Recruitment agent non payment

[pagrate]

I was working in a contract via a recruitment agency where both I and the client were happy and had extended the contract a few times.
Before starting the contract the recruitment agency had agreed to 7 day payment terms and I had written that in the contract.

I was close to the end of the contract and had been sent another contract extension by the recruiter which I was keen to extend but then I noticed that a payment that was due wasn't paid.
I queried this with the recruiter and I started hearing excuses like they were currently on holiday and I would be paid in the end of the month payroll etc.

I reminded them that the contract stated 7 day payment terms and that they were late but they kept insisting I would be paid at the end of the month.
In the last day of the contract the extension still hadn't been accepted by me and I told the recruiter I couldn't accept the extension unless I was paid.

In a desperate attempt to get it all sorted out I told the client I was going to the recruiters office to try and sort everything out.
I found that the recruiter was no longer at the address and had left without paying bills.

I informed the client and told them I wouldn't be extending which they were sad about because they were happy with me and wanted me to stay, but completely understood my situation regarding the recruiter.
The recruiter was unhappy they had been found out and that I didn't extend and started making up stories that I had made bad comments about them and annoyed that they lost business with the client.

I got a lawyer involved and we started winding up proceedings against the company.
The recruiter tried various stalling tactics to delay this and eventually filed for liquidation themselves.

As the date of the winding up proceedings got close the lawyer advised that the recruiter had no money left so it was very unlikely that winding up proceedings would gain me any money back, and advised it may be worth withdrawing the proceedings, which I decided to do to save me further costs.

So here is where I am at today..
The recruiter didn't go through with the liquidation and has no money left in that agency.
The same recruiter had started up another recruitment agency which is not yet fully operational but is planned to launch soon.
The recruitment agency under the old company still owes me my money.

So I am not sure how to proceed and what I can do, if anything.
I'm very annoyed if the law allows them just to set up another company after running the other one like that and where have they got the money to start a new company if they didn't have it in the old company?

If I say anything bad about the new company then it will probably mean I get sued.
It looks like a no win situation no matter what I do.

I am posting on here to ask if anyone has any advice on what I might be able to do, any help is appreciated.

Thanks
Paul

[Invisiblehand]

Who was the firm in question/the new one they've founded?

[northernladuk]

IPSE+ Business interruption cover should pay a couple.of grand out to cover some of the losses.

[northernladyuk]

From a business perspective, it's a shame you didn't try to contract directly with the end client (or did you?)

From a revenge perspective, is there any evidence that the old company was trading when insolvent? You may be able to cause some inconvenience to the Director's by making a complaint to the Insolvency Service of Serious Misconduct. http://www.gov.uk/government/publica...tor-misconduct

[pagrate]

Who was the firm in question/the new one they've founded?

Well I have deliberately avoided posting the names of the
companies in case that can be seen as defamatory in anyway.

[eek]

Give it up - life is too short...

If asked about the agency point out that the director has an interesting history of previous agencies and leave it at that...

[pagrate]

From a business perspective, it's a shame you didn't try to contract directly with the end client (or did you?)

I discussed it with the client who while keen to keep me didn't want to get involved in the legal dispute.

I have since found a great contract anyway so not interested in returning there now.

[pagrate]

I forgot to mention the client paid the recruiter for my services but didn't pass that on to me.

[Lance]

The recruitment agency under the old company still owes me my money.

Unfortunately as they're bust you aren't likely to get anything.

So I am not sure how to proceed and what I can do, if anything.

Not a lot you can do about it.

I'm very annoyed if the law allows them just to set up another company after running the other one like that and where have they got the money to start a new company if they didn't have it in the old company?

They may well have enough capital to start a new company. That's more than likely a personal investment.
The law can prevent them running another company if they are struck off. They have to have broken some laws though.

If I say anything bad about the new company then it will probably mean I get sued.

The new company has done nothing so that's fair and reasonable.

As you're unlikely to get paid the question is whether you want vengeance on the individual. You could potentially try and sue them directly if you have evidence that they've committed fraudulent acts. But to be honest that's a job for the police.

What you'd be better off doing is trying to go direct to the client. The agent cannot stop you as the company you had a contract with no longer exists so they cannot enforce any non-compete/poaching clauses.

Sorry. But I'd forget it and move on. Life's too short. If you have IPSE cover you may get some money back that way.

[SueEllen]

All you can do now is tell people who the old agency is by name, state they didn't pay your invoices and tell people the people running it have started a new agency but don't mention the name. Anyone with sense will look them up.

BTW going for the nuclear option e.g. winding up orders rarely works you need to keep the company running to get your money. In future use a debt collector and maybe put a charge against them so when people credit check them realise they are a poor risk.