IT Contract termination clause ?

[Barty]

Hi

In a IT development contract, should there be a termination clause for both parties.

I have recieved a contract for 3 months, there is a termination clause giving 1 months notice by the company, should I as the contractor also have such a clause in the contract.

First contract, so not sure whats normal.

TIA
B.

 

[Bob_tg]

The contract as it currently stands is weigthed in favour of the company. They have the right to terminate before the 3 months. You don't.

It's a matter of agreement between the parties, so you can change it if they agree.

It might not be too much of a big deal for a one-off 3-month contract. However, be wary of the precedent.... they may offer you a 12-month contract at the end, with the same terms.

If you're not happy, and they won't change the terms, then don't sign it.

 

[podowd]

we provide accountancy services to IT contractors so we see literally hundreds of contracts throughout the year, the standard termination clause that we see would usually allow for either party to give notice, which gives you the same rights as them. There's no automatic entitlement, as it's a commercial contract between two parties it's up to you to agree the terms before signing.

It's worth mentioning it to them, if they really want you I'm sure they'll amend the contract, although do bear in mind that as it's only a three month contract it's probably not worth getting into lengthy negotiations, particularly over the termination clause as it may give them the impression that your priority is how quickly you can get out of the contract rather than doing the work!!

Rgds

podowd
www.prima.ie

 

[ang1170]

It would be normal (from what I've seen, having been on both sides of such agreements) to have equal termination (without cause) rights: generally one month's notice.

By the way, I've also seen three month contract (fixed term), with automatic renewal at the end for one month at a time (i.e. it renews automatically for an additional one month at the end of each month, unless either party doen't want to renew).

If it's something that concerns you, I wouldn't think twice about bringing it (or any other unbalanced clause) up: it's not unreasonable. It's entirely up to you how hard you push for it to be changed, though.

Note: termination with cause (e.g. serious misconduct and the like) is completely different - don't question that!

 

[gearoid]

I was in this exact situation. One very large Dublin agency/consultancy I know of always puts this in their contracts. It put me off them completely. They also held back on giving me the contract until I'd already started. I told them on no account was I signing an unequal deal. They relented. It meant I was free to give a month's notice and go to a much better, longer contract. Don't let them away with it. You're out for yourself now so don't take this. Gearoid.