Client gone bust =- should I still get paid?

[Pondlife]

Originally Posted by VectraMan

Yes but he's talking about the notice period. It falls into that slightly grey area of whether you should be paid for work you haven't done (and so don't have timesheets for) because of the notice period.

I would have thought, esp if claiming to be outside IR35, that the MOO clause would dictate that the client is not obliged to provide you any workfor those 2 weeks and therefore you have nothing to bill for.

Notice period is, IMHO, only there to ensure that the contractor doesn't down tools halfway through.

[SueEllen]

If the company is really gone bust then you should find out exactly why to see if there is any chance of them paying creditors. If it's to do with the taxman or fraud then your agencies will be way down on the list of creditors.

A member of my family years ago worked for a dodgy bank and didn't get their 4 week notice period paid.

[YHB]

Originally Posted by blacjac

You didn't have to have met them face to face.

You just had to be intorduced to them before the opt out for it to be invalid.

do you mean by just your cv being put forward for the role? or a telephone chat etc

[Beefy198]

I would check the date you signed the opt out. If you had already been given job info, interview dates or had the interview you should have a pretty good case for actually still being opted-in (and therefore, as I understand it, being paid by the agency regardless)

[vetran]

Sorry the contract is with the Agency, invoice them.

If they went bust their administrators would pursue any avenue that led to profit. If you have a contract that specifies you are paid notice then that is what is paid. If you owed money to your bank would it matter to them if your customer went bust? No!

Invoice them, pursue it reasonably don't spend too much time on it. Worst case its an IR35 pointer. Best case you get some cash.

[Inside Agent]

You may find your agency has the right to terminate if their client goes in to administration or equivalent.

If they don't you are entitled to notice. In most instances they will have to give you notice in writing, if they haven't ask for it and review against contract.

[Beefy198]

But if he legally hasn't opted out (because an opt clause was signed after being introduced) surely the contract couldn't include a termination clause if the client goes bust?

[TykeMerc]

Originally Posted by vetran

Sorry the contract is with the Agency, invoice them.

If they went bust their administrators would pursue any avenue that led to profit. If you have a contract that specifies you are paid notice then that is what is paid. If you owed money to your bank would it matter to them if your customer went bust? No!

Invoice them, pursue it reasonably don't spend too much time on it. Worst case its an IR35 pointer. Best case you get some cash.

Valid point that, the Agent isn't bust, the fact that their customer went boom isn't your problem, while they're still afloat you can purse them.

[original PM]

assuming you are ltd company then the agency are in breach of contract for not paying the 2 week notice.

it is pretty black and white for me - bill them and chase it through courts.

as others have said if the agencies end client goes bust it is nothing to do with you - you have no contract with them.

[Sockpuppet]

Originally Posted by original PM

assuming you are ltd company then the agency are in breach of contract for not paying the 2 week notice.

it is pretty black and white for me - bill them and chase it through courts.

as others have said if the agencies end client goes bust it is nothing to do with you - you have no contract with them.

No. Depends on the contract.

If your contract states you get paid regardless then it fails IR35 but you get paid.

However if your contract is "normal" (well to me) then it will state that notice period is 2 weeks but you are only paid for work done, no obligation to find work etc.

Your contract notice period will be 2 weeks. Nothing saying they have to ask you to do any work in those 2 weeks.

Stop thinking about notice periods like permies - just becuase it says 2 weeks does not mean you will get paid 2 weeks.