Hi thanks for your question. My name's XXXXX XXXXX I'm going to assist you with this.
First, could you give me a little for information. Most importantly, what sort of services you provide and on what basis you are paid for them (i.e. is it a fixed fee agreement, payable monthly, or do you provide your services on a commission basis etc.)?
We provide a training service covering H&S courses. We invoice them at the end of the month.
We offer a selection of Health & Safety training on an ad hoc basis. They usually just email us their requests and we facilitate. We bill them on a monthly basis (30 days) when any training has taken place within the month. The reason for the termination is that's its going to a big player who has recently taken on the HR for the entire company and we don't offer Management training and they want to keep things tidy. They have not been disappointed with our services since 2008 when the contract was won. just feel we need to put up at least a little fight.
Thanks for the additional information.
If the agreement states that your customer is obliged to serve 3 months notice before termination, then it will usually be bound by the remaining contractual obligations during the 3 month notice period.
The next thing to consider is precisely what obligations they have and what rights you are entitled to. For instance, if they agreed to use you as their exclusive supplier of H&S courses, they may not be able to use an alternative provider until the end of the three months. Also, if they agreed to purchase a minimum amount of services from you on a monthly basis, they may also still be bound.
If it is completely "ad hoc", there are no minimum orders or exclusivity requirements and they are not obliged to make any payments to you unless they choose to use your service, then they may well decide to start with their new provider before your contract terminates. Of course, depending on the terms of your agreement, you are unlikely to be obliged to assist them with their early transition if they do this.
Check the contract. Even if they won't be in breach if they start with the new provider before the end of the termination period and there is no economic disadvantage to them in doing so, there may be something that at least makes it adminstratively or practically burdensome for them. This may then provide you with some leverage.
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