Contracting and durations

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gished

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#279700 2-Nov-2020 16:26

If you sign an hourly rate contract for a set duration, say it's for 6 months, and you're told within a few days of starting that the actually duration is now much less, say 3, can an employer do that? This isn't a fixed term engagement.

timmmay

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#2596414 2-Nov-2020 16:29

What does the contract say? Contracts can be verbal, but it's much easier to have things in writing.

gished

276 posts

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#2596417 2-Nov-2020 16:36

It's all written and signed. Start date / end date.

mkissin

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#2596427 2-Nov-2020 16:54

The contract is the contract.

There may be clauses in there that allow them (or you) to vary the terms, so you'd want to check for that.

As always though, it's only as good as your ability to enforce it. If they end up being a pain about it, you may be able to negotiate a partial payout for the remaining time, rather than involving lawyers. Depends on how keen you are and what sort of relationship you want with the other party going forward.

Dynamic

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#2596428 2-Nov-2020 16:57

IANAL.... but my 2c based on my commercial experience.

It's a fixed term engagement and both parties are expected to adhere to it. Are there any early termination clauses that you might have missed?

You might have had two offers on the table.... one for 3 months and one for 6 months, so naturally you are more likely to take the longer engagement. Being told 6 months is now three potentially hurts you financially, and drops you in the job market over a holiday period where it may be hard to find work.

Options include....:

Rolling over and just taking this. You now finish work in January, which may not be ideal time for hunting for a new contract. This may preserve your reputation if you may be well known in your industry, but it may also effectively 'give permission' for this organisation to pull the same stunt with others and expect to get away with it.
Negotiate. I'm sorry, Mr Employer, that the work duration is not what you expected. I'm not an ogre, so I'm happy to negotiate. When the work is finished, you can pay me 50% of the remining value of the contract for the early termination.
Stick to your guns. A contract is a contract.

What would his commercial landlord do if he tried to exit 18 months into a 3 year lease? The commercial landlord would either flatly decline or may say 'you can pay the rent until a replacement tenant is found, and advertising the tenancy etc is at your expense'.

If this is an employment contract, have a look here: https://www.employment.govt.nz/resolving-problems/

If this is a commercial contract for services, you could consider going to the Disputes Tribunal for their ruling. Most likely this would happen after you finish and the relationship has taken a turn for the worst and you feel you have little to lose. $15k maximum. https://disputestribunal.govt.nz/ In my experience, the tribunal often just splits the difference, so go in with your highest number under $15k and if you have stated your case well, be optimistic about getting 50%. Don't be too surprised if you get a settlement offer from the other party a few days before the hearing. If that offer is 50%, take it as a win and run.

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Delphinus

611 posts

Ultimate Geek

#2596635 2-Nov-2020 22:11

Dynamic:

If this is a commercial contract for services, you could consider going to the Disputes Tribunal for their ruling. Most likely this would happen after you finish and the relationship has taken a turn for the worst and you feel you have little to lose. $15k maximum. https://disputestribunal.govt.nz/ In my experience, the tribunal often just splits the difference, so go in with your highest number under $15k and if you have stated your case well, be optimistic about getting 50%. Don't be too surprised if you get a settlement offer from the other party a few days before the hearing. If that offer is 50%, take it as a win and run.

This was increased recently (in the last year or so) and it's $30k maximum now.

xpd

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#2596638 2-Nov-2020 22:22

Contracts will have start/end date - if it finishes earlier, they have to pay out the remainder. However it does come down to whats in the written and signed paperwork.

So read the fine print.

Gavin / xpd / FastRaccoon / Geek of Coastguard New Zealand

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Handle9

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#2596649 2-Nov-2020 22:56

Two things. Talk to them about why they are changing the contract term and why they think they can do this. Don't give them any feedback other than noting what they say and make it clear that you will be taking professional advice and will then give them feedback. After the meeting send them an email with your minutes from the meeting so you have a clear paper trail. Anything they have only said verbally put in writing. Don't be a dick about it but do not give them the impression that you are ok with what is happening.

Go and talk to a lawyer. It will cost you some money but it'll give you your boundary conditions and likely outcomes. You can negotiate from there.

Best of luck!

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Andib

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#2596764 3-Nov-2020 08:56

Check the contract wording but from experience as an IT contractor, companies will often include clauses along the lines of either party can terminate the contract early with 2 weeks notice etc. So them reducing this to 3 months is likely them "giving notice" of early termination.

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gished

276 posts

Ultimate Geek

#2597116 3-Nov-2020 15:17

Thanks for the input.

Yeah there is a statement that they can terminate for whatever reason with 2 weeks notice. Seems like an a**hole thing to do and somewhat negates the whole purpose of having a duration. I negotiated my rate based on the longer duration.

evnafets

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#2597132 3-Nov-2020 15:37

I guess you chalk it up to a learning experience? Hope you didn't take too much of a rate cut.

Wonder if next time you can insert a clause such that if they invoke the right to terminate your contract early, there is a penalty to do so to prevent this sort of thing happening again.

marpada

476 posts

Ultimate Geek

#2597193 3-Nov-2020 18:01

That's why I'm reluctant to sign contracts over 6months as it mainly benefits the employer by fixing your rate. 3,6 or 12 months, both parties can always terminate the contract at short notice.

ANglEAUT

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#2597279 3-Nov-2020 20:34

& please let us know the outcome & what you've learned?

Was a talk with them enough
Did you have to threaten / go to the Disputes Tribunal
Or did you have to get a lawyer involved
What would you do different next time
Could you have seen this coming in any way
Was it people / politics or finances that caused this change

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