Agency in administration - Coal IT

**SueEllen** · 18 February 2017, 21:14

We would need to lobby MPs for that and base our arguments in those on minimum wage who get screwed over as they think we can care for ourselves.

The prime example is the people who did security in the Olympics and the agency disappeared.

**vwdan** · 18 February 2017, 21:34

Wow, there's a shock - did 7 months with them and they were really good to work with. Even did a rapid reference turnaround for me a couple of weeks ago.

**Rabotnik** · 18 February 2017, 22:29

As I referred to in another thread, I was a victim of theirs

Just started a gig in January and heard there were recently problems with the other contractors getting paid and then the whole thing blew up in February and we got shifted on to another agency. Then we found out they went into administration. I'm owed about 15K, and others more. Unfortunately I didn't have business continuity insurance at the time.

I'm certainly no expert in the matter, but I checked companieshouse and there were a few Coal IT variations in the past which got dissolved, so it seems dodgy as hell. We even tried to get our client to pay our January fees directly to our LTD's since they hadn't paid Coal IT yet, but they refused. We were gutted knowing our money was being thrown into a black hole.

We got screwed over by our own client really, they dropped Coal IT before making sure we got paid, so there was no longer any leverage against them for them to pay us. They should have first threatened them with leaving to make sure they paid us before switching.

To make it worse, one of the Coal IT directors and our pimp was telling my colleagues all kinds of lies like blaming it on some 3rd party invoice discounter, and promising them every Friday that they would be paid but they never were. Even a week before they went into administration he sent us an email saying we would be paid that week.

I had to raise an invoice for the first few days of February to them after they went into administration. Was a horrible feeling sending them a timesheet I knew they would get money from the client for, but which I would never receive

**SueEllen** · 18 February 2017, 22:53

Originally posted by Rabotnik View Post

As I referred to in another thread, I was a victim of theirs

Just started a gig in January and heard there were recently problems with the other contractors getting paid and then the whole thing blew up in February and we got shifted on to another agency. Then we found out they went into administration. I'm owed about 15K, and others more. Unfortunately I didn't have business continuity insurance at the time.

I'm certainly no expert in the matter, but I checked companieshouse and there were a few Coal IT variations in the past which got dissolved, so it seems dodgy as hell. We even tried to get our client to pay our January fees directly to our LTD's since they hadn't paid Coal IT yet, but they refused. We were gutted knowing our money was being thrown into a black hole.

Unfortunately your client is legally obliged to pay the administrators if they decide to pay.

**Rabotnik** · 18 February 2017, 22:59

Originally posted by SueEllen View Post

Unfortunately your client is legally obliged to pay the administrators if they decide to pay.

Yeah this was the defence they went with, that they legally had to pay it, but we tried to get them to use common sense that what they really owed them was their 10% (or whatever) commission, so we were begging them to pay them their fees separately and pay our money directly to us. I spoke to someone at Safe Collections (very helpful guy) and he said that technically they had to pay the whole amount but if they really wanted to they could dig their heels in and side with us. Unfortunately HR didn't want to hear about it and kept spouting some rubbish about us being caught by IR35 if they paid it to our companies

**malvolio** · 18 February 2017, 23:29

Originally posted by Rabotnik View Post

Yeah this was the defence they went with, that they legally had to pay it, but we tried to get them to use common sense that what they really owed them was their 10% (or whatever) commission, so we were begging them to pay them their fees separately and pay our money directly to us. I spoke to someone at Safe Collections (very helpful guy) and he said that technically they had to pay the whole amount but if they really wanted to they could dig their heels in and side with us. Unfortunately HR didn't want to hear about it and kept spouting some rubbish about us being caught by IR35 if they paid it to our companies

Scary that so many Human Remains teams, who are supposed to be up to speed on employment law, have no idea about a crucial piece of their business...

But just checking - are you an IPSE+ member? If so, you have some cover against agency defaults...

**SlipTheJab** · 19 February 2017, 00:01

Originally posted by malvolio View Post

Scary that so many Human Remains teams, who are supposed to be up to speed on employment law, have no idea about a crucial piece of their business...

But just checking - are you an IPSE+ member? If so, you have some cover against agency defaults...

+1 Along with the IR35 investigation protection, this is one of the main reasons I'm with them, its a no brainer.

**teapot418** · 19 February 2017, 07:20

Originally posted by malvolio View Post

Scary that so many Human Remains teams, who are supposed to be up to speed on employment law, have no idea about a crucial piece of their business...

But just checking - are you an IPSE+ member? If so, you have some cover against agency defaults...

See OP's thread in general - allowed membership to lapse, and rejoined recently, so within the 60 days 'no cover' period.

http://forums.contractoruk.com/gener...ed-nluk-4.html

OP also missed out on jury cover by a day.

Possibly the worst two hundred quid ever saved.

**Tank** · 19 February 2017, 07:39

Had payment issues with Coal in December (mentioned in the Agencies to Avoid thread).

Luckily (for me) the client I'm working at dumped them pronto.

Agency in administration - Coal IT