man signing papers


When contracting through a limited company, your company should have a contract with your end client. It is best to have a thorough read through of the contract,ensuring that you understand everything and are happy to proceed.

As a contractor, you have no minimum notice period by law, however if you do have notice rights they will be detailed within the contract itself. If there is a termination clause in the contract, this will mean that the client can cancel the contract at any time with notice (usually around 30 days). You won’t be entitled to be paid for the overall remainder of the contract, however you will have a right to payment covering the notice period.

As you are not classed as an employee of the client, there is no right to claim unfair dismissal upon the cancellation of your contract. However, you are able to add interest onto outstanding payments under the Late Payment Regulations.

Depending on whether the cancellation of the contract has breached the terms of the agreement, you may be able to sue for damages. As this is a complicated area, it is important that you get the right professional advice to ensure a justifiable claim is made. There would be legal fees involved, so it is vital that these costs do not outweigh the claim for you are making.

For more information on how to secure a contract, read morehere. Alternatively, give our New Business Team a call today on0330 024 0406.

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