Contract Disengagement Dispute

[buffdaddy]

Hi All,

I have just finished my first contract at the end of Jan 07. However I am having trouble getting paid for my last month that I work (very hard I might add) on that contract.

The reason is, that the end client wanted my contract extended for 4 weeks, however in that time I got another bigger contract and I took it. I did not sign to the extension, nor did I explicitly stated that I will take the extension.

Now they (the middlemen), have asked me to sign to these two clauses below

1. Take up employment or any other nature of assignment with any of <middlemen/> clients, either on a temporary or permanent basis for a period of two (2) years from the date of the signed agreement, without the prior permission and agreement of <middlemen/>.

2. Inflict any commercial damage (knowingly or otherwise) in terms of loss of revenues, goodwill or other corporate standing between <middlemen/> and its clients where you have been placed whilst under the life tenure of the NDA.

I guess what I want is some advise in this matter? Is this legal? How do I get my money?

Any help would be much appreciated.

regards,

buff

[oraclesmith]

If you didn't opt out of the EB regs prior to being introduced to the client, then that first clause is illegal and unenforceable, in my humble opinion. See my recent thread on EB and no opt out. And see EB regs, regulation 6. Wave it in front of them and see the response. They also can't withold payment for work done - see EB regs again. If you get nothing, then go see a specialist solicitor.

If you opted out of the EB regs, then it's a B2B matter and you'll probably have to decide whether you want to work for the client within the next 2 years or get paid your 4 weeks. The clauses are quite punitive and it's clear they think they've got you over a barrel by witholding payment. Personally I wouldn't sign unless I never want to work for said client. A months pay is quite a bit, so I'd invoice them and eventually take 'em down a debtors route - dunning letters, legal letter, small claims court.

[tim123]

You're bound not to do the second one under common law. It makes no difference whether you sign this clause or not.

HTH

tim

[buffdaddy]

Hi Guys,

thanks for the reply,

the company in question here is not a Recruitment agency, they specialise in taking IT projects to india, and for smaller projects they have permanent staff in the UK. But when a project comes along which they cannot staff (due to resource limitations) and its too small to offshore to India, they get a contractor in (i.e me).

do the EB regulations still apply? Can they still do what they are doing to me?

how should i get my money back.

cheers

[Cowboy Bob]

how should i get my money back.

1) Send an invoice
2) If not paid within 30 days, send notice that interest will be added and that if this is not paid you will issue a winding up order
3) After 7 further days, get a solicitor to write them a letter that if you don't get paid the invoice value plus interest you will issue a winding up order within 7 days
4) 7 days later issue winding up order and have the company closed down (it won't get this far, trust me)

[buffdaddy]

The invoice first went out on 2nd Feb, so it will be 30 days on monday.

I have sent a copy invoice via email and also have put references to the DTI document http://www.dti.gov.uk/files/file24248.pdf

Now I await for their response.

So if the response is not very good I will look into the solicitor route. How much do you this solicitor will cost with this regard?

can I pass the legal fees onto the company involved here?

[TheFaQQer]

If memory serves from my Contract Law In A Nutshell book (university reading), then there are two points to consider.

1 - you cannot introduce new terms into the contract after it has been signed, unless both parties agreed.

2 - attempts by one party to force another to accept new terms cannot be on the basis of a abuse of a dominant position.

Sounds to me like if you accept the conditions, then they would not be valid anyway.

[buffdaddy]

thanks for the response all.


after sending an email with stronger words and the DTI EB regulations that protect me, I have managed to one of the two invoices paid (the smaller one of 7 days work). I still have to wring out the 15 days (3 weeks) invoice out of them.

Man the hassle...i hope all the contract closures aren't this stressful.


thanks for all the comments and help. I will keep you guys posted if the second invoice has more trouble coming through.


cheers,

[DimPrawn]

Welcome to contracting, being in business on your own account etc. Now you can see why the IR35 "you are just disguised permies" is so

[ASB]

It's just a thought but according to one of your earlier posts the invoice wasn't actually due until yesterday anyway. I just wonder if they might have been more amenable if you'd waited until they were actually late before hassling them?