How long do I have to cancel an employment contract

[JayD2011]

Hi All,

 

Am in a terrible situation at the moment. I am self employed and signed a contract on the 25th September to complete 6 months work for a company providing some training services for £160 per day. On Friday, I was offered another contract for £320 a day for the same length of time. I informed the first company immediately and this morning have received an e-mail stating the following.

 

In relation to our discussion yesterday. On Wednesday 26th September you emailed me your signed six month contract. You are scheduled to start work with us on .....Oct, and I have assigned you to start on a project.

We are expecting you to honour the contract you signed. The time and effort to source a replacement trainer will be costly, and we will be subject to a loss of revenue if we are unable to fill your slot. We would look to recover our costs and lost revenue.

 

We still very much would like you to work as part of the ***** team, so please get back to me at your earliest convenience.

I am now in a situation where I really do not want to work for this company but seem as though I have no choice. Is there a period of time where I can cancel the contract that I signed originally.

 

The contract states the following also ,

 

1. Date of Commencement of Contract

29 October 2012

 

10.1 This Contract will continue from the effective date as defined in clause 1 of this Contract.

 

 

Regards,

JD

[freakyleaky]

What exactly does it say in the contract re cancelling/terminating?

[JayD2011]

The period of notice section is copied below.

 

10. Period of Notice

10.1 This Contract will continue from the effective date as defined in clause 1 of this Contract.

10.2 **** may by written notice summarily and without notice terminate this Contract at any time if

· The Subcontractor breaches any term of the Contract which if capable of remedy shall not have been remedied by the Subcontractor within seven days of receipt by the Subcontractor of written notice specifying the breach and requiring its remedy.

· The Subcontractor refuses or fails within a reasonable time to provide one or more of the services required under this Contract having been instructed by ***** in writing to do so.

· The Subcontractor conducts himself/herself in a manner which in the reasonable opinion of Premier is likely to bring ***** into disrepute by association.

· Any client of ***** for whom the Subcontractor is providing services under this Contract decides for any reason that the Subcontractor is not an acceptable person to provide such services.

In the event that this Contract is terminated under this clause 10.2 the Subcontractor shall be paid by ***** for services provided up to the date of termination but shall not be entitled to any further payment.

10.3 In the event that the Subcontractor terminates this contract other than in accordance with Clause 10.1 or ***** terminates this Contract under Clause

10.2 in circumstances where the Subcontractor can reasonably be said to be the principal cause of the termination the Subcontractor shall reimburse to ***** :

10.3.1 Any lost income of ***** resulting from its consequent inability to supply the Subcontractor to its clients for either the remainder of any fixed term or the period of notice that the Subcontractor should have given under Clause 10.1, including but not limited to:

· the cost of recruiting a replacement trainer together with any recruitment fees;

· the costs incurred by ***** in training the Subcontractor including any training fees paid by **** to a third party, TAP, RIO and Train the Trainer Courses pertinent to National Health Service Training and all daily fees paid to the Subcontractor for days on which they were trained.

10.4 The Subcontractor acknowledges that the sums referred to in Clause 10.3.1 are a genuine pre-estimate of the loss that will be incurred by ***** in the event of the Subcontractor breaching their obligations under this Contract.

10.5 The Subcontractor agrees that ***** may deduct any sums owing to ***** by the Subcontractor under Clause 10.2 from any payments due from Premier to the Subcontractor

[freakyleaky]

I have flagged tis for the rest of the site team to take a look at.

On first glance there is no obvious easy way out but wait until those in the know have taken a look.

[JayD2011]

Appreciated. My main thought on first glance is the fact that the contract comes into effect on the date stated (29th October) therefore I am not bound by this contract and may be able to terminate it. Going to be terrible if I have to work for them. I will be on £100 less per day than their other staff and obviously with the threats made, we are not off to the best of starts with our relationship.

[freakyleaky]

I agree it's not a situation I would relish even discounting the money side of things.

As you have pointed out, You may have the option to turn the contract down before the start date as you can't breech a contract that hasn't started yet, surely?

[JayD6]

It's me posting under another username. My other account is playing up and the password seems to always be incorrect.

 

Anyhow, I have spoken with the company involved. The person who I spoke with is unsure of the legalities of things and therefore could not comment much. He is going to go and speak with one of the directors now who will get back to me. Fairly suprised by this all as they clearly wanted me to work for them before all of this happened. When I spoke with them on Friday I was told they would be coming up with an improved offer, the person on the phone also told me "I understand it is a fairly low rate". It's now too late for them, regardless of the outcome I WILL be going to work for the other company. Hopefully we can come to an agreement that doesn't see a 20 year old have to stand up in court for this.

[JayD6]

I have received a further email from them now stating the following...

 

Good afternoon

Thank you for calling this afternoon. In regards to whether there is a notice period, even though you have not started your contract, this is a six month fixed term contract, you have signed the contract, and you need to work out the length of this contract, there is no notice period on a six month fixed term contract.

[JayD6]

Sorry, have received another email from the company now.

 

****,

 

***** forwarded your email.

 

My perspective on this is clear:

You have signed a six month fixed term contract and are bound by its terms. These terms became effective from the moment you signed the contract. We expect you to honour your contractual obligations.

Under law, we are entitled to pursue you for any loss resulting from a breach of contract.

***** is expecting you to start with ****** on the 29th October. He has spent a lot of time building out this team, and by breaching your contract you will be leaving him short, subject to a loss of revenue, and open to criticism from his clients.

 

I would ask at this time that you reconsider your position, and confirm to me your intentions.

 

I look forward to your reply.

 

*****

Honestly not a clue what to do. I was meant to be starting my new job next week and now I am stuffed! Certainly do not what to work for a company making these sort of threats, but it is looking like I have absolutely no choice.

[Bandit127]

Err, the last time I checked the contract of employment was made in common law and was a simple contract in which you supply your services in return for the conditions in which to do the same and some sort of remuneration.

 

The contract only begins when you turn up for employment and they provide somewhere for you to carry that employment out.

 

No amount of terms or conditions could override that.

 

I would give ACAS a ring for some advice.

[JayD6]

Thanks again for the help.

 

I spoke with ACAS who pretty much said that it's tough, I've signed the contract and I'm now bound by it.

 

It seems completely insane to think that I am 100% bound by this contract. There are some worrying terms within the contract also. See below. I'm guessing my only option from here is to get legal advice, which is going to cost.

 

12. Subcontractor’s Obligations following the termination of this Contract

12.1 The Subcontractor recognises that in entering into this contract ***** is investing significant time, expense and knowhow in the Subcontractor which equips them with the skills required by *****’s clients for the Subcontractor to deliver their services to clients. If following the termination of this Contract the Subcontractor was employed by or contracted with any other organisation providing competitive services to *******, such organisation would gain an unfair competitive advantage. They could offer the Subcontractor’s services to clients of Premier immediately on employing or contracting with the Subcontractor without having first incurred the cost of providing them with training. The Subcontractor therefore agrees that the following restrictions are reasonable and go no further than to protect the legitimate business interests of ******.

12.2 The following restrictions shall apply for six months from the date of termination of the Contract howsoever occurring

12.2.1 The Subcontractor covenants with *(*** that, without the prior written consent of Premier, in connection with the carrying on of any business similar to or in competition with the business of computer training consultancy or sales on their own behalf, or on behalf of any person, firm or Company, he or she will not directly seek to solicit or procure orders from, or do or provide any training services to or with any person, firm or Company, who has, at any time during the twelve months immediately preceding such termination, done business with ****** and is likely to continue to do so, or is a legitimate marketing target of *******, and for whose needs or potential needs the Subcontractor has been trained for by ******* for the purposes of this Contract. In the case of Subcontractors working on ****** Health Projects this would include London NHS Trusts and other organisations within the London NHS Region.

12.2.2 The Subcontractor further covenants that he or she shall not seek to induce any sales staff or other freelance Subcontractor to leave employment or terminate their contract with Premier and/or to accept employment or engagement by the Subcontractor, or any other person, firm or Company in which the Subcontractor shall have a material interest or by whom the Subcontractor is employed or contracted with on any other basis for the purpose of providing services the same as or similar to the services provided by the Subcontractor under this Contract.

12.3. Each of the restrictions set out above in Clauses 12 shall be independent and severable from the other and enforceable accordingly. If any provision shall be unenforceable for any reason but would be enforceable if part of its wording were deleted or amended, it shall apply with such deletions and amendments as may be necessary to make it enforceable.

 

Not good.

[ashmk]

Well for the sake of £800 a week better off do you not think it's worth investing some money in this and seek professional advice.

[Sidewinder]

Agree with ashmk - this needs professional legal advice. This is not a contract of employment, but one for the supply of a service. I fear that you may be bound by the contract despite the fact that it has not yet commenced and would be liable for damages incurred by the other party in having to make alternative arrangements - whether those would be sufficiently bearablel to make the breach worthwhile is another matter.

[EveOwes]

Hi

 

Where is the work located, and what training do you provide? I know it's slightly off topic but I need work and I'm a professional, and I have delivered training courses before - in the Dept of Health. Sorry, just wondered if it was a solution to your problem. And, if not me, then someone else you could sub the work to.

 

eve