Contract Breach (Received Letter from Solicitor)..Please help.. Contract Breach (Received Letter from Solicitor)..Please help..
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  1. #1

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    Default Contract Breach (Received Letter from Solicitor)..Please help..

    Please help..
    Lets say I have a limited company "LLLL Ltd" and i have signed a contract with an agency "AAAA Ltd", working for a public sector company.
    I terminated my contract October 2019 because i did not like working for the agency.
    I was job less for almost 3 months after the termination in Oct 2019 and then i have got a new contract from the same public sector company directly but this time its Inside IR35. Hence i have decided not to have my own limited company any more and wanted to go-through umbrella company.

    I have advised my accountant to close my LLLL Ltd company and its currently going through closer. Also i have taken the inside IR35 contract with public sector and the umbrella company is running my pay role.

    The Agency i have worked till October 2019 started saying its a contract breach and they have advised their solicitor to send me a notice.
    Now they have stated i need to pay every day £70 i worked for the public sector company sofar and also if i want to continue to work then i need to include the agency in my contract so that they will get that £70 day. I am not sure what to do but i definitely wanted to fight my right to work..Please suggest

  2. #2

    Respect my authoritah!

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    Who did they send this message to? You or your ltd company. Who was the first contract with? What were the exact terms of any handcuff clause?

    Personally, I'd thank them for their enquiry, and ask them to refer further questions to my employer.
    <-2 5m->

  3. #3

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    Quote Originally Posted by NotAllThere View Post
    Personally, I'd thank them for their enquiry, and ask them to refer further questions to my employer.
    No point asking any questions or going in to detail as the above covers it beautifully.

    Not worth discussing if the handcuff would stand or not because it was between the Ltd and the agent. The money must come from the Ltd which no longer exists.

    To come after you they would have to pierce the corporate veil to identify you personally which they won't do.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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    Quote Originally Posted by northernladuk View Post
    No point asking any questions or going in to detail as the above covers it beautifully.

    Not worth discussing if the handcuff would stand or not because it was between the Ltd and the agent. The money must come from the Ltd which no longer exists.

    To come after you they would have to pierce the corporate veil to identify you personally which they won't do.
    Funnily enough, this is approximately the position I find myself. We'll see what the judge says.
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  5. #5

    Should post faster

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    Quote Originally Posted by northernladuk View Post
    No point asking any questions or going in to detail as the above covers it beautifully.

    Not worth discussing if the handcuff would stand or not because it was between the Ltd and the agent. The money must come from the Ltd which no longer exists.

    To come after you they would have to pierce the corporate veil to identify you personally which they won't do.
    WHS. Even if the inside-outside IR35 issue was not present, these idle threats never go anywhere. They know if they piss off the client it's just not good for them and always prefer to not do so.

    I've had them threaten the client in some cases also and usually end up in the department manager's or directors office having a nice laugh together as we drink a coffee and read the e-mails / letters.

    Sometimes it ends up as a call on the speaker phone between the client and the pimp where the pimp gets a stern telling off and the client puts the call on mute now and then as one or both of us are laughing too hard.

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    Pity the Ltd wasn't closed before this happened....

  7. #7

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    An agency will likely have a clause with the client where they get a percent of the salary if their guy goes perm.
    On that basis it’s between the client and agency.
    The agency are probably trying it on......

    Or they have no evidence of the OPs malfeasance. And are on a fishing exercise.
    Best suggestion for OP is to send a ‘without prejudice’ letter denying at all and suggesting they provide evidence.
    See You Next Tuesday

  8. #8

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    Quote Originally Posted by NotAllThere View Post
    Who did they send this message to? You or your ltd company. Who was the first contract with? What were the exact terms of any handcuff clause?

    Personally, I'd thank them for their enquiry, and ask them to refer further questions to my employer.
    ----
    They have send the message to my limited company and mentioned my name since i am the director of the company.

    exact terms of handcuff clause...

    " The Contractor will not accept work, provide services or products directly to the Client or subsidiary
    during the period of this contract or for a period of twelve months from the termination of this
    contract without the written consent of the Company."

  9. #9

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    Quote Originally Posted by Ongole View Post
    ----
    They have send the message to my limited company and mentioned my name since i am the director of the company.

    exact terms of handcuff clause...

    " The Contractor will not accept work, provide services or products directly to the Client or subsidiary
    during the period of this contract or for a period of twelve months from the termination of this
    contract without the written consent of the Company."
    12 months is pretty unfair and usually unenforceable but as it's only been 3 months it could possibly be an issue...

    But as I say, this is term in a contract between an agent and a company that no longer (or won't soon) exist... so pointless talking about the logistics of this.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  10. #10

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    Quote Originally Posted by WordIsBond View Post
    Pity the Ltd wasn't closed before this happened....
    My accountant is very slow and VAT deregister application already submitted to HMRC.

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