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Agency looking doomed....

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    #11
    Originally posted by northernladuk View Post
    Doesn't IPSE cover some losses if your agency goes bump?

    I have had plus cover for over 10 years now...so I think I am
    Last edited by Sausage Surprise; 24 March 2015, 11:08.
    Blood in your poo

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      #12
      Originally posted by garethevans1986 View Post
      Did any of you do a credit check on the agency before starting the contract?

      I did on my current one and found they had a very poor credit rating "cash transactions only" which was quite interesting.

      GE
      Been with them for 18 months - some here longer but they changed their name recently and lost a few of their main agents who went to form their own agencies.
      Blood in your poo

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        #13
        Originally posted by DaveB View Post
        If it's really imminent and you can handle the intrrruption in cash flow then the best way to deal with it is to retain signed timesheets, but not submit invoices for them. Once current agency goes under you can sign up with a new one, and submit invoices against those timesheets with cooperation from Client Co. if needed.

        This does assume Client Co. will cooperate to smooth things over, as it may mean they get a big bill up front from the new agency to cover the outstanding timesheets.

        Of course the very fact that 5 of you stop submitting invoices will mean that the agency can't invoice client co. and that could precipitate them going under when they may have survived.

        I'm not sure that is the case with the timesheets. If the agency do go under, won't the administrators come after tha unpaid bills? You were working for the agency at that time and not the new one. Sounds like fraud to me, but I could be wrong.
        "Israel, Palestine, Cats." He Said
        "See?"

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          #14
          Originally posted by Project Monkey View Post
          If the agency doesn't pay then they are in breach, the contract is broken and you can ignore the handcuff clause.

          Don't see how you could avoid this just on hearsay though.
          I'm assuming that SS means that if he bails he won't be able to re-contract through a different agency.

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            #15
            Originally posted by garethevans1986 View Post
            Did any of you do a credit check on the agency before starting the contract?

            I did on my current one and found they had a very poor credit rating "cash transactions only" which was quite interesting.

            GE
            Credit check only shows the agency's current status.

            To be honest if an agency doesn't pay me within 14 days of invoicing I automatically think they have issues.

            Direct clients I view differently.
            "You’re just a bad memory who doesn’t know when to go away" JR

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              #16
              Originally posted by uk contractor View Post
              <snip>

              If the end client pays the oustanding invoices in full its dead money if the agency is going bust anyway they will be in deep financial trouble probably for months now forget what contracts say as the agency creditors will ignore those you will be lucky to get anything if they go under. Ask the end client co if they would pay your salaries direct to your accountants & just pay the agency their fee I am not going to say why but you can use your imagination on this one

              <snip>
              Salaries?

              Regardless, that isn't going to work. The contract is client -> agency, NOT client -> your accountant.

              What would the client do if/when the agency chases them for their money? "We gave it to UKC's accountant, honest guvnor!"
              Contracting: more of the money, less of the sh1t

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                #17
                Sadly it does happen. I do find it unusual that the client would inform you about a cash flow issue.

                Ultimately, until they fail to pay you they have not breached the contract so your options are at this point limited to waiting for that to happen or moving on.

                Good luck. Hope the worst doesn't happen here.
                https://uk.linkedin.com/in/andyhallett

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                  #18
                  Originally posted by Andy Hallett View Post
                  Sadly it does happen. I do find it unusual that the client would inform you about a cash flow issue.

                  Ultimately, until they fail to pay you they have not breached the contract so your options are at this point limited to waiting for that to happen or moving on.

                  Good luck. Hope the worst doesn't happen here.

                  This is what I've concluded too. Nothing to do but sit it out and hope I don't need to invoke my IPSE insurance.
                  Blood in your poo

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                    #19
                    Originally posted by kingcook View Post
                    Salaries?

                    Regardless, that isn't going to work. The contract is client -> agency, NOT client -> your accountant.

                    What would the client do if/when the agency chases them for their money? "We gave it to UKC's accountant, honest guvnor!"
                    If the agency are going bust they are unlikely to chase the money somehow! The end client will lose out as 5 contractors walk away they need to hire replacements ASAP!!


                    Contracts are almost worthless once the agency goes under who is going to chase them for payment it will take months for creditors to take legal action if its not a large agency they usually vanish & the directors turn invisible suddenly to avoid the blowback !!


                    At the end of the day the point I was trying to make is paying 5 large salaries to a failing agency means the funds are unlikely to filter 100% through to the contractors are they?

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                      #20
                      Interesting point raised about NOT invoicing the agency, so that they never get the money from the client, but as pointed out this will likely exacerbate their problems.

                      I agree you should - collectively if at all possible - approach the agency and state that you have concerns over their ability to pay you. When it's only rumours this is a bit tricky, and knowing if you can trust what they say is also tricky.

                      You could demand a switch to billing weekly but switching agency based on a rumour, if they have paid you to date, wouldn't be contractually OK.
                      Originally posted by MaryPoppins
                      I'd still not breastfeed a nazi
                      Originally posted by vetran
                      Urine is quite nourishing

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