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?

I do not want to detract from the main topic of the thread, or from OP's very difficult position, but I am also 'contracted' as a 'consultant' and my status is 'self-employed/freelance' and I pay self assessed taxes as such.

In another tole, I am classed as casual and the agreement states explicitly that the agreement is not a contract of employment.

With respect to an agency I work for, I am classed as self employed and pay the agency commission for finding me clients.

So, there are quite a lot of very insecure and possibly dubious employment agreements which use a variety of terminology to create a situation in which the organisation which supplies the work can simply cease supplying it giving no reason and no period of notice.

role not tole

It's just the way it goes, OP.

I work in professional services BUT as a permanent employee of a company (company A using your description). It means I'm paid a salary on PAYE with car allowance, good pension, holiday pay, health, etc, etc.

The client I'm currently working for pays £1,600 per day for me for a 100 day contract, but this is discounted by 15% due to the number of days. So it's £136k for the total contract.

There are performance clauses in the contract but if they're invoked it pretty much means the rate for the work completed so far reverts to 100%, which tends to encourage clients to see projects through, usually, unless something is drastically wrong.

The crux of it is that I'll complete the 100 days of work over 6 months, taking into account holidays etc, and my salary over 6 months isn't much more than half of the £136k my employer will invoice. So even if I don't work for the rest of the year the company still break even as I'll have already billed a full year's salary.

I could choose to go it alone and bill the client myself - a former colleague does exactly that and their day rate is no different to what we bill - ie £1600/day give or take discounts. They're doing it that way because they want to take several months off to travel each year.

They take the risk of not working for a long period, plus no sick pay, car, bonus, health, etc, etc.

You can't have it both ways.

By the way, I also think one of the companies - either A or B - has got IR35 in mind here.

I've been advised by a lawyer who specialise in this area that even though my employer is completely out of the U.K. (no UK business exists at all) I would be considered a 'disguised employee' if I tried to invoice my employer as a contractor rather than work as an employee. I'd be liable for both employer and employee's NI, etc. They just don't care that it's a foreign company - if you have one source of income you're likely to be caught up by IR35 regs, regardless.

I do feel for you regarding having no income very soon, and no way to pay the mortgage, which is worrying, but I'm very surprised you're in that position as a contractor. When I've worked in that way in the past, I've assumed at least 3-months with zero income is very, very likely to hit at some point.

I'm puzzled by OP's objections. The whole idea of being SE is this risk, plus the pro's that go with it.
Versus the choice of being an employee.

The colleagues are affiliated with me in that we were all consultants working for the client via another company. We were all delivering the same service. The company who brought us in had the contract severed due to the behaviour of these 2 people.

I have never, in 20 years, seen this happen before so from my point of view it is incredibly unusual. I have seen people pulled off jobs for bad behaviour but never a whole project pulled in this way.

Why I am miffed is because the client, I think, has used this as an excuse. They would not have been able to sever the contract for poor performance as all our SLR's have been exceeded during the past 6 months.

I agree that my role is not strictly self employed. I actually tried to send someone in my stead and got a load of grief about it. But due to having no employment rights I can't complain about anything at all. I can even be bullied and harrassed and there is no legal redress!

What I do is incredibly specialised. No company anywhere would have enough work for someone like me to even have a part time role.

There are some judgemental cunts who post on mumsnet aren't there? Not everyone can manage to have huge amounts of savings at all times to cover every eventuality.

As consultants, we never paid upfront for flights or trains because it is common that whole contracts get terminated or consultants replaced at short notice. Hotels - we pre booked months in advance with those that provided 24 hours cancellation notice.

So Client B severed the contract with Company A due to the behaviour of 2 subcontractors they used?

I'd contact Client B directly and ask to be considered as a subcontractor for the work (which presumably still needs doing), I'd point out that you were doing the work successfully while subcontracted to company B. Or foind out who they now subcontract the work to and see if you can get a contract from them

You sound like you're not clear about your contract terms so water tight your agreement next time, specially around termination and expenses.

If you paid for your train tickets already, you should expense those within two weeks or so. Not wait until travel date I suppose. I don't see how all of a sudden you're in loss with your bookings made?

In reply to your last post OP, contract termination is not considered as an 'every eventuality' for a self employed contractor. It is THE eventuality that is of first and foremost importance for a contractor/consultant!

I am certainly self employed.

*I agree that my role is not strictly self employed."

Why I am miffed is because the client, I think, has used this as an excuse.

I think you're right about that. But self-employment is always risky, even more so when you sub-contract (company A or company B could pull the plug, so twice as risky). If that's too risky for you, you need to join the PAYE wage slaves.

Agree 100% with earphones last post. Losing the assignment is the one thing any self employed person should plan for

What I meant leghair was that although I am definitely self employed, I agree that in many respects the company who wins the business and then employs me doesn't treat me that way, e.g. wont allow me to send someone else in my stead. However, it is impossible for me to demand any of this as people just won't offer me work.

I don't have, and never have had, any sort of contract, so impossible to 'watertight' anything. No-one who does what I do has a contract. We are employed on a daily rate. However, we are expected to pay upfront for flights and hotels. On this particular contract I was told to get the cheapest I could and the finance director checked you had the cheapest deal.

As for not having 3 months income put away. As I said, no-one understands everyone's circumstances. However, to stop people making the assumption that I'm stupid, 2 weeks after we moved into our new house our central heating system blew up. A new boiler cost £6k and the radiators etc cost £4k. And yes we did have a specialist survey. He said that the fault could have happened after he did the survey. Our solicitor says we don't have a leg to stand on.

I still think I have been treated like shit. But it seems lots of people think not!

You probably feel unheard but with current economy I believe it is better to know the contract/policies upfront. You might have a day rate but usually there is a contract where daily rate is specified with termination terms & conditions. Anyways, you need to file expenses immediately. So even if you pay upfront, you get reimbursed in the next pay/invoice cycle.

If they don't agree with this then you don't book non refundable services in advance.

I know it's a pain with unexpected costs and overwhelming with your contract ending at the same time. Hope you find another one soon

Not really sure why you're moaning on here and then moaning that the responses aren't what you wanted to hear

Moaning? You wouldn't moan if you had lost a huge amount of money when you personally hadn't done anything wrong? Really?

Your AIBU was whether a Director should consider the desire for fixed income of contractors working for a third party, over and above the needs of the company he works for. Majority said no, he shouldn't, what happened falls under the category of "unfortunate events that can happen on occasion while contracting". I don't understand what you think the job of a Director should be, if not to look for the best outcome for the company he works for?

Its not that people dont think you have been treated like shit, its that a lot of people think you take those kinds of contract at your own risk. You agreed the terms, you agreed to work without any security including a written contract.
You don't get to do that and also complain at the inevitable outcome.

If everyone refused those kinds of contract they'd have to actually employ someone to do the job.

You wouldn't moan if you had lost a huge amount of money when you personally hadn't done anything wrong?

You haven’t ‘lost’ the money, you never had it in the first place.

Get busy networking and marketing, plug the gap as best you can. Projects falling through is the perpetual risk, and the daily reality, of self employment.