Handcuff Rule - Anyone been taken to court? Handcuff Rule - Anyone been taken to court? - Page 3
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  1. #21

    More time posting than coding


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    Quote Originally Posted by checkerman View Post
    If a court rules in the favor of the agency - and he then decides to shut down the company - how can the money be retrieved from the individual ? I'm sure I saw a post exactly on this forum where an agency/someone was owed a lot of money, they ruled in their favor, the amount wasn't paid, went back to court, agreed payment terms were setup, nothing paid, company shutdown, and the advice on this forum was to just forget about ever getting your money.
    If the court ruled in the agency's favour, then the agency would be creditor to the company and I would have thought they could have challenged the liquidation of the company.

    This is assuming the handcuff clause was in the company's name. I wouldn't put it past agency's getting contractors to sign on a personal basis.

    Did you find out why he logged onto the HMRC website?

  2. #22

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    Quote Originally Posted by checkerman View Post
    But my actual question was "I'm interested in seeing if anyone else has had this or actually gone to court ?" and "failing that is shutting down the company not an option ?
    It very rarely happens and only happens if either the agency is being a dickhead (judges call that vexatious and rarely rule in their favour) or they have a really good case (very rare). If they do have a case, then what is more likely to happen is that under the auspices of 'Without Prejudice' an arrangement is made whereby a smaller fee would be paid to the agency.


    Quote Originally Posted by checkerman View Post
    I'm just intrigued at how likely an agency will successfully win - and if they do what are the chances of them getting the money they are 'owed' ( I will report back here if it ever gets that far)

    For instance they have sent a bill for a loss of earnings of 6mnths. Well his renewal is 3mnths, so if he leaves after 3, how valid is that claim ?
    It's all about facts. The agent has to provde that the contractor has breached the clause, that the clause is fair and resonable, and that the losses suffered are correct.
    If the contract was for 3 months then getting 6 months of losses awarded is for the birds. It's a starting position for a negotiation (see first point). Also when going to court the 'without prejudice' letters aren't evidence so the full starting amount is where the claim starts. Another reason why these rarely end up in court as the starting valuie is too high. Judges are not happy about cases that should never have been brough to court. They are a last resort not a starting position.


    Quote Originally Posted by checkerman View Post
    If a court rules in the favor of the agency - and he then decides to shut down the company - how can the money be retrieved from the individual ? I'm sure I saw a post exactly on this forum where an agency/someone was owed a lot of money, they ruled in their favor, the amount wasn't paid, went back to court, agreed payment terms were setup, nothing paid, company shutdown, and the advice on this forum was to just forget about ever getting your money.
    Yep. **** all to get from a closed company. But the contractor could end with a cease and desist court order preventing them from doing further work for the client. Best to avoid it getting that far by seeking legal advice.


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  3. #23

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    The amount they were asking for seemed somewhat high, plus he was given two different figures. The invoice he was sent is actually more than what he they are now claiming for - all be it only slightly lower.

    I do know someone who was taken to court recently in a completely different line of work - they were a salesman and permanent member of staff and were moving to another company that sold similar products - a claim for money was made against him, but only a cease was granted, and he couldn't start for 6mnths at his new company.

    To clarify it wasn't HMRC, but looks like a court/small claims court claim. The screenshot showed gov.uk website. not hmrc, my bad.

    I'm glad it's not me in this position, but knowing the agency I would hate for them to win! I know a number of contractors that have switched from them to another agency when they shouldn't have done. Luckily I dodged them at the last minute and went with another more reputable agency before signing with them. At the time I didn't know what they were like but went with the agency that was paying almost 100pd more....It was only after I started and met some contractors doing the same role, getting paid far less, and having to wait over two months to get their money. But hey they signed the contract.....

    Thanks everyone, its great to get some feedback, I will let you know what happens.

    checkerman

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