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2e2 into administration - what next for contractors

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    2e2 into administration - what next for contractors

    Good morning all. With the news that 2e2 has just been placed into Administration, does anyone have any advice on what to do next as a contractor operating through them as a managed service?

    I have received payment for the December invoice and was just about to invoice for January but am now unsure what to do. Should I try to change agencies immediately and invoice via a different organisation for example?

    Any advice much appreciated.

    #2
    UK's 2e2 goes titsup

    First of all tell your client, as 2e2 might have 'forgotten' to mention this to them.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      Originally posted by cojak View Post
      UK's 2e2 goes titsup

      First of all tell your client, as 2e2 might have 'forgotten' to mention this to them.
      Thanks - have done so now. Waiting for further information currently.

      Comment


        #4
        Originally posted by crowe99 View Post
        Thanks - have done so now. Waiting for further information currently.
        Trying to think back to when this happened to me... ISTR that the timesheets are the key to the money and careful attention needs to be paid to whom they are sumbtted. i.e. the end client vs the agency (or their receivers) I lost one set when an agency went bust, but the client took the second set and paid out on them, meaning myCo only lost a months worth of invoices.
        "Israel, Palestine, Cats." He Said
        "See?"

        Comment


          #5
          Originally posted by NickNick View Post
          Trying to think back to when this happened to me... ISTR that the timesheets are the key to the money and careful attention needs to be paid to whom they are sumbtted. i.e. the end client vs the agency (or their receivers) I lost one set when an agency went bust, but the client took the second set and paid out on them, meaning myCo only lost a months worth of invoices.
          If you send your invoice to 2e2 then you'll go on the list of creditors - and are unlikely to see any or much of the £. Your contract with them should allow you to terminate if either party goes into insolvency, so I would get a direct contract in place with the client from now.

          I would also speak to the client and see whether they will pay your Jan invoice directly.

          Comment


            #6
            Originally posted by SarahL2012 View Post
            If you send your invoice to 2e2 then you'll go on the list of creditors - and are unlikely to see any or much of the £. Your contract with them should allow you to terminate if either party goes into insolvency, so I would get a direct contract in place with the client from now.

            I would also speak to the client and see whether they will pay your Jan invoice directly.
            The problem is the client's contract for Jan will be with 2e2, so they can't just pay the money to someone else, and even if they can are under no obligation to do so.
            Will work inside IR35. Or for food.

            Comment


              #7
              2e2

              Originally posted by VectraMan View Post
              The problem is the client's contract for Jan will be with 2e2, so they can't just pay the money to someone else, and even if they can are under no obligation to do so.
              In the same boat ... have you had any advice from your agency?

              Comment


                #8
                Originally posted by VectraMan View Post
                The problem is the client's contract for Jan will be with 2e2, so they can't just pay the money to someone else, and even if they can are under no obligation to do so.
                Also, the administrator will be on to the client asking them to pay any accrued work as a debtor while giving you your p/£ slice of the outstanding assets as a creditor, the client would have to be unbelievably generous to pay twice. As a further problem for you, most bank loans of the type 2e2 will have had will have floating charges across their entire estate meaning they get first call on the money after the formally secured debtors, that means those unsecured creditors will get beans at best.

                Comment


                  #9
                  Sit tight...for now

                  The best thing is to sit tight. Your contract is with the agent (not 2e2) who has insurance in place should such an event happen. Essentially, until your agent tells you to come off site, they're contractually bound to pay you. Someone might jump in and buy the part of the business that you're contracting for (there are 10 in all).

                  You can be assured that there are people behind the scenes trying to ensure that continuity is maintained with 2e2's client base.

                  Comment


                    #10
                    Originally posted by Ark3000 View Post
                    The best thing is to sit tight. Your contract is with the agent (not 2e2) who has insurance in place should such an event happen. Essentially, until your agent tells you to come off site, they're contractually bound to pay you. Someone might jump in and buy the part of the business that you're contracting for (there are 10 in all).

                    You can be assured that there are people behind the scenes trying to ensure that continuity is maintained with 2e2's client base.
                    That will VERY much depend on how much they are owed by the agency.

                    Insurance isn't worth squat on many of these occasions - we've seen agencies go bust leaving contractors out of pocket by £000's.
                    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
                    - Voltaire/Benjamin Franklin/Anne Frank...

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