Hi
Please help I would love some advice! Here is my situation.
Background:
I contract through an Umbrella Company >> Agency >> End Client.
I have a contract with the Agency (30 day payment terms) AND the Umbrella (who are legally my employer) pay me once they have payment from Agency.
I actually brought the end client contract to the Agency (as I have worked for the end client for a while). I engaged the Umbrella just for payroll etc. (I have opted in to the Conduct of Agency regs 2003 if that makes a difference).
The situation
The End client have paid the Agency late, the Agency have admitted they have a cash flow problem and state that they cant pay the Umbrella until they get paid. (Bare in mind I have 30 day terms with this agency in my contract). The Agency say that the Umbrella are obliged to pay me regardless (but that the agency have no obligations to pay the Umbrella e.g. its not the agencies problem that I haven't been paid but the Umbrellas).
Can anyone advise this is a minefield! A few questions:
1) I have 30 day payment terms in a contract with the agency. However as the agency don't actually pay ME but pay the Umbrella- the agency seem to think these 30 day payment terms in my contract with them mean nothing - is that right?
2) The agency say that the Umbrella should pay me even if they don't get paid. The Umbrella say this is untrue and they cant pay me until agency pays them- who is right?
3) Are the agency in breach of contract so that I have some legal sway to switch to an another Agency that the end client uses (that I know have a good reputation for paying on time etc). To add this is not a one off every month I am having to chase payment and getting the runaround.
4) Any recommendations on some legal firms who can advise here if needed?
Would really appreciate your help. Thanks in advance
Please help I would love some advice! Here is my situation.
Background:
I contract through an Umbrella Company >> Agency >> End Client.
I have a contract with the Agency (30 day payment terms) AND the Umbrella (who are legally my employer) pay me once they have payment from Agency.
I actually brought the end client contract to the Agency (as I have worked for the end client for a while). I engaged the Umbrella just for payroll etc. (I have opted in to the Conduct of Agency regs 2003 if that makes a difference).
The situation
The End client have paid the Agency late, the Agency have admitted they have a cash flow problem and state that they cant pay the Umbrella until they get paid. (Bare in mind I have 30 day terms with this agency in my contract). The Agency say that the Umbrella are obliged to pay me regardless (but that the agency have no obligations to pay the Umbrella e.g. its not the agencies problem that I haven't been paid but the Umbrellas).
Can anyone advise this is a minefield! A few questions:
1) I have 30 day payment terms in a contract with the agency. However as the agency don't actually pay ME but pay the Umbrella- the agency seem to think these 30 day payment terms in my contract with them mean nothing - is that right?
2) The agency say that the Umbrella should pay me even if they don't get paid. The Umbrella say this is untrue and they cant pay me until agency pays them- who is right?
3) Are the agency in breach of contract so that I have some legal sway to switch to an another Agency that the end client uses (that I know have a good reputation for paying on time etc). To add this is not a one off every month I am having to chase payment and getting the runaround.
4) Any recommendations on some legal firms who can advise here if needed?
Would really appreciate your help. Thanks in advance
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