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taratill
taratill, Solicitor
Category: Employment Law
Satisfied Customers: 6305
Experience:  15 years experience of advising on employment law matters
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I am the director of a limited company that has a contract

Resolved Question:

I am the director of a limited company that has a contract with an agency to supply technical subcontracting services to a International I.T Consultancy. The notice period is:
7 days from the agency to the limited company (me)
0 days from the company (me) to the agency
with the following clauses:
- The agency may terminate these terms of engagement by giving the company 7 days written notice
-The company (me) acknowledges and agrees that it shall not have the right to terminate this agreement for any reason prior to the end date of this agreement other than for a material breach of this agreement by the agency which cannot be remedied within 21 days of receipt of written notice from the company to the agency.
My question is, If i give 7 days notice (They wish me to serve a months notice as they cannot fill my position due to a huge round of redundancies) Will the consultancy be able to pursue me for loss of contract value for not serving the rest of the contract (currently 8 months away)
Thanks!
Submitted: 2 years ago.
Category: Employment Law
Expert:  taratill replied 2 years ago.
taratill :

Hello my name is ***** ***** I am happy to help you today. Is there likely to be any loss of value in the circumstances you describe?

Customer: Hi Jenny. The recruitment agency will lose the commission that they make on me being on site, (anything between 10 / 30% of my day rate which is £350 p/d) for the duration of the contract.
taratill :

Do you have it in writing from them that they are prepared to accept a month's notice because they cannot fulfil the obligations of the contract? are you saying that they cannot fulfil it now which is why you wish to give 7 days?

Customer: I recived a chat message from them yesterday saying that they would release me from the contract with 4 weeks notice. Te reason I wish to leave the co tract for a complex list of reasons. I am suffering stress working for this company after a 5 year engagement , comi to work everyday is awful. I have also managed to secure a new role that would be better suited to my career.
taratill :

The safest option would be to give the months notice as there is a risk that they could attempt to recover their losses for the remainder of the contract if you give 7 days and you cannot demonstrate there has been a material breach. In the event that you chose to give 7 days I think you have a strong argument that there losses should be limited to a month as they were prepared to allow a month's notice.

taratill :

It really depends on whether you think that they are likely to be litigious and whether it is worth the stress of a potential claim.

taratill :

If you have any further questions please do ask.

Customer:

Thanks Jenny. All discussions upto this point have been verbal, I do have a chat transcript from the agency stating that they will let me work 1 months notice however. I will try and recover this tomorrow when i am in work. I don't feel that they will pursue me for the funds however they do hold 3 weeks worth of invoices and i have been told that they may not pay these should i not come into work next week. I will be asking them to backdate the notice period to 3 months ago when i originally tried to leave the project.

Customer:

I would really like a a face to face or a contract interpretation session with an employment solicitor. If this is something you could off, please advise and i would be happy to pay for this and proceed.

taratill, Solicitor
Category: Employment Law
Satisfied Customers: 6305
Experience: 15 years experience of advising on employment law matters
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