LIST OF CAUSES OF CONTRACT DISSOLUTION/CANCELLATION

Created by Medz Polestico, Modified on Fri, 6 Sep, 2024 at 4:26 PM by Medz Polestico

updated as of Sep 2, 2024

OBJECTIVE To identify the true reason for contract cancellation for reporting and forecasting purposes.

EFFECTIVITY SEPTEMBER 1, 2024

2024 List of Causes of Contract Dissolution / Cancellation

CANCELLATION TYPE	CAUSE OF DISSOLUTION	TRIGGERS	DESCRIPTION
Contractor-Initiated RESIGNATION	Major Life Change	Relocation (Migration)	The contractor is moving to another place with either limited WFH capabilities
		Educational Pursuits	The contractor will focus on acquiring new knowledge, skills
		Entrepreneurship	The contractor will focus on building own business or take over an existing business
		Career Change	The contractor is transitioning from one professional field to another role
		Retirement	The contractor decided to cease working for any particular reason
		Family Building	An intentional decision of a contractor to pause or stop work entirely to focus on personal and family-related milestones. This includes significant life events such as marriage, pregnancy, and raising children. Unlike household issues, which may involve managing everyday responsibilities or unexpected challenges, family building is a proactive choice driven by personal priorities rather than a reluctance to work.
	Job Dissatisfaction	Role Misalignment	There is a mismatch between an individual’s responsibilities, skills, or interests and their current role or position within an organization.
		Remote Work Compatibility	“Remote working is not for me”
		Weak Confidence in Leadership	Lack of trust or assurance in a leader's ability to guide, inspire, or make effective decisions.
		Work Schedule Issues	Problems or conflicts related to the timing and structure of work hours.
		Pay Dissatisfaction	Contractor is unhappy with their compensation for various reasons. This includes but not limited to Better Offer, No Increase in Pay Rate, FT to PT
		Lack of Incentives	Contractor is unhappy due to absence or insufficiency of benefits and rewards that motivate and support employees. This includes but not limited to Paid Leaves, Lack of HMO
		Limited Growth Opportunities	Constraints on an employee's ability to advance their skills, knowledge, and career within an organization. This includes but not limited to trainings, certifications, managerial roles
		Task Overload
	Inability to Work	Health Issues	encompass a range of medical and psychological conditions that can impact an employee's ability to perform their job effectively and may require specific accommodations or support. This included but not limited to disability and mental health
		Problem with Resources	refers to challenges related to the availability, adequacy, or management of tools, materials, or support necessary for completing tasks effectively.
		Contractor Demise	death of a contractor
		Household Issues	refer to personal or domestic challenges that impact an individual's ability to manage work responsibilities effectively.
	Interpersonal Conflict	Difference in Values or Beliefs	refers to conflicts or discrepancies arising from divergent personal, cultural, or organizational values and beliefs.
		Manager Friction	refers to conflicts or tensions between a manager and their team, often stemming from the manager's problematic attitude or behavior. This included but not limited to attitude problem, toxicity
		Team Incompatibility	refers to personality clashes or differences that result to lack of belongingness / acceptance
		Workplace Mistreatment	refers to any behavior or action within a work environment that undermines an employee's dignity, well-being, or professional performance.
	RS Service Dissatisfaction	Unresolved Issues	refers to the frustration and displeasure experienced by contractors when problems with a service remain unaddressed or inadequately resolved.
		Inefficient Processes	occurs when the contractor experiences frustration due to ineffective or poorly managed procedures within a service delivery system.
		Legal or Compliance Issues	arises when the contractor faces problems related to the adherence to legal regulations or industry standards within a service.
		Inconsistent Service Standards	occurs when the contractor experiences varying levels of service quality, leading to frustration and disappointment.
		CRE Conflict	refers to disagreements or issues arising between the contractor and the CRE. This includes but not limited to miscommunication, etc.
Client-Initiated REMOTE CONTRACTOR TERMINATION REMOTE CONTRACTOR BUY-OUT PROJECT-BASED TERMINATION	Under Performance	Knowledge and Skill Gap	refers to the disparity between the current capabilities of individuals or teams and the level of expertise required to meet job demands or organizational goals effectively.
		Communication Problem	refers to issues that arise when there is a breakdown or inefficiency in the exchange of information between individuals or groups.
		Productivity Issue	refers to challenges that hinder the efficiency and effectiveness with which work is completed.
		Excessive Absenteeism and Tardiness	refers to a pattern of frequent or prolonged absences and tardiness from work that significantly exceeds the norm or established expectations.
		Sub-standard Quality of Work	refers to output that fails to meet the established criteria, expectations, or standards set by an organization or industry.
		Uncoachable	refers to individuals who are resistant or unwilling to receive and act on feedback, guidance, or instruction intended to improve their performance or behavior.
		Limitation on Resource	refers to challenges related to the availability, adequacy, or management of tools, materials, or support necessary for completing tasks effectively including issues such as remote work availability and internet connection reliability.
		Work Avoidance	refers to behaviors or strategies employed by individuals to evade or delay tasks and responsibilities associated with their job.
	Misconduct	Lack of Work Ethic	refers to a deficiency in the attitudes and behaviors that are generally considered essential for effective and reliable job performance.
	Misconduct	Breach of Contract	occurs when one party fails to fulfill their obligations as specified in a legally binding agreement, resulting in a violation of the contract terms.
	Interpersonal Conflict	Difference in Values or Beliefs	refers to conflicts or discrepancies arising from divergent personal, cultural, or organizational values and beliefs.
		Personality Conflicts	refer to disagreements or tensions between individuals in the workplace that stem from differing personalities, attitudes, or interpersonal dynamics.
		Inability to Adapt	refers to challenges individuals or teams face when they struggle to adjust to changes, new conditions, or evolving demands in their work environment.
		Team Integration Challenges	refer to difficulties that arise when combining new or existing team members into a cohesive and effective unit.
	Restructuring	Partnership, Merging and/or Acquisition of Business	reorganizing and realigning a company's operations, structures, and strategies following the consolidation of two or more organizations.
		Hiring offshore talents directly	involves the process of recruiting and employing skilled professionals from outside one’s home country, without the use of intermediaries or third-party agencies.
		Role Redundancy	involves reorganizing an organization's structure and operations in response to the identification and elimination of overlapping or unnecessary job positions.
		No Additional Task Available	involves reorganizing an organization or team when there are insufficient tasks or responsibilities to justify certain roles or positions. This situation often arises when business needs change, projects are completed, or operational demands decrease.
		Change of Leadership (Management Issues)	involves reorganizing an organization's structure, processes, and roles in response to a transition in its leadership.
		Building own team with local employee	involves reorganizing an organization’s structure and operations to focus on assembling and integrating a team of local talent.
	Client Finances	Financial Downturn	refers to significant alterations in an individual’s or organization’s financial condition, which can impact their economic stability, operations, or personal circumstances.
		Budget Cuts	refer to limitations or restrictions on the amount of financial resources available for specific projects, activities, or operations.
		Reallocation of Funds	refer to unforeseen expenses that arise suddenly and are not accounted for in the initial budget or financial plan.
	End of Project (Project based contracts only)	Project Completion	refers to a formal process in which a project is officially concluded and closed. This process involves finalizing all project activities, ensuring that all deliverables and objectives have been met.
	Business Closure	Loss of Clients / Customer Attrition	refers to the situation where a company is forced to shut down its operations because it has lost a significant portion of its client base, resulting in insufficient revenue to sustain its business.
		Funding Shortage	occurs when a company is forced to shut down its operations because it cannot secure sufficient financial resources to cover its expenses and sustain its activities.
		Financial Difficulties	refers to the situation where a company is compelled to shut down its operations because it faces severe financial problems that it cannot overcome.
		Economic Downturn	refers to the situation where a company is forced to shut down its operations as a result of a significant decline in economic conditions that adversely affects its financial health and operational viability.
		Legal Problems	occurs when a company is compelled to shut down its operations as a result of significant legal issues that impede its ability to continue functioning.
RS SERVICE TERMINATION	RS Service Dissatisfaction	Billing & Payment Issues	occurs when the client experiences problems with how they are billed or how their payments are processed, leading to frustration and dissatisfaction with the service provider.
		Communication Gaps	occurs when the client experiences problems related to inadequate or ineffective communication with a service provider.
		Cost Value Concerns	occurs when the client feels that the cost of a service does not justify the value they receive.
		Technological Incompatibility	arises when the clients experience issues with how a service integrates or interacts with their existing technology systems.
		Contractual Disputes	occurs when disagreements or conflicts related to the terms and conditions of a contract lead to the client frustration and dissatisfaction with the service.
		Service Quality Deficiencies	occurs when the quality of the service provided does not meet the client’s expectations or standards.
		Compliance and Legal Risks	occurs when the client encounters issues related to the service provider's adherence to legal regulations and industry standards.
RS-Initiated ADMINISTRATIVE CANCELLATION	Client Unavailability	Cannot be Contacted
	Client Unavailability	Invoice Payment Delays	refer to situations where payments for invoices are not made by the agreed-upon due date, impacting cash flow, financial stability, and business operations.
	Staff Unavailability	Cannot be Contacted
	Staff Unavailability	Absence Without Notice
CONTRACT AMENDMENTS	New Account Holder	Change in POC / Client name
CONTRACT CORRECTION	Contract Information Errors	Change in Currency
REVOKED START-UP	Did Not Start	Contractor Withdrawal
	Did Not Start	Client Withdrawal
	Client Not Ready	Insufficient Training Resources	refers to the lack of adequate materials, tools, or support needed to effectively train clients or users before they can fully engage with or utilize a product or service.
	Client Not Ready	Client's Premature Assumptions of Expertise	implies that the client’s expectations about the level of expertise were set before the contract was fully aligned or agreed upon, which could be a sign that the client is not fully prepared or ready for the engagement.
INVALID START-UP	Inhouse Testing
	Inhouse Cancellation
	Duplicate