To feel a bit miffed that I've lost my job through no fault of my own?

[Movinghouseatlast]

I'm self employed in the professional services industry. I had been contracted through another company(a) to provide a service to a client (b) until the end of March next year. I invoice company a who invoice client b for my services. As such I am self employed and have no employment rights or contract. I accept this, have worked in this way for over 20 years and have never had a problem with it.

So the client has pulled the contract due to poor performance of 2 of my colleagues. A director observed them.at work and had a whole list of complaints about them. I wasn't in that day. The next day we are told, with just a weeks notice that that is it, we all are dismissed because the client is severing the contract.

Although I'm self employed, I had been put under a lot of pressure to commit until March next year by company a. I had booked hotels and train tickets in advance, pressured to save money for the client.

I'm in shock really as I have had my income just cut off as of next week.

I actually don't believe the complaints about my colleagues who are consummate professionals. It seems like an excuse. All our service level agreements have been exceeded for example. They have severed the contract on the grounds that the my 2 colleagues were shit at their jobs and made sexist remarks- so they have been able to do it without notice.

I will have no income now. I just wonder whether the director who made the decision should have considered this before making making 9 people unemployed through absolutely no fault of their own?

Sorry to hear that, it’s tough on you but I wouldn’t waste any time thinking about the Director who made that decision- unfortunately I doubt that they will care.
Firms tend to employ contractors so they can have a short term flexible workforce and not commit long term on salaries.

That's rough, and seems very unfair but unfortunately it does happen. If they put pressure on you to cut costs and book in advance could you claim for what you have already paid for advance travel and hotels - if you have thisin writing it may be work taking it up so you aren't out of pocket, even though you have lost your job. Good luck in the search for the next one OP.

Do you genuinely believe you were self employed? You're using the language of an employed person. "Lost my job", "been dismissed". Colleagues, even. And you don't have any other clients.

Sorry aboit that OP. Are you saying you've lost money on hotels and tickets because you won't be reimbursed?

This is the shitness of this self employed culture that has developed in service work. All that employment law that is there to combat the huge asymmetry in the contract between employee and employer is nicely sidestepped by creating a company to company contract. I would try and look at updating your T&C's for the next job.

Also, you could have a case that you were actually and employee if you found a lawyer willing to take it on.

You're not unemployed.

Unfortunately as a contractor you've no security. I'd take it as a learning experience and not pre book what you may not need.

I have seen a whole contract cancelled because of poor behaviour by one person, so it can and does happen, but this is generally why contractors charge what they do because of lack of security and no guarantee of other work.

As somebody said upthread, I would question whether you were genuinely self employed.

Did you only work for this client?

I’m with @leghairdontcare. I’m self-employed and I have a range of clients. Sometimes one goes elsewhere. They can’t break a contract with me once it’s been agreed, not unless they want to potentially end up in court.

Just a caveat on the employment/ self employment issue. If you did choose to pursue this on the grounds that you were an employee, and you were successful in such a claim, you would need to adjust your tax position for the period of employment. You'd need to weigh up whether the benefit gained from a claim would outweigh the financial benefits of self employment.

Hi, I do think it’s a bit rubbish and I do feel sorry for you.

But... as a contractor (I assume) you will be getting paid a much better day rate than any in house employee could hope to earn.

You may (or may not) realize this, but many permies do resent contract staff on what they feel are on inflated day rates

That's the life you sign up for when you take to contracting unfortunately (along with the lucrative rates and tax avoidance opportunities). Look on the bright side, it's better than being terminated for something that was your fault.

it's better than being terminated for something that was your fault.

That's a good angle to take!

I am certainly self employed. I have never had so many days booked over such a long period before though. So at the moment they are my only client as I didn't have time to work with anyone else.

The person saying I'm using the wrong language- oooh sorry but there isn't a separate language for self employment! I worked alongside my colleagues, who are also self employed. I currently have no paid work, so unemployed at the moment though obviously can't claim any benefits although I have no way of paying the mortgage after I get paid next!

I just think, as is shown by some of the responses here that there is no empathy for self employed people in the world of work. We have no employment rights at all.

Oh, and I don't avoid tax.

I would argue that there is a huge difference in language when discussing self employment vs employment. And lots of employers try to tell people they are self-employed and therefore have no rights when they do not, in fact, meet the legal test of self employment.

As you are satisfied that you are self-employed, then i'm sorry you took a risk in putting all your eggs in one basket and I hope you find some new clients soon.

You're not unemployed, you are self employed in between contracts

What does your contract with your 'agent' say about costs you incur in advance if your contract is cancelled. Also what does it say in your contract with them about a 3rd party cancelling the contract?

It's tough, but you need to brush yourself down and get out there an find new customers straight away.

And no the director shouldn't have considered everyone else, you should be angry at your 'colleagues' who screwed it up for you, not him

You don't sound like you were self employed in your last role.
I'm self employed and don't use your language, if I lose work for something not my fault I'm not suddenly unemployed I'm continuing with other work.

You’re self employed with one client, you have been for a while now and you haven’t put enough away to cover even one month’s mortgage?

It’s a shit position to be in, I’m sorry- learn from this though. As a freelancer/contractor you command a higher day rate for just this sort of reaso .

Well, I wouldn't dwell on the Self Employed status too much, plenty of people who were on the cards and given the heave-ho. Because you are self-motivated, your actually in a strong position. First of all find out if the real reason you lost the contract was poor provision of work. And if another company holds the contract, then contact them with a deal. When something like this happens, it is a good time to review your assets, what are your skills, can I make this problem into a success. You need to act fast, contact the job-centre and tell them your plight, contact anyone involved with your business. Good luck

It sounds to me, and I'm very tangentally connected to this, but a friend spent an hour banging on last week so it's fresh in my mind, as if the client is running very scared of the imminent enforcement of the IR35 rules, which would make companies pay pension/holiday for their self-employed contractors if they are working solely for one company in a single location and providing all the "kit". According to said friend, this is about to rip a large hole in "self-employed" consulting/contracting.

OP I'm not an expert

But you say you're employed by one company to provide services to another company

You booked travel in advance to save a company money.

Legally, might there be some protection for you? Employment rights are shit, I agree, hence looking carefully at the language in case there is anything you can do.

It appears some posters are confused with the self-employed bit, with that of a sole trader. The type of self-employed OP is talking about is where a company takes you on permanently on a self-employed basis, in some cases they even sort out the tax on your behalf, but can just say goodbye and off you go. That is different to a sole-trader who keeps tax records, bank statements, and has a clientele, that if one moves to Newzealand, there is still plenty more to cover you. Maybe OP could contact a Recruiting Agency.

This is a hard lesson in do not put all your eggs i one basket s a self employed contractor.

You should never have more than 80% of your business with any one client and I would actually go as far as to say maximum 60% and I would be edgy if that was the situation (yes we are self employed/contractors).

My view in this circumstance is to get out there and start looking for something to fill the gaps. I might even go directly to the end client firm in the short term (I mean I wouldn't really trust them to be honest but to fill the short term space....) Get on the phone and start building - consider the bookings lost money unless you can utilise for something else, move travel dates or change arrangements of sell them on e.g. hotel bookings

Hard lesson.