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Project based contract

Project based contract

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Old Jan 23rd 2012, 8:52 am
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Default Project based contract

Does anyone know if an employer is required to give notice if an employee has a project based contract or can they just wait until the last day of the project and say "See You"?
This would make it difficult for someone on a 457 visa to get their tax affairs in order etc.
Thanks.
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Old Jan 23rd 2012, 8:56 am
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Default Re: Project based contract

Do you mean somebody would have a contract that runs for as long as it takes finish a piece of work? I have never come across that situation before I must admit. Seems like an incentive to drag something out.
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Old Jan 23rd 2012, 9:07 am
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Default Re: Project based contract

Thats what its called "a project based contract". Employer or employee can end the contract before completion by either the employee giving 1 months notice or the employer giving 1 months salary in lieu of notice. But what happens when the project actually completes?
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Old Jan 23rd 2012, 9:15 am
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Default Re: Project based contract

Originally Posted by desert-rat
Thats what its called "a project based contract". Employer or employee can end the contract before completion by either the employee giving 1 months notice or the employer giving 1 months salary in lieu of notice. But what happens when the project actually completes?
What usually happens is you put your things in a cardboard box and wave everyone goodbye on your way out. Unless you spoke with your employer well in advance about extension and have something in writing to back it up.

457 and project based contracts do not work very well. They used to in the dot com rage, when you could work for a body shop and jump from one project to another. The demand is not that high anymore and you can find gaps in between your projects, and the bodyshops operate in such a way that they do not pay you unless they get paid, so "bench time" is most cases is unpaid. That tends to dilute your good contract rate into something average and below average. If you can't guarantee your own work, they may or may not be helpful in keeping you engaged, so there is even higher than usual risk involved in 457 - project based contract combination.

Last edited by newjersey; Jan 23rd 2012 at 9:18 am.
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Old Jan 23rd 2012, 9:16 am
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Default Re: Project based contract

Originally Posted by desert-rat
Thats what its called "a project based contract". Employer or employee can end the contract before completion by either the employee giving 1 months notice or the employer giving 1 months salary in lieu of notice. But what happens when the project actually completes?
If the project is complete then surely the job has ended?

It would then be up to the employer to either offer you a job on another project, or not if they either have no more projects, or feel they don't want to for whatever reason.

As an example, when I worked for a construction company, all staff were employed on a project based contract - the employee was employed by the project and not the company.

When the project ended, they offered the manual labour employees redundancy and the engineers were offered temporary positions until another project started.

The manual labour employees they wanted to keep were then re-employed on the new project. Only the 'deadwood' weren't. The Engineers were all re-employed by the new project.
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Old Jan 23rd 2012, 9:27 am
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Default Re: Project based contract

Originally Posted by desert-rat
Thats what its called "a project based contract". Employer or employee can end the contract before completion by either the employee giving 1 months notice or the employer giving 1 months salary in lieu of notice. But what happens when the project actually completes?
I guess employee has to discuss options with the employer as the project comes close to completion in this case then. I mean somebody will be project managing it, it won't be the case that everyone turns up for work one morning ony to find the project is completed.
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Old Jan 23rd 2012, 10:20 am
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Default Re: Project based contract

Thanks for the input. Our contract on the project will reach completion at end of February. Company does not have alternative work in the pipeline. Just wondering if they should give a months notice of completion?
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Old Jan 23rd 2012, 10:28 am
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Default Re: Project based contract

Originally Posted by desert-rat
Thanks for the input. Our contract on the project will reach completion at end of February. Company does not have alternative work in the pipeline. Just wondering if they should give a months notice of completion?
I guess it would depend on your contract.

I didn't officially get a months notice of the completion of my project, but we knew about 6 weeks before it ended what date it would end...
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Old Jan 23rd 2012, 1:16 pm
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Default Re: Project based contract

Originally Posted by desert-rat
Thanks for the input. Our contract on the project will reach completion at end of February. Company does not have alternative work in the pipeline. Just wondering if they should give a months notice of completion?
Not normly. Fixed term contract is what it says on the tin. They are only required to give you notice if they want to end it early. You sort have the notice period from the date you sign the contract. We do 2 year contracts and although they normally get rolled over into a new one, most of the guys start setting up interviews in advance. Pretty crap way of doing things i think as we lose too many people who line up interviews, realise there is a nicer job going and leave when we would have liked to roll it over. But, thats HR for you.
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Old Jan 23rd 2012, 1:49 pm
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Default Re: Project based contract

Originally Posted by desert-rat
Does anyone know if an employer is required to give notice if an employee has a project based contract or can they just wait until the last day of the project and say "See You"?
This would make it difficult for someone on a 457 visa to get their tax affairs in order etc.
Thanks.
Have I missed something here?
If you are on a 457 visa, you are sponsored, correct?
If the project ends or you are out of a job for whatever reason, do you not have to find, not just another job, but another employer willing to sponsor you.?

Please correct me if I'm wrong.
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Old Jan 23rd 2012, 4:16 pm
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Default Re: Project based contract

Originally Posted by h2oskineil
Have I missed something here?
If you are on a 457 visa, you are sponsored, correct?
If the project ends or you are out of a job for whatever reason, do you not have to find, not just another job, but another employer willing to sponsor you.?

Please correct me if I'm wrong.
If you work for a body shop, they hold your 457 and subcontract you to their customers. Used to be quite popular. But if the work dries up they don't pay you, simple as. Not sure how it works with min salary levels. Anyway, that was one of the offers I had some years ago (not taken needless to say).
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Old Jan 23rd 2012, 5:27 pm
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Default Re: Project based contract

Originally Posted by desert-rat
Does anyone know if an employer is required to give notice if an employee has a project based contract or can they just wait until the last day of the project and say "See You"?
This would make it difficult for someone on a 457 visa to get their tax affairs in order etc.
Thanks.
Depends on your contract but basically project based contracts usually state something to the effect "work will continue until the work for which you have been engaged is completed" - which in a nutshell means when the contract has finished, your work is done and you are expected to leave unless you've signed a further contract stating otherwise.

Why don't you contact HR and ask them mate?
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Old Jan 24th 2012, 3:56 pm
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Default Re: Project based contract

Originally Posted by desert-rat
Does anyone know if an employer is required to give notice if an employee has a project based contract or can they just wait until the last day of the project and say "See You"?
This would make it difficult for someone on a 457 visa to get their tax affairs in order etc.
Thanks.

depends if the employee is salaried staff or agency contractor.

WA employment legislation says the company has to find another job for salaried staff employees (or offer retrenchment). But agency contractors just get a "See Ya" (Thats part of the reason why agency contractors get paid a higher hourly rate).

Dont know if employment law is the same in other states /territories.


Originally Posted by desert-rat
Thats what its called "a project based contract". Employer or employee can end the contract before completion by either the employee giving 1 months notice or the employer giving 1 months salary in lieu of notice. But what happens when the project actually completes?
If you are 457 or agency contractor and the project actually completes, .... well you you've known (or should have known) the 'proposed' completion date since you joined the project. If you get caught by surprise on a date thats approximately known at least 12 months in advance of a project completion and generally is finalised a couple of months before completion, then you've been sleeping on the job. And if you are 457 and havent spoken to your employer about your future in that last 6-8 weeks then you're not just sleeping but comatosed.

Originally Posted by desert-rat
Thanks for the input. Our contract on the project will reach completion at end of February. Company does not have alternative work in the pipeline. Just wondering if they should give a months notice of completion?
Why? They've been telling you (and the rest of the project team) about the Feb completion date for months presumably? You also know more than a month in advance (today Jan 25 you know that it will finish at end of Feb - so there's your 1 months notice) I've worked on project based contracts for the last 6 years. Always have my next project lined up before the existing project completes so I can transition straight across after completion date. Sometimes with the same company, sometimes not.

Last edited by Vegemite Kids; Jan 24th 2012 at 4:05 pm. Reason: spelling
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Old Jan 25th 2012, 9:59 am
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Default Re: Project based contract

Originally Posted by Vegemite Kids
depends if the employee is salaried staff or agency contractor.

WA employment legislation says the company has to find another job for salaried staff employees (or offer retrenchment). But agency contractors just get a "See Ya" (Thats part of the reason why agency contractors get paid a higher hourly rate).

Dont know if employment law is the same in other states /territories.
Its salaried staff so good news on that legislation.



If you are 457 or agency contractor and the project actually completes, .... well you you've known (or should have known) the 'proposed' completion date since you joined the project. If you get caught by surprise on a date thats approximately known at least 12 months in advance of a project completion and generally is finalised a couple of months before completion, then you've been sleeping on the job. And if you are 457 and havent spoken to your employer about your future in that last 6-8 weeks then you're not just sleeping but comatosed.
Project was due to complete April 2011 then has constantly changed completion dates since then!! I am a 457 but have no interest in staying here and have something lined up in the tax free Gulf again. Will be glad to get back to the first world after a year in this moron infested american state!!


Why? They've been telling you (and the rest of the project team) about the Feb completion date for months presumably? You also know more than a month in advance (today Jan 25 you know that it will finish at end of Feb - so there's your 1 months notice) I've worked on project based contracts for the last 6 years. Always have my next project lined up before the existing project completes so I can transition straight across after completion date. Sometimes with the same company, sometimes not.
Obviously if you need to go straight from project to project yoy cant be earning enough! Obviously I know there is a month from now until end Feb I was just hoping to get a different perspective on it than i get from the HR department of a large multi-national.
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Old Jan 25th 2012, 10:07 am
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Default Re: Project based contract

Originally Posted by desert-rat
Obviously if you need to go straight from project to project yoy cant be earning enough! Obviously I know there is a month from now until end Feb I was just hoping to get a different perspective on it than i get from the HR department of a large multi-national.
Unfortunately there is only one way to look at it.
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