Advice Required, Shafted by Agency

[mdk1981]

Hi all,

I am currently having a nightmare with a certain agency refusing to pay, accusing me of breaching my contract.

I was contacted by this agency in regards to a 3 month contract overseas. The project sounded great, so the contract was signed. The agency had given me a start date, and so I booked flights, accommodation, etc. After arriving at my hotel, I receive a call from the agency stating that the start date had been moved to the following week.

Because of money lost from that week of not working, I had informed the agency that I could not afford another 2 full weeks of flights and accommodation, so I would start only if they could pay me a week early to cover costs. They agreed to this.

Two weeks on, and no payment whatsoever from the agency. They state that a payment was made into my account, but still to this day there is nothing at all.

As there was no more funds for me to travel back out to the end company, the agency are now saying that I have breached the contract, and are refusing to give me any payment whatsoever (which actually confirms that no payment was actually given as promised)

Now I am nearly £2,000 out of pocket.

Any advice on this would be much appreciated.

[monkfish]

Wow.

I'd be looking at your contract first in particular effective Start Date and End Date that was agreed.

As you made yourself available and ready to commence work on the effective Start Date specified you need to find out what's gone wrong and why the agency wants to move it with no compensation to yourco.

Some agencies will put a clause to the effect that Start Dates may change due to rules/regs, clearances, etc BUT you would have known that before travelling, yes?

I would suggest its not really on for a telephone call to arbitrarily change the Terms and Conditions that you agreed to but you're always going to be pointed towards the contract you agreed to. How watertight is that Start Date that you can bill from.

Did you elect to opt out? Did you engage a contract review that might have highlighted typical commercial issues with your contract?

You need professional help. That's going to cost money though. Good luck.

[northernladuk]

Wow.

I'd be looking at your contract first in particular effective Start Date and End Date that was agreed.

As you made yourself available and ready to commence work on the effective Start Date specified you need to find out what's gone wrong and why the agency wants to move it with no compensation to yourco.

Some agencies will put a clause to the effect that Start Dates may change due to rules/regs, clearances, etc BUT you would have known that before travelling, yes?

I would suggest its not really on for a telephone call to arbitrarily change the Terms and Conditions that you agreed to but you're always going to be pointed towards the contract you agreed to. How watertight is that Start Date that you can bill from.

Did you elect to opt out? Did you engage a contract review that might have highlighted typical commercial issues with your contract?

You need professional help. That's going to cost money though. Good luck.

Problem is we don't work we don't get paid. The client can advise that there is no work so we can't bill, an example is xmas on sites that have a shut down. Although this is the start then I would think that technicality still exists, so if he isn't ready for you and has no work there is nothing to bill. I can't see you getting any compensation related to lost revenue at all. There was no work to be done so technically haven't lost any revenue.

I can't see why the promised to pay you a week early either. You have no signed timesheets and have done no work so they won't be getting payment from the client. Check to see if there is a clause in your contract about you not getting paid if the client hasn't paid the agency. (Arguably) you get a cut of the agents pay so there will be no pay if no work has been done.

I am not sure where you stand with this but as a contractor we do shoulder an element of risk that this appears to have fallen in to. You could argue it is your responsibility to be available for work. If this was just an hour commute you would swallow it, it is the fact airfares and hotels are being paid for. It is your responsibility to turn up on site so you can see their point.

I would certainly follow up the agreements from the agent to pay you, don't hold your breath, but they shouldn't be dicking you around like that. I don't believe for one minute they would or could honour it so I would speak to them again to understand what they are really doing about it. Don't expect your agency to be giving you credit though....

[SueEllen]

Apart from the contract what did you get in writing?
Did you record any phone calls?

If you didn't at least email the agency with what you both agreed then there is no proof and you would have a hard time proving in court that you didn't breach the contract.

[TheFaQQer]

After arriving at my hotel, I receive a call from the agency stating that the start date had been moved to the following week.

That's always been my concern with working away - you make a booking and then the project gets cancelled or delayed. In the past, I've always tried to include a clause in the contract to cover those out of pocket expenses, but most agencies refuse.

Because of money lost from that week of not working, I had informed the agency that I could not afford another 2 full weeks of flights and accommodation, so I would start only if they could pay me a week early to cover costs. They agreed to this.

So, they agreed to pay you for not working? That doesn't sound very IR35-friendly to me, to be honest. You should be paid for the work that you do, and only for the work that you do. Who from the agency said this? What proof have you got that they said this?

Also, if you are running your business to the state where if you are out of contract for a week then you run out of money, then I would have to question whether this is an appropriate career for you.

Two weeks on, and no payment whatsoever from the agency. They state that a payment was made into my account, but still to this day there is nothing at all.

Who states? Ask them to provide details of who, when and how much they paid. Shouldn't be too hard for them to prove it, if it ever happened, which I doubt.

As there was no more funds for me to travel back out to the end company, the agency are now saying that I have breached the contract, and are refusing to give me any payment whatsoever (which actually confirms that no payment was actually given as promised)

I don't think it's an unreasonable assumption for a business to make that if you agree a contract, that you will be able to get there to fulfil that contract. I refer you back to my earlier point - if not billing £2k means that you cannot afford to get there, then how do you plan to live when you are out of contract for longer than a week?

Now I am nearly £2,000 out of pocket.

Silver lining - you took a risk as a business and lost. Helps your IR35 defence.

Any advice on this would be much appreciated.

Speak to a lawyer rather than a bunch of people you don't know on a forum. Assuming you are a PCG member, ring their legal helpline and see what they recommend.

[SueEllen]

That's always been my concern with working away - you make a booking and then the project gets cancelled or delayed. In the past, I've always tried to include a clause in the contract to cover those out of pocket expenses, but most agencies refuse.

Always give the PM or whoever your mobile number and email and make it clear they can contact you directly.

Once you have accepted the contract and they know who you are they won't go behind the agencies back.

I was on a project and there was a delay due to paperwork getting another contractor. I told the PM that he must phone or email the contractor directly and tell him what the delay was otherwise we would lose him.

[northernladuk]

If you are going to speak to someone legal about it you have to be very clear in your terminology. When you say you are 2K out of pocket... Is that 2k you spent on flights and hotels or are you including the money you didn't earn. You are not out of pocket if you didn't earn it.

[SueEllen]

If you are going to speak to someone legal about it you have to be very clear in your terminology. When you say you are 2K out of pocket... Is that 2k you spent on flights and hotels or are you including the money you didn't earn. You are not out of pocket if you didn't earn it.

WHS

I doubt flights to Europe plus a week's accommodation even in an expensive country would cost you 2K.

[Wanderer]

As there was no more funds for me to travel back out to the end company, the agency are now saying that I have breached the contract, and are refusing to give me any payment whatsoever (which actually confirms that no payment was actually given as promised)

Ahh, did you actually do any work for the client company? Or did you run out of money after two weeks and then quit?

[SeekingIT]

Lesson learnt for next time!!!!

Thanks for posting, this is a lesson for all of us, overseas role, let Agency state in writing, when we should be expected to be onsite
and what compensation (if any) will be paid for expenses and delays.
As others have said, this is part of the risk we undertake on doing contracting,
when I travel, I always find out what the clients travel and expense policy is before I set off.

Please keep us informed of the outcome of this Saga.