End client gone into administration, recruiter not paying.

[northernladyuk]

I highly doubt an agency is going to fold just because of a couple of missed payments to a contractor. Bit extreme that isn't it?

If it's a small agency with a small client base, it's worth considering.

[SueEllen]

I highly doubt an agency is going to fold just because of a couple of missed payments to a contractor. Bit extreme that isn't it?

There have been a couple of posters who have come on here who are clearly with small agencies who haven't paid them. They get legal advice on how they can get their money and start the process to wind up the agency. They then get angry when the directors of the old agency start up another agency.

[TheFaQQer]

I highly doubt an agency is going to fold just because of a couple of missed payments to a contractor. Bit extreme that isn't it?

If they lose in the small claims court and then refuse to pay then you could go for a winding up order. I can't find the case reference but I'm sure that some years back Saab (maybe Volvo?) Finance faced a winding up petition because they ignored the small claims court judgement that someone took out against them.

[northernladuk]

If they lose in the small claims court and then refuse to pay then you could go for a winding up order. I can't find the case reference but I'm sure that some years back Saab (maybe Volvo?) Finance faced a winding up petition because they ignored the small claims court judgement that someone took out against them.

I'm sure they can but I can't see all this happening off the back of a contractor not getting paid. Lot's of if's and but's leading to something that is possible. I just think it's highly unlikely. That said, without any further info from the OP we will never know.

[BrilloPad]

If they lose in the small claims court and then refuse to pay then you could go for a winding up order. I can't find the case reference but I'm sure that some years back Saab (maybe Volvo?) Finance faced a winding up petition because they ignored the small claims court judgement that someone took out against them.

Abbey National did about 20 years ago after not paying a contractor.

[Safe Collections]

I'm not a lawyer, but that reads to me that if the client becomes insolvent, the agency can end your contract without notice, and without having to pay you any compensation or notice period for the immediate termination. It does not mean that they don't have to pay you for work already invoiced or work you've done (but not yet invoiced) up until the date the agency notified you of termination. Possibly (and this is where the opt out/opt in may be relevat), they don't have to pay you for work not signed off by a timesheet.

I.e. you should invoice them for the work you did up until they said "stop", and you should chase those invoices.

That is how we would read it, but the clause would need to be considered in relation to the contract as a whole as it could be impacted by other clauses relating to timesheets or the like.

As others have said if the OP is an IPSE member give the legal advice line a call and see what they say, otherwise we would recommend having the contract reviewed prior to issuing any legal proceedings to recover the funds.