self employed, contract termination

welshberk

I have recently found my contract of services to a company who I had worked for recently. It is not titled "contract", but within it, it states all the facts and figures that I believe is making up a "contract".
It is dated 1st July 2013, (the first day of my contract with the company) and on 1st January 2014, I was told to have a few days off and return on 6th January. I had no communication at all with the company during those few days off and then when reporting for duty on January 6th, I was told that my services were no longer required. I did not work between the 2nd and the 6th of January, as i was expected to carry on as usual from the 6th of January as a rolling contract.
Points within the letter are as follows:

1. Asks for my commitment for the period of six months (I did)
2. They will pay me for a minimum of 40 hours per week (they did)
3. They will provide me with one month's notice of termination of this contract. (They have not)
4.This contract will be reviewed after 5 months with a view of extending. (It was not reviewed)

My commitments which they asked for, were as follows:

5. I work a minimum of 40 hours per week ( I did)
6. I commit to working for the company over the xmas/new year period from Dec 22nd 2013 to January 5th 2014 (I did)
7. I provide one month's notice to terminate my contract. ( I had no intentions of leaving the company)


Am I right, that the company owes me one months money, based on 40 hours per week, total 160 hours?


I never had a review at 5 months, so no idea on whether the future was looking bad or good.


Have I got a case?


I have not asked the company yet, so seeking advice whether I have a good case.


all advice appreciated.

pleasedelete

How did you invoice them? have you invoiced them for the money that you think is owing and if so what was the response?

Undervalued

welshberk wrote: »

Have I got a case?

Based on what you have posted then yes.

A contract doesn't have to have the word "contract" written on it. In fact a contract doesn't even have to be in writing (although it is obviously far harder to prove what was agreed if it was only verbal).

Assuming you don't want to continue working for them now, I would simply invoice them for the notice period as agreed in your contract.

In all probability they will pay and that will be then end of the matter. However if they don't then you will need to send a "letter before action" giving them a further short but reasonable time to pay failing which you will commence legal action.

As this is a "contract for services" you have no recourse to an employment tribunal so you will have to use the small claims court. However, I suspect based on the terms you have outlined, it could well be argued that you were in fact an employee and they were therefore "employing" you unlawfully. HMRC would certainly be interested and this may concentrate the firms mind. You could POSSIBLY get it to an ET on this basis but as there are now fees to pay there is no advantage.

However, if you want further work from the firm then you need to resolve this amicably by negotiation!

agrinnall

I recall a similar thread a few months ago in which it was argued that while the contract did entitle the contractor to payment in lieu of notice, the contractor had a duty to minimise their loss, so if it came to court would have to be able to show that they had looked for work but were unable to get any within the month. I'm not sure whether that one ever came to a conclusion, and I suspect in this case that if the OP invoices the client they may well pay it, although as Undervalued points out that could be pyrrhic victory if there is any hope of working for that client again.

justanopinion

It sounds like a completely bodged agreement - how big is the company?

Am on my phone, but google and look at how HMRC define a contractor. The main point that differentiate is that a service contractor can send another person to cover work. They should also be able to determine how they work and without direction.

This does sound more like an employment contract to be honest. Appears they are trying to keep it off payroll. It's very common though.

Undervalued

justanopinion wrote: »

It sounds like a completely bodged agreement - how big is the company?

Am on my phone, but google and look at how HMRC define a contractor. The main point that differentiate is that a service contractor can send another person to cover work. They should also be able to determine how they work and without direction.

This does sound more like an employment contract to be honest. Appears they are trying to keep it off payroll. It's very common though.

Quite possibly but that is not really the OP's problem. A clear contract exists and it seems the firm may be failing to honour it.

If the firm gets difficult about paying then he may well be able to use the HMRC / employment issues as an "incentive" to concentrate their minds!

Whilst HMRC may well go after the firm for the PAYE tax that should have been deducted if he was an employee that, in itself, doesn't get his month's notice pay.

Much better would be to sort it out amicably and keep the possibility of further work open.

welshberk

thanks to those who have replied. I have emailed a letter to the payroll as a first step. I have today sent an invoice to the company asking for monies equal to one month's notice.
I was paid by a self billing system where they would automatically send me a self billing invoice. No problem ever as most of the agencies I work through use the same method.
The company is not massive,. They have some 150 self employed people working for them at all different skill levels. I asked the big boss some time ago for a copy of my contract as I was unable to find it. By chance, I found it recently.
I will update you what happens in all communications and if I'm successful in winning.