Please help! Can I quit Fixed Term Assignment?

[leo123]

Hello!

I provide services as a contractor (via my limited company) to a client via an agency (my services are: developing software).

My contract (which is between my limited company and the agency) started at the beginning of 2015 and is for one year and in the clause "Notice of Termination Periods" it is saying:

Company to Service Provider: 1 Week
Service Provider to Company: Fixed Term Assignment

I want to quit and I agreed with the client that I will work for them till end of the week.
But when I contacted the agency, they said I cannot give notice to them, as I am on "fixed term assignment".

What does this really mean? That I cannot quit and have to work for the client till end of 2015?
But I already agreed with the client to quit by end of the week.

Can the agency sue me? (Nothing is written in the contract what happens if I quit early). Can they cancel the payments to me (thay month later after the work is done, so can the cancel the payment for the last month)?

Thanks in advance...

[wales01man]

Re: Please help! Can I quit Fixed Term Assignment?

The agency may have a claim against you if they lose commission for them by quitting you need to read the contract?

[leo123]

Re: Please help! Can I quit Fixed Term Assignment?

The agency may have a claim against you if they lose commission for them by quitting you need to read the contract?

Thanks!

I have such sub-clauses in "Termination" clause:

The Company may Terminate the Agreement forthwith should:

* A receiver, administrative receiver, administrator or similar officer be appointed to the Service Provider or any part of its assets or undertaking, or the Service Provider go into liquidation;

* The Service Provider be unable to fulfil the Agreement, as required for any reason;

* The agreement between the Client and the Company be terminated forthwith by the Client for any reason.

[ssparks2003]

Re: Please help! Can I quit Fixed Term Assignment?

You have posted this in the employment section and you would have been better off posting this in the buisness section as it is a commercial and contractual matter rather than an employment issue. the set up is as follows:

You are employed by a limited company, the limted company has a fixed term contract with an agencey to provide a fixed term service. You can leave the employ of the limited company, the limted company can agree to move you to another company. The issue is that the limited company has a contract to fulfill with the agencey and if you are the only member of staff then how can you be moved?

I would assume that you have set up a limited company to get around IR35? well the limited company has a contract with the agencey to provide staff and if it fails then the limited company will be liable to the agency. you could cliam that your limited company is unable to complete the contract; however since you have already discussed leaving it could be difficult to claim that you are not terminating as you have had a better offer or it is just not convinent for you.

[leo123]

Re: Please help! Can I quit Fixed Term Assignment?

ssparks2003, thank you for your response!

I now see that I probably was wrong in my judgements, but my understanding of "fixed assignment" in this case was that if the client does not agree that I leave, i.e. the client needs me to continue working, complete a project, etc., then yes, I cannot quit, as I am under "fixed assignment". But if the client agrees for me to quit, then how the agency can hold me not quitting?

After all the client pays the agency and the agency pays my limited company for the days I've worked for the client; i.e. if I don't work for the client, they don't pay. There is nothing in my contract saying how many days/hours I must work during month etc. and the contract is not saying that I cannot work in parallel for other clients.

So I am wondering what losses the agency can claim from my limited company and on basis of what they can calculate these losses.

After all the agency is a mediator between my limited company and the client, and this "fixed assignment" was for the case the client does not want to let me go.

[wales01man]

Re: Please help! Can I quit Fixed Term Assignment?

Common sense tells me to suggest getting a Legal opinion on this before you find yourself subject to a claim I would expect the contact is worded in a way to suit them not you but until its clear you will get differing opinions

[Mr $quandaŁot]

Re: Please help! Can I quit Fixed Term Assignment?

I'm not sure if the agency could realistically make a successful claim. The clause where they can terminate by giving you a week's notice but you are required to complete the project seems unfair and partial.

When I was a teenager I was told that you should always think carefully what you sign. I took it on board. For example, I always refuse to opt out of the EEA 2003 regulations. Some agencies don't like it but that's there problem, not mine.

[wales01man]

Re: Please help! Can I quit Fixed Term Assignment?

Have to agree with post 7 problem is most of us do not read the paperwork its sometime to long to complicated and most of it will never be relevant

[ssparks2003]

Re: Please help! Can I quit Fixed Term Assignment?

What the agency wishes to claim and what they would be awarded if anything with differ greatly. I personally belive the agencey is full of wind, but they could claim loss of earnings etc. I would be pretty fair to say that you wont get much work through that agent for a while.

Just remember, you are signing contracts as a director not as an employee.

[Mr $quandaŁot]

Re: Please help! Can I quit Fixed Term Assignment?

Have to agree with post 7 problem is most of us do not read the paperwork its sometime to long to complicated and most of it will never be relevant

This ignorance is not a good excuse!

Surely points like pay rate, notice period and obligations should be read before signing.