'I was working on a contract where I had been introduced to the Client by the agency, and then contracted direct with the Client - the agency invoiced the Client separately for its fee. The contract was extended - then the Client gave me 1 month's notice, and 2 weeks later told me to leave, making accusations about the quality of my work, and saying that it wasn't going to pay me for any of the notice period.'
As we all know, it's unusual in this industry for a Contractor to be introduced by an agency to a Client, and then contract direct - but it does happen from time to time, and there's no reason why things shouldn't also be done this way.
I've read your contract; it's for a fixed 9 month period, and the only provisions relating to termination are one term that says that 'in the event of gross misconduct or any breach of the confidentiality agreement this contract may be terminated forthwith', and another which says 'either party may terminate this contract by giving one month's written notice'. It's also a legal principle that the innocent party may terminate a contract if the other party is in breach of a condition (ie an essential term) of the contract - even if the contract itself doesn't expressly say so.
It is clear to me that when they gave you one month's notice in writing, they were acting within their contractual rights. They were perfectly entitled to do so, without having to justify their decision, or come up with reasons for it.
What happened two weeks later on the other hand is a different matter; there was a conversation, in which it was baldly stated to you that your work was 'not up to scratch' (which in any case you deny, and say your colleagues can prove), and you were told to go home that day and not to return to work for the remainder of your notice period.
A contract is still running its course and being performed during a notice period - each party remains obliged to perform its contractual obligations. And during that notice period, if one party is in breach of a condition of the contract, the other remains entitled to terminate immediately for breach.
We don't know what they meant when they claimed your work was not 'up to scratch', because they did not tell you. But we do know that you had by that time been working there for 9 months - your contract had already been extended once. You were not given any particulars of this claim, and no complaints had been made about the quality of your work before. Neither you nor your colleagues knew of any reason for complaint about your work. To me, this sounds very much like what I call 'management by accountants' - as in 'how can we cut costs? - I know, we can make up a complaint, terminate this guy's contract, and get out of paying him - and the agent!'. Short-sighted and inept, some might say.
Someone who claims they are entitled to terminate a contract as a result of the other party's breach has the burden of proving that what they claim is true. Looked at against the whole background, and taking into account that they have given no details, their actions don't do wonders for their credibility. I doubt they could prove that you were sufficiently in breach of an essential term of the contract to justify them in terminating without notice.
It therefore follows that by terminating without notice at that point, they were in breach of contract. You are entitled to be paid for the first two weeks of the notice period (during which you worked) by way of money due under the contract, and for the remainder of the month (when you were not allowed to work) by way of damages for breach of contract. You'd have to give credit against the damages part for any money you were able to earn elsewhere during that period, by way of mitigation. You ought to be prepared to show that you had taken steps to try and find another position straightaway, but I doubt you'd be criticised if it took you longer than 2.5 weeks to do so.
I advised you to write to them, summarising the legal position, and saying that you would start County Court proceedings against them if they failed to pay by a deadline date. You did that, and when the deadline passed, you sent the summons to the Court … the very next day, the Client's cheque for the lot dropped onto your mat!
17th April 1998
I'd really appreciate your feedback on this FAQ - so mail me and tell me what you think of it, if it's been useful to you, or let me know of any specific problem you have where I may be able to help.
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