Contract terminated help

**SueEllen** · 9 October 2010, 18:51

You can send them an invoice via recorded delivery and email for the 5 days giving them 30 days to pay.

Followed by a "Letter Before Action" when the invoice is overdue giving them another 21 days to pay up before you take them to the small claims court and charging them for all costs and interest.

However as this is a hassle I would just find another contract asap.

**VectraMan** · 9 October 2010, 19:34

WSS. You probably could extract 5 days worth of money from them, but you have to ask yourself if it's really worth the cost and hassle. If they're the sort of company that has a "cowboy/gun ho" attitude with contractors they probably aren't going to pay up just because you write to them. But you've got nothing to lose by sending an invoice.

There are pleanty of solicitors who'll send a letter for nothing or next to nothing, which is the next stage, but thereafter things get more expensive. FYI when I did something similar (and got a CCJ against the client) it ended up costing me £500 and I got none of the money because the client was bankrupt.

**diesel** · 9 October 2010, 20:10

Thanks for replies so far. Just to clarify i am LTD co. I have contract with agency and agency have their own with end client.

This is the terms for termination in the contract:
TERMINATION
x.1 An assignment may be terminated by the Company or the Subcontractor giving the other party the period of notice of 5 working days, except in cases of emergency and the Company’s decision as to what constitutes an emergency shall be conclusive.
x.2 Failure by the subcontractor to give notice of termination as required in S.17.1 shall constitute a breach of
contract and shall entitle the Company to claim damages from the Subcontractor for any consequent loss suffered by the company.

x.3 The Subcontractor acknowledges that the continuation of an Assignment is subject to and conditioned by
the continuation of the contract entered into between the Company and the Client. In the event that the contract between the Company and the Client is terminated for any reason the Assignment shall cease with immediate effect.

**SueEllen** · 9 October 2010, 21:59

And?

The contract between you and the agency may be on different terms than the one between the agency and the end client.

If you want your 5 days then demand it from the agency and follow it through.

**Saddo** · 9 October 2010, 22:54

SueEllen is right. You have no recourse with the client - your contract is with the agency.

Example: You have a dedicated server on the Internet where the SLA defines 99.9% uptime. A lunatic torches the ISP's server building. Do you hold the ISP or the lunatic accountable for your uptime?

The only problem is that if the agency aren't going to get their money then I doubt that it would be affordable for you to get yours. 5 days money isn't that much to write off so don't get bothered about it. However, make sure to create an audit trail of issuing an invoice and then at year end writing that invoice off - very good information for an IR35 investigation if you can demonstrate that you suffered actual loss.

One thing you have to be a little careful of is that if you decide to hold the agency to account then they could start making claims that you were taken off site due to your own incompetence (even if that weren't true). Do you really want to smoke your reputation for 5 days invoicing?

Go thru the mechanical process of collecting the money, but walk away before reaching for your cheque book and pen to pay a solicitor.

**diesel** · 10 October 2010, 08:28

Originally posted by Saddo View Post

SueEllen is right. You have no recourse with the client - your contract is with the agency.

Example: You have a dedicated server on the Internet where the SLA defines 99.9% uptime. A lunatic torches the ISP's server building. Do you hold the ISP or the lunatic accountable for your uptime?

The only problem is that if the agency aren't going to get their money then I doubt that it would be affordable for you to get yours. 5 days money isn't that much to write off so don't get bothered about it. However, make sure to create an audit trail of issuing an invoice and then at year end writing that invoice off - very good information for an IR35 investigation if you can demonstrate that you suffered actual loss.

One thing you have to be a little careful of is that if you decide to hold the agency to account then they could start making claims that you were taken off site due to your own incompetence (even if that weren't true). Do you really want to smoke your reputation for 5 days invoicing?

Go thru the mechanical process of collecting the money, but walk away before reaching for your cheque book and pen to pay a solicitor.

Thanks for reply.
I do understand my contract is with agency and i made client aware of that.

If this was the other way round i.e. I left without any notice, i am sure agency will try to bill me for end client losses, as they would expect 5 days notice from me.

Okay so it unlikley that end client is not likely to pay monies for 5 days to agency, but really that is the agency's problem, if client cant agree to the contract. Now i will be loss of income for next few weeks as i had planned my calendar with my other client around this job.

**VectraMan** · 10 October 2010, 09:24

You didn't say there was an agent. Have you even spoken to the agent yet? The client can't speak as to whether or not you're entitled to a notice period from the agent, and I guess strictly speaking the client can't tell you that the contract is terminated - that's down to the agent.

Before you get upset about not getting paid for the notice period, you should find out if you're getting paid for the notice period.

**b0redom** · 10 October 2010, 10:30

TBH it depends on how close to the wire the agent wants to play it. I always thought that MOO meant that even though there was a notice period, the agency were under no obligation to offer you work during the notice period and you weren't obliged to take it.

Probably worth a chance, but don't hold your breath!

IANAL though.

**BlasterBates** · 10 October 2010, 12:36

Your gripe if there is one is with the agency not with the client. You can´t demand anything from the client, you have to take it up with the agency. They should pay the 5 days notice period, or as others say, just find a new contract asap, and write it off. I have to say I think they might come up with some clause in the contract, which is conditional on the client signing off on timesheets, so it might not be straight forward, or the client may make unfounded accusations about your work, and you may end up in a mud slinging match, which may mean it just wouldn´t be worth the hassle.

Anyway worth a "friendly but firm" request to the agency for the money. Avoid any acrimonious angry dispute, if you can´t agree, then keep it polite and if necessary politely take them to court, all the time empahsising how much you would like to settle amicably. Difficult I know but really it´s the client at fault and the agency is caught on the middle on this one, and you can bet the client will giving reasons, which will probably mean the agency can´t claim money off them.

Contract terminated help