Who and how to sue?

[hraban]

I have been working for a week in a terrible shady company that "froze" my contract indefinitely with no notice because they did not know what they wanted in the first place. The work is done through my limited company.

I had a contract with them through the agency, and the notice period specified in that contract is one day.

When the contract was discontinued, I submitted timesheets for 3 days plus one day notice period.
They never signed them, they ignore my phone calls, agencies, all emails. If I or agency use another phone number they do not know, obviously the pick up the phone but then they claim HR manager is either sick or on an annual leave. Because there is no timesheet, the agency refuses to pay my invoice.

From what I understand, my business is done with agency only, and I have no legal right to demand anything from the end client. I did call to the agency a number of times and reminded them Conduct of Employment Agencies and Employment Businesses Regulations 2003, regulation 12, prohibits the agency from withholding payment because a timesheet is not signed. Given that I never opted out from it, it is not my responsibility to chase the client and suffer the financial loss because they can not recover the monies.

After 3 weeks of pointless phone calls, I am considering to submit either an Employment Tribunal claim or use Small Money Claims. What would be better in this case and do I understand right that I need to sue the agency, not the client? Can you recommend me any more peaceful ways to recover the money owed? The agency says without timesheets there is no way for them to know I actually worked those days, do I even need to prove it somehow, and if yes, then how?

[BrilloPad]

Is it really worth suing for 4 days money? Why not move on?

[northernladuk]

Have a look at the process and costs involved. Then you will see why it very rarely happens for cases like this.

Write to them.. A lot. Then maybe pay for your solicitor to write to them.

As soon as you threaten to sue them you've lost because those in the know will know you won't.

[Safe Collections]

I have been working for a week in a terrible shady company that "froze" my contract indefinitely with no notice because they did not know what they wanted in the first place. The work is done through my limited company.

I had a contract with them through the agency, and the notice period specified in that contract is one day.

When the contract was discontinued, I submitted timesheets for 3 days plus one day notice period.
They never signed them, they ignore my phone calls, agencies, all emails. If I or agency use another phone number they do not know, obviously the pick up the phone but then they claim HR manager is either sick or on an annual leave. Because there is no timesheet, the agency refuses to pay my invoice.

From what I understand, my business is done with agency only, and I have no legal right to demand anything from the end client. I did call to the agency a number of times and reminded them Conduct of Employment Agencies and Employment Businesses Regulations 2003, regulation 12, prohibits the agency from withholding payment because a timesheet is not signed. Given that I never opted out from it, it is not my responsibility to chase the client and suffer the financial loss because they can not recover the monies.

After 3 weeks of pointless phone calls, I am considering to submit either an Employment Tribunal claim or use Small Money Claims. What would be better in this case and do I understand right that I need to sue the agency, not the client? Can you recommend me any more peaceful ways to recover the money owed? The agency says without timesheets there is no way for them to know I actually worked those days, do I even need to prove it somehow, and if yes, then how?

Your limited company has a contract with the agency, the agency in turn have a contract with the end client.

If the contractual chain is as above then you are likely correct when you state you have no legal claim in regard to the end client, so you will need to pursue the agency for the balance owed.

As a limited company contractor you would not be eligible for an employment tribunal, as you are an employee of your limited company. So ultimately if you can not get paid by the agency you would need to issue legal proceedings in the County Court or choose another method of recovery.

If you choose to issue proceedings to recover the balance you need to scrutinise your contract very carefully for any awkward clauses and make sure you understand your status under the relevant regulations.

You may also wish to consider sourcing a credit report on the agency before you issue legal proceedings to ensure they have the means to pay any eventual award.

Hope that helps.

[hraban]

BrilloPad,
I was lucky it has been 4 days only, but their next contractor (if they have one) may be less fortunate and end up being underpaid for considerably longer. Is is not a lot of money, but turning the other cheek does not really work in business. After couple of contractors like me and the agency will start thinking in terms of "It is just couple of days, why bother fulfilling our responsibilities'.

So for the sake of justice, I would still like to recover the money, let it be peacefully or with some legal help.

[saptastic]

I was just going to say - get in touch below with safe collections who I have used.
They will take a slice of the pie if they recover money.
But they can usually advise if the claim has any qualified 'legal' merit in the first instance.

Protecting Payments with Safe Collections - Debt Recovery and Collection :: Contractor UK

[hraban]

Thank you very much for the responses. I have never had unpaid invoices in the past, so I apologise for my newbie-ness here. And it is good to know that employment tribunal does not cover contractors

28northernladuk did not sound optimistic at all, what is the average success rate in such cases?

I will use Safe Collections, this is definitely less costly and easier option that small claims online. I knew I'd find valuable advice on this forum

[BrilloPad]

BrilloPad,
I was lucky it has been 4 days only, but their next contractor (if they have one) may be less fortunate and end up being underpaid for considerably longer. Is is not a lot of money, but turning the other cheek does not really work in business. After couple of contractors like me and the agency will start thinking in terms of "It is just couple of days, why bother fulfilling our responsibilities'.

So for the sake of justice, I would still like to recover the money, let it be peacefully or with some legal help.

Understood. But contractors are not a union. Its everyone for themselves. You will waste money and time and get nowhere. Please don't shoot the messenger. I meant that as honesty, not an insult.

Personally I would spend the saved time and money on getting a new gig, re-training, or maybe even helping out a charity.

May the Lord grant us the wisdom to change what we can and ignore what we cannot.

Good luck though!

[northernladuk]

28northernladuk did not sound optimistic at all, what is the average success rate in such cases?

My point was to 'sue' someone is a final resort and most people that use the term 'sue' don't know what the steps are. If I had an argument with someone and they threatened to sue me I'd walk off laughing. If they write me a load of letters, some recorded and quote proper legislation I'll be worried. Very few business disputes are solved with someone being sued.

Safecollections can probably give you some interesting figures I am sure.

[SueEllen]

NLUK is right.

Going to court or using other means of debt recovery is the last resort.

You need to talk to the individual, send them an invoice and wait to be paid before you even think about legal action.

This link will be useful. linky

If you aren't reasonable and just take them to court your case will just be thrown out.