IR35-friendly company suggesting legal action for non-exclusive working...

[Mordac]

Is there an agency involved? Either way, no contract (except perhaps a permie contract) can dictate who else you work for. Sounds like an HR monkey needs a little education in business contract law, perhaps?

[shaftedcontractor]

If I were you'd I'll tell them how much interest you are going to start charging them on what they owe you and get your solicitor to write a strongly worded letter stating the fact.

Hell, better still send them a link to thread and we can laugh at them...if that doesnt make a point they deserve to get shafted in the courts.

The interest is an easy one, their contract does have a provision/clause for me charging them interest on late payments.

If I don't get a decent resolution then I may well invite them to post on here.

[shaftedcontractor]

Is there an agency involved? Either way, no contract (except perhaps a permie contract) can dictate who else you work for. Sounds like an HR monkey needs a little education in business contract law, perhaps?

Nope, no agency, two small Ltd companies (me and them) only.

I'm getting the same opinion from everyone that they can't dictate what another Limited company can do (and they were the ones that stated it was to be a B2B contract basis rather than as a permie).

[ASB]

Nope, no agency, two small Ltd companies (me and them) only.

I'm getting the same opinion from everyone that they can't dictate what another Limited company can do (and they were the ones that stated it was to be a B2B contract basis rather than as a permie).

They can dictate what another limited company can do - but only as stipulated by the contract.

You say there was no exclusivity clause, however check the contract carefully about any non competition clauses - they are more common. However, if the other work your company undertook was not in competition with them - or for their competitors then you are probably in the clear.

I don't know if the PCG legal helpline will write a letter on your behalf (although I suspect not). If you have not got resolution quickly then get a solcitor to do it for you. Unfortunately this is just one of the costs you generally need to take on the chin, but an imaginitive solicitor might be able to find ways of counter claiming.

[shaftedcontractor]

They can dictate what another limited company can do - but only as stipulated by the contract.

You say there was no exclusivity clause, however check the contract carefully about any non competition clauses - they are more common. However, if the other work your company undertook was not in competition with them - or for their competitors then you are probably in the clear.

I just spoke to the PCG Legal Helpline and they say that there's nothing in the contract to restrict my trade in this manner and any email conversations prior to the signing of the contract are generally superceded by the contract and ther terms are expected to be stated in the contract if they are to be binding or are to be ignored if not mentioned.

Anyway, I'm still awaiting their response.

[Ardesco]

Have they said why they are getting all upset about this?


If you did all the work on time and it does what it was supposed to do and they are hapy with it what is thier problem? Have they got financial difficulties and are using this as an excuse to hold off paying you?

[shaftedcontractor]

Have they said why they are getting all upset about this?


If you did all the work on time and it does what it was supposed to do and they are hapy with it what is thier problem? Have they got financial difficulties and are using this as an excuse to hold off paying you?

That's my thought.....