Can I chase my umbrella companies' debt for them?

[Sausage Surprise]

Schoolboy error here...in future say nothing.
1. Go on "holiday" wait till last payment hits account then don't go back.
2. Put agents phone number on auto reject.

[northernladuk]

Good advice!



The opt out status is important because if the worker doesn't opt out and the agency doesn't pay then they may be committing a criminal offence under the Agency Regulations section 12(c) which is a rather more serious matter than a civil dispute over an unpaid invoice....

Unfortunately in this case the OP opted out.

Actually thinking about wouldn't the opt in/out status be a red herring here? There is no dispute time sheets and money owed? The agent is just trying to be smart as he thinks that payment will compensate him for loss of income for the OP breaching notice period. The agent is in the wrong regardless of status.

[northernladuk]

To the OP. Why call it a day when you haven't chased it properly? Surely if it's a principle thing that's going to make you want to chase it harder. All the steps are detailed in the other threads if you search. Once you point out you are adding interest and quote relevant legislation about late debts they will start to take you seriously. There is the problem that bit sounds like you breached contract but that is no reason to withhold your pay. If they want compensation for that they need to start as new action.

Read how other contractors got their money and get fired in to them.

[TheFaQQer]

The agent is in the wrong regardless of status.

If you have breached the contract, and the other party has suffered a loss as a result, then you could be liable for that loss.

The OP breached the contract with the agency because they walked when they had not right to early termination. The agency has lost the income from the contract, and if they have been asked by the client to find someone else, then they have had to spend time and money finding a replacement as a result of the breach. Why should the wronged party have to pay for that?

I wouldn't give up without chasing my employer for the money, but I would bear in mind that if they did pay there would be nothing to stop the agency suing for breach of contract.

[northernladuk]

If you have breached the contract, and the other party has suffered a loss as a result, then you could be liable for that loss.

The OP breached the contract with the agency because they walked when they had not right to early termination. The agency has lost the income from the contract, and if they have been asked by the client to find someone else, then they have had to spend time and money finding a replacement as a result of the breach. Why should the wronged party have to pay for that?

I wouldn't give up without chasing my employer for the money, but I would bear in mind that if they did pay there would be nothing to stop the agency suing for breach of contract.

Absolutely. To get his money the OP could face the breach counter charge. I seem to think we discussed what the actual costs could possibly be but it was a bit of a guess. Normally we would say nothing ever goes legal with agents and it's all handbags and who backs down first. They don't tend to follow stuff up on principle. I guess it is up to the OP to decide if it's worth the risk of a counter claim. Depends on how much that breach claim will come to as well. I can't think it will be as much as a months income though.

[Safe Collections]

IMHO this is a bit of a tricky one. You could argue, if your final work was signed off and paid for by the client, then you are entitled to that money regardless. However, the agency could argue that you were in breach of contract as you were contracted to work for a certain period and failed to do so. If you were to take the matter to court, you could be faced with a counter suit from the agency for their loss of earnings from the contract. I could imagine that the Judge could take the position that the two cases would pretty much cancel each other out in which case you would have both wasted your time.

Your umbrella company is your employer and therefore they should chase the debt for you. If this were me I think I would try to mediate and reach a compromise with the agency so that at least you could end up with something

We would echo Lisa's points. We can virtually guarantee this will be defended on the basis that the agent incurred a loss equal to or greater than the ops. Once a counterclaim is filed it is virtually impossible to extricate yourself from the claim and it will headed for a hearing with a judge, with both sides having to pay their own considerable legal costs (generally in the region of £150-200 an hour and up).

The fact the OP left the contract prior to the end date when no notice clause exists has, in our opinion, hamstrung any serious possibility of recovering what is outstanding.

[kal]

Schoolboy error here...in future say nothing.
1. Go on "holiday" wait till last payment hits account then don't go back.
2. Put agents phone number on auto reject.

A great way to run your business! a more proactive approach is to perhaps read the contract you are signing with a view to understanding what you are getting yourself into...

[SueEllen]

We would echo Lisa's points. We can virtually guarantee this will be defended on the basis that the agent incurred a loss equal to or greater than the ops. Once a counterclaim is filed it is virtually impossible to extricate yourself from the claim and it will headed for a hearing with a judge, with both sides having to pay their own considerable legal costs (generally in the region of £150-200 an hour and up).

The fact the OP left the contract prior to the end date when no notice clause exists has, in our opinion, hamstrung any serious possibility of recovering what is outstanding.

We don't know how much money the claim for the OP has is for so it could be a small claim, where no solicitors are needed.

Someone previously on here walked out on a contract and the agency listed the costs which were less than what the contractor was owed, so the agency eventually paid the difference.

In any legal dispute you need to act reasonably. So if the agency counter-sues but doesn't explain their costs they aren't acting reasonably.

[Safe Collections]

We don't know how much money the claim for the OP has is for so it could be a small claim, where no solicitors are needed.

Someone previously on here walked out on a contract and the agency listed the costs which were less than what the contractor was owed, so the agency eventually paid the difference.

In any legal dispute you need to act reasonably. So if the agency counter-sues but doesn't explain their costs they aren't acting reasonably.

You are of course, absolutely correct in your comments the OP could be owed more than the agency claim and they may well roll over, but we doubt it.

It may well be worth a punt as far as trying to negotiate or threaten further action if unpaid, but we certainly would not recommend spending any serious money in the quest for payment, as in our experience that is one investment that is unlikely to generate a return.

[Wanderer]

Actually thinking about wouldn't the opt in/out status be a red herring here? There is no dispute time sheets and money owed? The agent is just trying to be smart as he thinks that payment will compensate him for loss of income for the OP breaching notice period. The agent is in the wrong regardless of status.

If the contractor didn't opt out then the agency regulations say they must pay the contractor for the time worked.

Now that doesn't mean that the agency can't attempt to recover their "losses" from the contractor but it does mean that they can't arbitrarily withhold payment.