Contractor doctor: did I breach the contract by leaving early?

InTouch Accounting

Dear Contractor Doctor,

A year ago, I left a contract giving 1 week's notice. My contract with the agency stated that my notice period was "N/A". From my understanding the term was ambiguous in a business sense and did not stipulate either that I couldn't give notice or that I didn't have notice to give.

The agency is still withholding my last payment saying that I am in breach of contract and can be sued if I persist. Can you shed light on this type of notice and on what it actually means?

Thanks,

Chris

Contractor Doctor says:

It is not unusual for contractor agreements to lock contractors in without possibility of termination. According to the Hove-based legal consultancy Lawspeed, it is entirely standard in the contracting industry for contractors to be locked in to a short-term contract without the right of termination.

Why should contractors not be able to terminate? Because they have signed on as guaranteeing the completion of a specific project, so they can hardly decide that they no longer wish to finish it.

The use of the abbreviation 'N/A' in your contract is less typical, but it clearly means 'not applicable,' which simply means that you had no right to terminate.

If you had intended to include the right to terminate in the contract, you should have negotiated a clearly defined termination clause. You would then have been able to invoke it when you wanted to leave.

We wish that the news were better, but under the circumstances, you have no apparent right to your final payment. Indeed, you breached the contract by leaving and you could be liable for damages. Best to leave this one alone and to move on.

Good luck with your future contracts.

Contractor Doctor

Published: Thursday, September 27, 2007

© 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.

Technical-E


Readers Comments...


  
Bookmark and Share
  
     
  

Latest Site Updates

Project management contractor does it ‘by the book’, literally, to win first contract Project management contractor does it ‘by the book’, literally, to win first contract

Project management contractor Ken Burrell won his first contract, and just secured his first renewal, by acquiring & applying new contracting skills.

ContractorCalculator Market Report February 2012 ContractorCalculator Market Report February 2012

Contractors received a PR boost in Davos and have a target rich contract market if they can pick the winning sectors of the UK’s two-speed economy.

Plenty of rules for us; no rules for them Plenty of rules for us; no rules for them

Contractors could be forgiven for assuming HMRC only targets the public over tax avoidance, while the political elite are left to get on with it.

IR35, tax avoidance and Ed Lester: a potent mix threatening contractors’ livelihoods IR35, tax avoidance and Ed Lester: a potent mix threatening contractors’ livelihoods

Contractors are right to be worried by interim management contractor Ed Lester’s trial by media, because an unjustified backlash might be the result.


  
  

Twitter

  • HMRC extends anti-avoidance campaigns to construction trades and traders using new online search technology http://t.co/walUSlzX

    6 hours ago

  • Project management contractor does it ‘by the book’, literally, to win first contract http://t.co/8H4wfIhk

    14 hours ago

  • Contractor demand increased in January but billings down - a mismatch of demand and supply? REC/KPMG Report on Jobs http://t.co/E4npw1Q3

    14 hours ago

  • Contractor Newsletter, Issue 62: February 2012 http://t.co/SxRdnKm1

    Tue, 07 Feb 2012

  • It sounds glib, but a good start in reducing govt's gob-smacking costs (http://t.co/tzOGMPa1) would be to invest in pro interims/contractors

    Tue, 07 Feb 2012

  • £10.9bn of unpaid tax written off by government; Treasury failed to spot worrying trends http://t.co/7PKjoXVe via @NewStatesman

    Tue, 07 Feb 2012

Follow Us On Twitter


  
     

  
  

Contractor solutions

Contractors Handbook AM Limited ContractorCalculator Marketplace InniAccounts AWR Whitepaper IR35 Test
  
Contractor accountants - pricing checklist Contract jobs board
  

Contractor solutions

Contractors Handbook

The expert guide for UK contractors and freelancers

Bedouin Group

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

Parasol Group

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

InTouch Accounting

Person to person contractor accountant. £85 pcm. Free IR35 review

Choice Premier Pay+

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

NA D J Colom Accountants Bedouin Group Contractor Financials NewsNow
  
Contractors Handbook

  

The UK's leading contractor site. Independently audited traffic (ABC) – 133,141 monthly unique visitors.