HR Inform -an 'auto renew' agreement - what are your thoughts? - Ethics and principles - Our Profession

17 HR Inform -an 'auto renew' agreement - what are your thoughts?

10 Mar, 2021 18:48

Hello fellow professionals,

I'd welcome your views on auto-renew contracts and the fact that HR Inform is sold via an auto-renew contract.

I subscribed in 2019 and paid upfront for the year. In 2020 I received an invoice and again paid upfront for the year. This year I received the usual invoice but decided not to renew as I no longer need the service (to be honest I haven't used it very much) and I have recently been made redundant. I continued to receive demands and eventually discovered that in fact the agreement I signed in 2019 was an auto-renew agreement and as I didn't give 30 days notice of termination, I am now liable for the full 2021 cost, even though I haven't used the service at all this year.

This seems harsh and although may be contractually correct, I don't like the approach (I'm receiving continuous reminders and demands from Croner Groups payments team). I explained my situation and asked them to forgive the oversight of not realising it was an auto renew contract but my pleas have so far fallen on deaf ears and the demands are escalating.

I've been a member of the CIPD for nearly 25 years and have paid my memberships every month without question for all that time. Am I being unreasonable in asking them to waive the payment this year?

Has anyone else had a similar experience?

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Ray | 0 Posts

10 Mar, 2021 19:30

In some countries auto-renew contracts are only enforceable if the supplier provides a timely reminder that the contract is about to renew automatically (often 2 months), leaving the customer with time to decide whether to renew or not.
Sadly this isn't the case in the UK and if you've signed and accepted the clause, then you are bound by it (caveat emptor) - you were right to ask for them to apply discretion and waive the charge, but they are under no obligation to do so.
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Keith | 0 Posts

10 Mar, 2021 19:37

Sorry I think the lesson here , as with most things , is, caveat emptor.

Most online services are sold on auto renew so in many ways I would be more surprised if it wasn’t.
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Maya | 0 Posts

10 Mar, 2021 21:27

On the other hand... nothing wrong with a good bit of common sense and customer service, which can be more valuable than the auto-renewed contract. I missed the deadline to cancel an auto-renew on an app by an hour, asked Apple if they could do anything (even though I was aware it was very unlikely), and received a refund as a gesture of goodwill. One happy customer!
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Andrea | 0 Posts

18 May, 2021 14:36

Having the same problem. The way I read it was that after the initial 3 year Contract the auto-renew was one-year. Not so. Having a fight now that I may not win. However, I'm surprised that CIPD would want to put their name to such underhand practices.
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Andrea | 0 Posts

25 May, 2021 10:06

In reply to Andrea:

A quick update is that how I read it is not how it works. The Renewal Period is the same as the Initial Contract Period and is automatic without a reminder. Croneri have been given 35 months notice of cancellation and acknowledged that this will terminate. A very expensive lesson learned and it's my own fault. My advice to anyone wishing to sign up to HR Inform is to read the Contract very carefully, especially the 'renewal' information. Buyer beware!
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David | 0 Posts

25 May, 2021 17:19

In reply to Andrea:
Recall that Rank Xerox at one time had pretty restrictive 'small print' in their copier rental contacts whereby they automatically renewed unless the renter cancelled them on the exact 12 month anniversary date and if you happened to miss that specific date for any reason, then caveat emptor and tough and all that..... This became notorious though as 'sharp practice' at the time, and the company's good reputation plummeted as a result and they must have lost a massive amount of lucrative business - I recall once getting very angry indeed with one of their salesmen about it all.

I think Rank Xerox subsequently fortunately 'reformed' and reverted to less-sneaky contracts but seems that others may not have fully learned that lesson and if CIPD is indeed in effect condoning all this via close commercial association then should they be??

Perhaps someone from CIPD might care to explain etc?
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Julie | 0 Posts

26 May, 2021 07:07

This is the same situation as peninsula. My manager signed a 3 year deal. While I studied cipd to L5, which took me 2 years. My company said that when the contract ended I would have completed my studies and receive a pay increase. I hadn’t been privy to the contract details for peninsula, so when I went to cancel last July, I was told it had auto renewed for the 3 years because there was a 6 month notice period, meaning we should have cancelled in February! You wouldn’t mind so much but as a SME we are paying over £400 per month, for a service we barely use. I tried getting out of the contract to, but they are no ha ing any of it, but the took off the agreed increase of 7% or so, so we pay the same as the previous few years. I would avoid contracts like this in future, more so when they don’t send a reminder of a pending contract renewal!
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Angela | 0 Posts

29 Nov, 2021 16:04

Hi, I just noticed that their cancellation policy did not look right and I think this is unacceptable from this CIPD approved service.
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David | 0 Posts

29 Nov, 2021 17:40

In reply to Angela:
Concur - see final line of my 25 May post, above, CIPD,
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David | 0 Posts

29 Nov, 2021 19:22

In reply to David:
PS

read very carefully:
www.hr-inform.co.uk/terms-and-conditions

guidance eg here:
www.hempsons.co.uk/.../

Would have thought that any rolling contract ( unless its terms expressly say you can’t do it) should be not allowed ever to ‘roll’ by giving notice to terminate it at the end of the initial contract term at the same time as it’s taken out or as soon afterwards as is possible
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Andrea | 0 Posts

30 Nov, 2021 10:28

In reply to David:
Thank you David. I'd like to see this kind of thing outlawed - it's disgraceful.
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Angela | 0 Posts

30 Nov, 2021 12:52

In reply to Angela:

To let you know, they said they can make it manual instead if I wanted. The did write Manual on the document but then want you to sign this declaration:-

"The contract shall be for the duration of the initial Contract Period (3 years down from 5) with no provision for early termination. The contract shall continue automatically after the Initial Contract Period for the same period ("the Renewal Period") unless terminated by either party giving a minimum notice of 30 days written notice to expire at the end of the Initial Contract Period or any subsequent Renewal Period."

This is only a one page document and once you sign, I am looking and I cannot see that you can cancel until your period ends? Lawyers??

Anyway, do you think CIPD are aware of this? It is a real shame.
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Nina Waters | 0 Posts

1 Dec, 2021 13:32

In reply to Angela:
I haven't ever used HR Inform, but having read this would be highly averse to entering any kind of renewing contract like this. Surely it does their brand no favours to depend upon this kind of practice to retain customers - if the product were strong enough, surely there would be no need for it. Does the CIPD have a view?
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Michelle | 0 Posts

24 Jan, 2022 17:21

Hi Siobhan, I'm going through the same now - I've been with them for a number of years - this year, they failed to follow Gov guidelines which is to notify you in advance of your 30 day notice period commencing that I was up for renewal, a 3 year renewal - not only that, they failed to send my invoice - as far as I was aware, I hadn't renewed therefore it was due until I received a notice pay - I paid for this year Dec 21 - Dec 22 and issued a cancellation expecting it to cancel next December. Today I've been told its been automatically renewed for 3 years, and will now end in 2024 - no advance notice, nothing. I'm challenging and intend to speak to a lawyer about it. I think its an appalling practice, no wonder Croner and Peninsula have such a bad reputation.
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Marie | 0 Posts

7 Nov, 2022 15:10

Good afternoon,

We are experiencing the same problem. We decided not to renew in June 2022 but have been advised that we have to pay up until June 2023 due to an autorenewal and have been sent an invoice. We have not used the system since June and very rarely before. Being a charitable organisation and a member of the CIPD for many years, this is very disappointing.
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