Client threatening to withold money

[Kevin1908]

I have been working on a contract in an EU capitol. The job was full time for 2 months dropping to 3 days a week after 2 months for the rest of the year. This was sold as being located out of the UK with all expenses paid. Having been on the job for the 2 months full time the company announced that when the job went part time that they would not pay expenses ie the job was expected to be done from the UK. I expressed my concerns that this wasn't feasible.
At the point that the client appeared to be bending on needing me full time for at least another month I announced that I was only available 3 days a week as I had filled the other 2 days. The client's response was to terminate my contract. The client is now threatening to withhold 2 weeks money from the start of the contract as they stated that I wasn't fully productive. The agreement was that they supplied a laptop with specialist software. I would have been prepared to supply it myself but they said that they would supply it. They took 5 days to courier the laptop to me but the s/w was not installed. It took a further 3 days to get the s/w installed then a further 2 days to configure the database. All of this was logged through the client's fault log system. Plus I have records of all the phone calls made over 2 weeks.
The agent is 100% behind me. Should the client withhold money what options are open given that my contract is with the agent. Time sheets were submitted and approved. The client was aware of the problems that I was having getting them to provide what they had agreed to supply but did not make any complaint at the time. I also have doubts that they will honour the last month's expenses on top of withholding 2 weeks fees.

[MrButton]

Client threatening to withold money

So you have signed Timesheet’s.

Take a look at this for ideas.
https://overdue.work/

Credit : NickFitz

[northernladuk]

What does your contract say about all this? Is there anything about the agent not paying you if the client doesn't?

Do you have IPSE+ membership?

Is.it a UK agent?

[NotAllThere]

Please specify the countries involved.

But your contract is with the agent. The client may be irrelevant to your claim. You worked - the agency must pay you. Them getting paid is their problem.

What does your contract say about payment? Can the agency withhold payment if they're not paid? Even if it says they can, it may not be enforceable, depending on country.

[northernladuk]

If it's a UK agent what's your status WRT the The Conduct of Employment Agencies and Employment Business Regulations 2003? Opted in or out?

[Kevin1908]

To add some clarity. If my Limited Company and I are E, E is in contract to the agent D. D are in contract to C. I complete a time sheet for C. C are in a consortium with B. C invoice my time to B. The ultimate client is A a public body. It is B saying to C that they will not pay for 2 weeks of my time but it was C that caused the delay to providing the laptop and s/w. In the mean time I was using my laptop with email and office programmes.
To my mind the buck stops with C. I am still working for D for a new client. The same one that I had intended to work 2 days a week with. B only complained about the first two weeks after the ninth week when they decided to dispense with my services. I put this down to them saving money by putting their own local person in so not having to pay any expenses. Ordinarily there would have to be a dispute raised within 3 weeks of an incident. In this case the dispute was raised 7 weeks after the incident was resolved, so 4 weeks after the deadline for raising an issue.
One last point. After C had notified me that they would not require my services they asked me to send them electronic files which I did then return the laptop and security passes. They then emailed the agent about the 2 weeks non payment. I am not inclined to expend any further money returning the laptop but they can collect it any time. In agreement with the agent I left it at the agents office. C's Director is on holiday so there will be no movement until next week. The final timesheet and expenses were technically rejected as they timed out as the Director is on holiday.
I don't think the agent will let this go as it reflects on them and they are also losing the mark up on my time.

[Kevin1908]

Further info. D and C are UK companies. B is based in the UK and the EU country concerned. Not sure if C is contracted to the UK arm of B or the other country.

[Kevin1908]

And the Project Manager working for B left B the same week as me and is now working for C. So no conflict of interests there then.

[northernladuk]

What are the costs in returning the equipment? I wouldn't be buggering about keeping kit that's not yours. That's not going to help your cause one iota and can only cause more problems.

[northernladuk]

What a horrible mess. This would have something to do with Brussels would it...

Anyhow.. I didn't try understand it all as regardless of how many people are in the chain the only thing you have is the contract between you and agent D. The rest is out of your control and you have no contractual relationship with any of them.

You say..

I don't think the agent will let this go as it reflects on them and they are also losing the mark up on my time.

So it strikes me as that about as good as you are going to get although having to leave something in an agents hands rarely ends well for the contractor.

Even if they won't let it go, from your perspective the buck stops with them. You did work for them, it was signed off so you want payment from them. That's it.

Firstly I'd get your contract out and go through it with a fine toothed comb. You need to find out what was contractually agreed and what wasn't. You can threaten them with breach if all of this was agreed and then it changed. They won't like the idea of being sued if it's black and white it's possible they will cough up something, if not all of it.
If it's not then you are on a bit of a wish and a prayer and will probably need legal advice which is likely to cost more than you are actually owed.
You are looking for a clear statement about time, locations and expenses. You also need to look for 'not paid if client doesn't pay clauses'. If that is in you are a bit scuppered.

Also find out your status with regard to the regulations I mentioned. If you are opted in they have to pay you regardless so you are in the clear. If you've opted out you are back to square one. If it's unclear you are probably back at square one. Agents don't understand how opt in or out works so you are going to have be prepared for a fight even if you are opted in.

When you know exactly what the situation is put it to the agent and keep dunning them about it.

In the background you could put a claim in for business interruption to IPSE if you have their IPSE+ membership.

Going forward you will just have to make a decision as to how far you want to (or even can) take it before it's better just to write it off, which looking at the complexity of that, looks like a very real option.

Might be worth chatting to Safe Collections who have given plenty of valuable advice on here in the past as well