Yes. Under clause 24.2, a PM can remove an employee from the job by instructing it with reasons, and you then have one day to take that person off the contract altogether. The clause sets no test for how good the reasons have to be, and the contract doesn't list the instruction as a compensation event.
The clause number and rule are the same in NEC3 and NEC4 ECC. Under the NEC4 subcontract, the Contractor gives the instruction. It covers more than site presence: "no further connection" reaches office-based work on the contract too.
The next 24 hours
- Check who issued it. It should come from the Project Manager or a notified delegate, in a form that can be recorded, and it should give reasons. See Project Manager instructions.
- Ask for missing reasons at once if none are stated. A verbal comment or an email from the Client isn't the same thing.
- Move the person off the job. Clause 27.3 requires you to follow instructions given in line with the contract, and arguing first puts you in the wrong.
- Take advice from HR. The contract only ends their link with this job. It doesn't end their employment, and how you treat them is a matter of employment law, not NEC.
- Warn about the effect. If losing the person could delay Completion or a Key Date, give an early warning.
- Replace them. If they are a key person in the Contract Data, you need acceptance of the replacement: see replacing a key person.
Who pays, and what decides it
| Situation | Contract position |
|---|---|
| A real conduct, safety or competence reason | Contractor's cost. Not on the 60.1 list |
| Reasons given, but you think they're weak | Comply, then dispute it. No specific event applies, so any claim would need another route, such as breach under 60.1(18) |
| Reasons plainly untrue or for an improper purpose, such as pressure over a claim | Comply and take advice. Clause 10 is relevant, and it may support an argument that the power wasn't used as the contract intends |
| Someone employed by a Subcontractor | Clause 26.1 treats a Subcontractor's employees as the Contractor's, so the instruction still reaches them. Pass it down immediately |
The contract doesn't say that the reasons have to be good ones. The requirement is that they are stated. So a challenge can't simply be "we don't agree". It needs to show something more, and our clause 10 guide sets out what that clause can and can't do. A dispute can go through your disputes Option, but take legal advice on any argument about misuse.
Sample reply
"We acknowledge your instruction of [date] under clause 24.2 to remove [name], for the reasons stated. [Name] will have no involvement in the contract from [date and time]. [Replacement name] takes over the role. We note this may affect [activity], and an early warning follows separately. We reserve our position on the stated reasons and will write separately if needed."
Keep that last sentence factual. Don't argue the person's case in the same letter, and take care with any personal details. A contract communication can be seen by many people, so write it accordingly.
What the Project Manager should do
Write the reasons as observable facts: dates, what happened and which requirement was affected. A short factual note protects everybody, including the person named. Avoid opinions on character, and don't use this power as a commercial lever. A person's removal for a safety breach might also connect with the rules on health and safety in the Scope, so state that if so.
In practice, a quiet word often solves a problem before an instruction is needed, and many Contractors would rather move someone voluntarily. If it has gone further than that and the relationship is suffering, see what clause 10 actually requires. Similar situations are collected in the NEC questions hub.
Related guides
- NEC Questions Answered: Real Situations on Site
- We Need to Replace a Key Person: What Is Required?
- Do We Need the PM's Acceptance to Appoint a Subcontractor?
- Our Subcontractor Notified Late: Can We Still Claim Upstream?
- A Test Failed: Who Pays for Retesting?
- The Supervisor Made Us Open Up Work and Found Nothing
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This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.