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one month's notice on "gardening leave" but client refusing to pay

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    one month's notice on "gardening leave" but client refusing to pay

    Hello everyone

    My wife and I are Directors of a Limited company providing contracting and consultancy services in the field of Data and CRM. We have more than one Client.

    A contract which began way back in 2004 was based around me working 3 days per week in a particular Client’s offices and a further 6 days per month from home. Invoiced monthly, the sum was therefore very consistent – a 4 or a 5 week month based on three days at the “office” rate plus six days at the “home” rate.

    The contract was terminated by email last month and the former client has rejected our final invoice. We need to know whether this is legitimate. The story goes as follows:

    The client’s MD emailed me on 6th November to give our Company one month’s notice of terminating the relationship, effective that day. The role centred upon management of key accounts and the email indicated that management of these accounts had been taken back under direct control of the Client. There was no verbal communication whatsoever, just the one termination email. That same day, several things happened:

    1 our access to the client’s VPN was blocked
    2 our client email account was blocked from receiving or sending email via the Client’s Exchange server, stopping us from contacting the key accounts we had been looking after
    3 our access to client databases was blocked so I was unable to continue with the work I had been doing that morning, even if I had wanted to
    4 the key clients I managed were informed that I had left the company with immediate effect and several contacted me to ask what was happening and wish me well
    5 the Client’s own staff started to contact me to say goodbye and wish me well
    6 the email instructed us to return the client’s laptop and office door keys, which we duly did

    In view of the above, it was very clear that our services had been dispensed with immediately and that the one month notice period was to be spent away from the office. When the notice period expired, we raised an invoice based on the usual pattern of three days per week at the “office” rate and a further six days at the “home” rate.

    The former Client has now rejected the invoice, stating that I did not report for work during the notice period, nor offer to work. This is absolutely correct, and the only contact during this time was to the Client’s wife when chasing her for payment of an overdue invoice. Incidentally, home is 200 miles from the office so "popping by" is not an option and the tone of the email led me to believe that I would have been escorted off the premises in any case.

    I maintain that the actions taken by the Client to block access to email, the VPN and client systems; the fact that key clients and staff had been told of my departure, and the fact that I had been told to (and did) return the Client’s laptop and keys point firmly to the fact that our services were no longer required and this is merely an excuse to avoid paying the invoice.

    Please excuse the essay (!) but I’d be very interested to hear your thoughts and suggestions about this. If you are able to provide any guidance, we'd be hugely grateful.

    Eric

    #2
    I'm not surprised the client rejected your invoice. You invoiced them for doing no work? You are a contractor. You get paid when you work.

    Ultimately it depends on your contract but generally, any contractual terms that would oblige your client to provide work and pay you during any notice period risk your IR35 status being questioned. Not sure how much of a risk that is with both you and your wife working on the contract as personal service gets a lot harder to argue so maybe that isn't an issue.

    It seems that your client gave you notice and I'm sure if they needed you within those 30 days for any kind of handover work they would have requested it but if there was no work to do during the notice period I'm not sure how you think you can invoice them.

    If you feel your contract gives you the right to invoice for days not worked, then by all means pursue the debt as per cojak's advice but be prepared to take it to court.

    Comment


      #3
      You have been paid for the work you did, please do not get hung up on notice period etc. they are worthless.
      Originally posted by Stevie Wonder Boy
      I can't see any way to do it can you please advise?

      I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

      Comment


        #4
        ....

        Originally posted by helpneededplease View Post
        ...snip

        This is absolutely correct, and the only contact during this time was to the Client’s wife when chasing her for payment of an overdue invoice.

        ...snip

        Eric
        Was this Google or Amazon?

        I am sorry your 10 year contract was terminated. This is business, it happens. No, it's not nice when it doesn't happen amicably. Move on. Notice is for permies.

        Comment


          #5
          feedback to your Posts

          Hi to you all and thanks for the very fast replies.

          There are basically two diametrically opposed lines of thought about this.

          1 - the typical monthly invoice value sets a precedent (comment from a contractor I know) and the notice period of one month should be for a broadly equivalent figure as the Client didn't let me work it.

          2 - the notice period is worthless, and because I didn't work that month, the former Client shouldn't be paying anything.

          It's tough to square these two positions. The client's argument with me seems to be that I didn't contact him to offer to work, but having been terminated by that wonderful channel email and email/VPN etc switched off as though he didn't trust me, I wasn't inclined to have a friendly chat.

          Has anyone been in this same position or had good advice from a specialist service they'd be happy to recommend?

          Thanks Eric

          Comment


            #6
            Well it all depends on what the contract states.

            Usually, in IT contracting, a notice period in one of our contracts is pretty meaningless since if you dont do any work, you dont get paid. End of. Our contracts are not like permie contracts of employment where they have payment in lieu or a working notice period.

            However, if the contract is more like that drawn up by large corporates, your company (not you) may have different terms that say something else regarding this situation.

            Im a bit surprised you've been contracting for at least 10 years but are not aware of the contract 'no workie, no payie' clause.

            If you want to know where you stand, you're going to need legal advice rather than that from a forum.
            I couldn't give two fornicators! Yes, really!

            Comment


              #7
              Originally posted by helpneededplease View Post
              but having been terminated by that wonderful channel email and email/VPN etc switched off as though he didn't trust me, I wasn't inclined to have a friendly chat.
              I'm not sure why you're taking that personally; it was unlikely to be anything to do with trust but more to do with strict company policy and insurances. They can't let people have access to their systems if they are no longer authorised to do so.

              Comment


                #8
                feedback to your posts

                Hi TheCyclingProgrammer and BolshieBastard (great name BTW).

                It's the fact that it came via email which I find insulting; it might as well have been by text! Having worked there for ten years, I would have expected a conversation as a minimum level of professional courtesy. Don't have a problem with them blocking access etc, that's SOP, it's just comical they're using my failure to contact them after that to see if they wanted my input (when clearly the answer was "No") as a reason for rejecting the invoice. They didn't say "no work during the four weeks = no pay", they're saying that I didn't contact them (and obviously nor did they contact me).

                Other contracts which have ceased have been with good grace on both sides so this is a new situation for me. The contract refers to the Centre for Dispute Resolution as a vehicle for mediation in the case of any dispute. Do you have any experience of the organisation or an equivalent service?

                Cheers

                Comment


                  #9
                  Originally posted by TheCyclingProgrammer View Post
                  I'm not sure why you're taking that personally; it was unlikely to be anything to do with trust but more to do with strict company policy and insurances. They can't let people have access to their systems if they are no longer authorised to do so.
                  Absolutely. They put permies on gardening leave before their contracts end to keep them away from data so hardly surprising they will cut a supplier off immediately. Just due diligence really. Nothing to take personally.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    1 - the typical monthly invoice value sets a precedent (comment from a contractor I know) and the notice period of one month should be for a broadly equivalent figure as the Client didn't let me work


                    Clearly complete nonsense but did make me smile

                    Did you ever take 4 weeks holiday in the past 10 years - did you invoice the client ?

                    Comment

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