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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3655
Experience:  Solicitors 2 years plus PQE
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I work on a self employed 24 month conract with a 6 month break

Resolved Question:

I work on a self employed 24 month conract with a 6 month break clause and have done so with the same company for six years now.
The contract was up on the 31st August but I am still providing the my services is a new contract automatically assumed at the same rates or is the contract finished?
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Could you send me the exact wording of the break clause?
Customer: replied 1 year ago.
Hi Alex,
1.This agreement will commence on 1 September 2013
and last for 24 months until 31 August 2015. ("the term").it may be terminated by either you or X on written notice of 6 months to be given at any time.
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
Does the agree say anywhere what is supposed to happen on expiry of the term? Does the agreement terminate automatically?
Also are you paid for your services on a monthly basis?
Kind regards
AJ
Customer: replied 1 year ago.
1.No
2.The only wording with regards ***** ***** was what I sent to you.
3.Yes
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. The problem is the wording of this contract is vague, that said you can take either the view that (i) The contract is 2 year contract with a 6 month break clause or (ii) The contract is a 2 year contract (terminable on 6 months notice at any time) and then becomes a rolling contract terminable on 6 months months notice.If you continue providing the services and you are outside the term, I think it is far to assume that the pricing for services should stay the same - the question is whether you can then be terminate on one months notice (as per payment terms) or six month notice - to determine this can you confirm what normally used to happened when you required a contractual renewal - would they send you the details six months prior to the expiry of the term? Kind regards AJ
Customer: replied 1 year ago.
They generally run late,last time this contract was renewed in November and was back dated to run concurrently from the 1 st Sep 2013
But this time they are wanting a meeting now to obviously try and cut my rate.
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. What are you more concerned about the 6 month notice or the rate? Ultimately the six month notice is only relevant if this is an exclusive contract, because ultimately they could just serve you with six months notice and not give you the work. If it is the rate you are concerned about, there is nothing that forces you to do any work at a lower rate. If the contract is out of term and they want you specifically to do the work, they will have to come to a rate that is mutually acceptable.
Customer: replied 1 year ago.
What is an exclusive contract please?
I am contracted to do 4 items of work per month for an annual amount broken down into twelve monthly payments.
This month I have supplied two so far but they are out of contract.. Are they
obliged to serve me with a six month notice period from now or can they just pay me an extra months and say good bye?
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
An exclusive contract would be one where they are exclusively required to give the work to you and no one else.
The two items of work you have done so far should be assumed to be paid at the agreed contractual rate- as you have not agreed a rate reduction.
The notice period is not clear cut I am afraid. I think they probably only have to give you one months notice as you are out of term, but eve if they did have to give you six months notice to terminate if they are not actually obligated to give you work then there would not be any grounds to pay you - the six month notice period may be redundant in that regards.
Kind regards
AJ
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