Laid off before Christmas (Contractor not employee)

d39833 on 26/11/2017 - 16:21

Hi,

I was given a letter saying that my contract would terminated immediately. I am a geologist in the oil and gas field.
Since my contract states that either party needs to give the other 4 weeks notice, my employer said that they would pay me for 4 weeks out of which I need to work for 1 week. My questions are:

  1. The 4 weeks is supposed to be a time period for me to find work. Can they ask me to work for 1 out of those 4 weeks as then it will only be three weeks?

  2. Since its close to Christmas and no one will be hiring until end of Jan, is it fair that they terminate my contract suddenly and only give me 4 weeks notice (1 of which I need to work)? Can I ask them to compensate me until end of Jan?

  3. They are hiring some one else to replace me but the position title will be different. Is that alright?

Looking for your inputs and suggestions?

Education & Work

Comments

  • Nugs on 26/11/2017 - 16:26
    +2

    do you have a copy of your contract?

    • d39833 on 26/11/2017 - 18:44

      Yes

  • shreddo on 26/11/2017 - 16:28
    +1

    If you have worked for them for over 6 months you may be an employee not a contractor in eyes of fairwork act. You may be able to argue an unfair dismissal or at least claim superannuation back pay. I have no formal training in the law just work in financal field. Worth a call to fair work if you feel unfairly done by.

    • d39833 on 26/11/2017 - 18:45

      Its been 8 months

      • HighAndDry on 26/11/2017 - 19:04

        Doesn't hurt to explore your options but take shreddo's comment with a large grain of salt - and don't get your hopes up.

    • JimmyF on 26/11/2017 - 21:00
      +3

      If you have worked for them for over 6 months you may be an employee not a contractor in eyes of fairwork act.

      Yeah nah…..

      Contractor mate, No unfair dismissal here. It clearly states either party can end the agreement for any reason with 4 weeks notice. The guys job/skillset is no longer required. Legally allowed to end it.

    • Ughhh on 26/11/2017 - 17:19
      +7

      I'm not a lawyer.

      Thats all anyone needs to know.

    • [Deactivated] on 26/11/2017 - 19:13
      +3

      You're wrong on all counts, except for the part where you're not a lawyer… You nailed that one, champ.

    • whooah1979 on 26/11/2017 - 19:52
      -3

      Australians continue to vote the Liberal Party

      is that why there is more red than blue on this image?
      https://upload.wikimedia.org/wikipedia/en/timeline/1d3a1bc09…

  • cloudy on 26/11/2017 - 16:44
    +25
    1. 4 weeks notice means they will tell you now, and you get paid for the next 4 weeks. They can require you to work till the last day of those 4 weeks, or just tell you have some cash and go home early.

    Consider yourself lucky u dont have to work the whole 4 weeks.

    1. Being close to Xmas has nothing to do with your contract, unless otherwise stated. Doubtful.

    2. If you are a contractor it matters little.

  • DaDuke2310 on 26/11/2017 - 16:44
    +19

    Long term contractor here (IT industry but I believe relevant)

    1. Yes they can, in fact they can ask you to work all 4 weeks, they are actually being nice only asking you to work 1 week of the 4 weeks notice period. As long as they pay you in lieu of any time not required to work they have probably met the terms of the contract, you would need to check your contract but most have a pay in lieu provision.

    2. Unless your contract has anything specifically covering this time of year (very unlikely) then its tough on you afraid.

    3. Perfectly acceptable for a contract position.

    Sounds to me that you may not have fully understood that a contract position has really limited rights compared to an employee. Unless your contract has any specific conditions covering any of your questions then they are probably well within the terms. If you are really bothered then seek out a lawyer and try to get an assessment in a free initial consultation, but I really wouldn't be expecting much.

    C.

  • bluesky on 26/11/2017 - 16:48
    +9

    So sorry to hear this happened to you, and so close to Christmas.

    My understanding is that the notice period usually means you continue to work during the notice period, and you get paid for it. If they only require you to work 1 week, and you get paid the rest of the 3 weeks without having to work, that is a bonus. They can, if they choose, ask you to work the entire 4 weeks. Of course, go back to your contract, in case there are special provisions and clauses.

    Edit: seems like commenters above who submitted while I was replying also have the same understanding. Your case, if you wish to contest it, could be weak. Better to accept this, and ask for a good reference, which they will most likely be prepared to give.

  • bobbified on 26/11/2017 - 17:12
    +6

    This is one of the downsides to being a contractor. The rate of pay is usually much higher and is usually enough to compensate for the lack of the job security.

    I hire and terminate contractors all the time and it's done within the terms of the signed agreement.

    As others have said above, be happy that you only have to work one out of the four weeks and not the whole four weeks.

    The contractors that work at my place always work until the last day, except where the contract is terminated by "mutual agreement", then we'd pay out the notice period. However, "mutual agreement" is usually where a contractor is asked to leave as a result of (lack of) performance.

    Did they tell you why they're ending your contract?

    • d39833 on 27/11/2017 - 13:45

      I was only offered a contract because of the current down turn in the oil and gas industry.
      My pay is much lower than what I used to get when I graduated 5 years ago.

      If I was given the option I would opt for the employee route.

      The reason they mentioned is that there is not enough work.
      How ever they have gotten someone else in to do the same work.

      I was very very good at my work and all my colleges and boss is upset over this decision.
      Looks like this this new person was pushed in by higher management.

      • bobbified on 27/11/2017 - 14:01
        +1

        The reason they mentioned is that there is not enough work. How ever they have gotten someone else in to do the same work.

        The "not enough work" sounds like an excuse if they're hiring someone to replace you. But fact is, as a contractor, they don't even need to give you a reason for termination.

        If it's the case that they're getting someone else, then it's possible that they're paying your replacement a much much lower rate/salary.. Probably "lower" to the point where they assume there's no way you'd accept that kind of a paycut.

        Were you hired by the company as a contractor through an agency? Sometimes companies also don't hire an existing contractor due to arrangements with an agency where they'll have to pay a large fee to convert you to a full time employee.

        • d39833 on 27/11/2017 - 16:13

          I was hired directly. They are paying the new person the same rate which leads me to believe that she had a good contact higher up.

  • Randxyz123 on 26/11/2017 - 17:39
    +2

    Sorry this has happened. Sucks at this time of the year…

    Luckily contractors are paid well and most understand the lack of job security so they have a savings account for emergencies (hopefully you do as well)

    I'd Start looking for a new job that will start in January. Hopefully your savings account can take a decent hit and you'll be back on track.

    What reason did they give you for terminating your employment? Performance? Company issues? Restructure?

    If at all possible keep up a good relationship with your boss so you can get a reference from them.

    • d39833 on 27/11/2017 - 13:48

      I was only offered a contract because of the current down turn in the oil and gas industry.
      My pay is much lower than what I used to get when I graduated 5 years ago.

      If I was given the option I would opt for the employee route.

      The reason they mentioned is that there is not enough work.
      How ever they have gotten someone else in to do the same work.

      I was very very good at my work and all my colleges and boss is upset over this decision.
      Looks like this this new person was pushed in by higher management.

      • Randxyz123 on 27/11/2017 - 14:24
        +2

        Well there’s one good thing. I’m sure your boss will give you a fantastic recommendation.

        As for now, dust yourself off , update your linkedin profile , resume etc and start applying.

        As others Have said getting lawyers involved etc will take longer and cost more.

        January is often a busy time for contractors so if they can’t do a interview in December , book in for January.

        • d39833 on 27/11/2017 - 16:14

          Yes, only way is way forward.

  • HighAndDry on 26/11/2017 - 19:02
    +3

    1. You misunderstand. They have to give you 4 weeks' notice - nothing says you don't have to work those 4 weeks. As it is, you're getting 3 weeks of pay for nothing, count yourself lucky.

    2. Irrelevant.

    3. Irrelevant.

  • whooah1979 on 26/11/2017 - 20:00
    +3

    work one week. get paid for four weeks. take a xmas holiday and spend the free money. start fresh in 2018.

    it sounds like merry xmas.

  • garetz on 26/11/2017 - 20:26
    +2

    1. They can actually force you to work 4 weeks.

    2. Yes it is fair, no you cannot ask for compensation.

    3. You have no control over this or any reason to worry about it.

  • Donaldhump on 26/11/2017 - 20:47
    +3

    4 weeks is 4 weeks, you are complaining you have to work one of these, they have the right to make you work all 4. you are on a contract getting paid a lot more than a permanent, you should be putting the difference aside to cover this,

    I think your gripes are insane, plenty of permanents get laid off at Xmas.

  • PVA on 26/11/2017 - 20:56

    Just before Christmas is a very common thing to get rid of staff. Seems to be written in some crap how to be a manager guide.
    It sucks.

    • rompastompa on 27/11/2017 - 10:33
      +1

      One of the main reasons is due to the amount of public holidays. Could cost the business a grand or two less if you don't have to pay out public holidays.

      Most people (specifically managers) will take a couple of weeks off over Christmas. You want the dirty end of employment done and dusted, so you can enjoy a holiday not having to worry about the employees that are a possible issue (For employees that are let go due to lack of performance, untrusted when the manager is holiday, etc).

      I guess my point is that it is crap if you're on that side, but timing makes sense.

      OP - Don't take it emotionally. There could be many reasons why your contract ended. Don't look for revenge (after compensation, etc). They're doing the right thing by giving you a week to sort yourself out, and then 3 weeks of paid holiday.

      • d39833 on 27/11/2017 - 13:50
        +1

        I have a good relation here. Will not compromise it in any way

  • JimmyF on 26/11/2017 - 20:58
    +3

    The 4 weeks is supposed to be a time period for me to find work. Can they ask me to work for 1 out of those 4 weeks as then it will only be three weeks?

    NO! That 4 weeks is a NOTICE PERIOD that your contract in ending early. You can and often have to work the remaining 4 weeks. In your case, you have to work 1 and get 3 weeks paid leave. Fulfilling the notice period.

    Since its close to Christmas and no one will be hiring until end of Jan, is it fair that they terminate my contract suddenly and only give me 4 weeks notice (1 of which I need to work)? Can I ask them to compensate me until end of Jan?

    hahahaha again no. All they have to give you in 4 weeks paid notice, regardless of the time of the year.

    They are hiring some one else to replace me but the position title will be different. Is that alright?

    You're a contractor, its one of the perks for the company. Clearly, your skillset wasn't working out for them, so they are replacing you with someone else.

    No offence, but you seem clueless at how contracts work and should know the answers to these questions already if you do contracting work or at least READ your contract, its all spelled out in it.

    • d39833 on 27/11/2017 - 16:15

      Its my first time doing contract work. That was the only option available to me.

      • JimmyF on 27/11/2017 - 20:58
        +1

        Ok, welcome to contracting…. Please read your contract, it has lots of this info in it.

        It has pros and cons sadly. This is one of the cons.

      • HighAndDry on 28/11/2017 - 11:37

        Others have mentioned this already: But contracting generally pays you better than an equivalent employee position would (yes, even if the pay is shit, an employed position would get less). Rough rule of thumb is I think to put aside approximately 10-20% of your pay for super, exigencies (like this) and (extra) savings (since you don't get paid leave, etc).

  • Thenarrator on 26/11/2017 - 21:01
    +1

    you heard from everyone. u gotta work. but i mean nothings stopping you doing what u gotta do during that working week, i.e searchin for new job or whatever pleases you coz whats the worse that can happen? they already terminated you. Its actually worse for them coz they risk you stealing all their sensitive information etc

    • [Deactivated] on 27/11/2017 - 10:13
      +1

      You can still be terminated for misconduct during a notice period and you will forfeit the remainder of the notice payment.

      On your third point, there is a slight possibility of recourse. However, you would need a lawyer to run an argument under contract law and there is absolutely no guarantee of it being successful. It is not worth your while.

      What is happening to you is a regular occurrence under a Contract for Services. I suggest that before you enter into any other contracts, you completely understand the legal rights of both parties. There is plenty of information on the 'net nowadays.

  • spal on 26/11/2017 - 23:02
    +1

    May I digress from your questions and suggest, if you can try and find out the true reason for your contract termination. You may find that your hourly rates could be higher and the employer is making a commercial decision to pay less for your services. Then, if they like you and value your services, you may be able to renegotiate your contract. This would buy you time to look for better opportunities in the next year. Just a suggestion, it may work for you in the interim. If that happens then you may have to forego your notice/termination payments.

    • rompastompa on 27/11/2017 - 10:42

      That definitely is a possibility. Instead of getting paid 'less', you could work 4 days a week which will cost the business less. You might even be able to negotiate an hourly pay rise, but less per annum.

      • d39833 on 27/11/2017 - 13:51

        I'll look into this

  • Dr Phil on 27/11/2017 - 07:49
    +2

    Dear OP. 4 weeks notice is just that. Like if you gave them 4 weeks notice. You are expected to work for the entire 4 weeks. Your employer is being very generous

  • Quantumcat on 27/11/2017 - 08:46
    +3

    As a contractor you should always have six months' living expenses saved. You get paid higher than a regular employee for a reason. Good luck with the job search in January!!

    • d39833 on 27/11/2017 - 13:52

      As I don't have a mortgage and spend very less money is not an issue.
      I don't want to dig into the house deposit that I have saved.

      • Quantumcat on 27/11/2017 - 14:03
        +1

        The six months' living expenses is for exactly this situation. You wouldn't want to be buying a house without extra savings on top of the deposit anyway (what happens if you lose your job and can't find another for a long time? Your house would get repossessed. Not fun. A friend of mine, a contractor, has been out of work since June, and he's very good at what he does, so it isn't anything unusual)

  • original15 on 27/11/2017 - 11:03
    +3

    Don't lose hope OP people hire year round.
    Some slow down in the lead up to Xmas, some don't
    January is normally a busy time for job seekers so get in early this side of Xmas

  • Ken1977 on 27/11/2017 - 20:02
    +1

    It would be nice to take 3 weeks off work and relax, but this is the silly season and there is plenty of work around. Maybe make hay while the sun shines.

  • Brendoo on 28/11/2017 - 00:36

    Is the new person also a contractor, or permanent?

    • HighAndDry on 28/11/2017 - 11:38
      +1

      Doesn't matter, and would be a waste of OP's time and effort to put more thought towards.

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