Restriction clause in the contract

[Viny]

Hi all,

I worked via an agency with a client for more than 4 year as a contractor. My contract was ended on 27th of march 2020. The client changed their business policy for contractors and now only hiring contractors through preferred suppliers , my agency was not in the list of preferred suppliers and hence the client said they wont engage with that agency. I got a new role with the same client via their preferred supplier ( starting from 30th march 2020).

I have my two months invoices due with my previous agency and the confirmed on 31st march that I will get the payment for both invoices on 24th April 2020. Instead of the payment I received an email on 27th April saying you have breached the contract as you have joined the client directly and that is why its a compliance issue and we are stopping the invoice payment until this is addressed. I am trying to call them and contact them via email to discuss and understand but I am not getting any response only an email came saying we will come back when compliance team will provide an update.

I am struggling with the finances as the my money is blocked by the agency. Can the expert on this forum help me to suggest the way out to get my money from the agency.

Thanks,
Viny

[NotAllThere]

The agency are not acting correctly withholding payment due to an apparent contract breach. That is a separate issue and they should be pursuing it separately.

You should immediately start dunning. Send the invoices with a reminder that these are now overdue, and requesting payment within seven days. If after seven days they're unpaid, send another reminded and give another seven days. If they're still unpaid send a final reminder, with a note that you will begin legal proceedings if the invoice isn't not paid immediately. Send the final reminder as a registered letter. At each reminder add statutory interest and an administration fee as detailed at The Late Payment of Commercial Debts Regulations 2013 - Pay On Time

When that's unpaid start legal proceedings. Depending on the amount you might be able to go through the small claims court.

Alternatively, hand the debt over to the a debt collections agency.

There is no quick way of getting the money, so next time make sure that you won't run into financial difficulties if you don't get paid for a couple of months.

The agency probably don't have a leg to stand on regarding breach of contract as they'd have to demonstrate they'd suffered loss, which they haven't as they were not on the PSL. You didn't sack them, the client did.

Do not get dragged into any argument or discussion with the agency. That will only muddy the waters.

[Old Greg]

What NAT said. I'm in a similar position, trying to enforce a debt through the courts - different jurisdiction and my court date put back by Covid-19 . They have the money and no leg to stand on. It's slow.

Google overdue invoice statement of account. Then send a statement of account letter including how overdue it is. Email it and send a copy registered post giving them 7 days to pay. In the meantime, talk to Safe Collections to get an honest view of whether debt collection is a better way forward than legal action.

If you go legal, 9 days after your first letter, send a further statement of account, more formally worded with polite advice that you will take legal action if no response within 7 days. 9 days after that, send a letter before action (again, Google it). Then, you need to take legal action. Personally, I would go the Safe Collections route, but it just wasn't going to be effective in my case (as SC were decent enough to advise me).

Short term, you need to look at a credit card or borrow from family (or government backed Covid 19 loan?).

[northernladuk]

How can you be having money problems if you've been 4 years straight?

[Old Greg]

How can you be having money problems if you've been 4 years straight?

Glad to see you're your usual Friday afternoon helpful...

[Lance]

do what the others say. It's just a process you need to follow. And don't get emotional.

As for financial assistance you can delay your VAT payments at the moment. And also apply for a government backed loan.
If anything, now is a good time to be in this situation as there is more help than normal...

As NLUK says though, how on earth can you be 4 years into a contract and not have enough money saved up to last 2 months. That is madness. What if you get ill? Or just get dropped by the client?

[northernladuk]

Glad to see you're your usual Friday afternoon helpful...

I can't be arsed with restriction and handcuff clause questions. They've been done so often. They can find all the information they need by typing

handcuff site:contractoruk.com/forums

I'd thought I'd apply a bit of out of the box thinking and address why we just missed the worst period for contracting ever and then a pandemic hit and the OP can't last a month without money.

A good lesson don't you think?

[Old Greg]

I can't be arsed with restriction and handcuff clause questions. blah blah blah

Yet here you are...

[Old Greg]

do what the others say. It's just a process you need to follow. And don't get emotional.

I treat is as a little project. It's an easy way to get 10k - the odd email to the solicitor. And statutory late payment interest is 8% p.a. (in Ireland at least).

[northernladuk]

Yet here you are...

I'm focusing on the second lesson of this thread. Warchest and money management.