Client gone bust =- should I still get paid?

[xoggoth]

If the company goes into administration then there may be a distribution at a later date if there is any dosh left over. I would be inclined to discuss with the agency how they intend to insure that they are registered as creditors and how they will then pay you any proceeds.

[original PM]

No. Depends on the contract.

If your contract states you get paid regardless then it fails IR35 but you get paid.

However if your contract is "normal" (well to me) then it will state that notice period is 2 weeks but you are only paid for work done, no obligation to find work etc.

Your contract notice period will be 2 weeks. Nothing saying they have to ask you to do any work in those 2 weeks.

Stop thinking about notice periods like permies - just becuase it says 2 weeks does not mean you will get paid 2 weeks.

Not sure about this - if they have not given your company the agreed 2 weeks notice then you will be able to sue for breach of contract and subsequent loss of income.

That is the reason why companies have notice periods for termination of contract - it is nothing to do with being paid or not being paid for work.

Think about it - you are tied into contracts on many levels - but say with Sky - you have to give a months notice to terminate the contract - you still have to pay during that month regardless of whether you watch it or not - in the same way that sky have to provide the service for that month whether you use it or not. And that is they key - your companies time has been set aside to work for this client at x per day - if they decide not to use it well that is fine but they still have to pay.

Small point I think but probably valid.

Maybe..

erm?