outside IR35.
How Contractors Should Prove Being Outside IR35
Contractors should arrange to obtain and to keep certain documents to prove, as best as one can, that they are outside IR35.
Should Contractors Inside IR35 Have Employment Rights?
Contractors inside IR35 are taxed like employees, yet they have no employee rights unless they go to court to claim them. An unfair situation that the Government should resolve.
^ TopLimited Companies
What is Section 660?
What is Section 660? An overview of the legislation and how it affects contractors.
Small Business Late Payment - How to manage late payers.
Explains government legislation to protect small businesses and actions that can be taken to combat late payments.
^ TopGovernment Legislation
Proposed Changes to Managed Service Companies - Explained
Explains the legislative changes introduced in this years Pre-Budget Report
^ TopWhere to get help
The following organisations have specialist knowledge of the contracting industry: