Agency Risk

[SlimRick]

Terms and conditions are a fundamental part of a legally binding contract and any broken terms can lead to breach of contract.

They have breached terms and conditions of the contract, and as such would have one hell of a time imposing the restriction clause on you.

In this case, I very much doubt whether the agency would risk the expense of a court case when it can be so easily be proved that they have breached the terms of the contract.

[TheRefactornator]

As you have said late payment is a breach of contract. Use this to sever all links with the agency and go direct with the client. How's that?

[NickNick]

Isn't one of the benefits of being "opted-in" that the agency are supposed to pay you regardless of tehm getting paid by Client Co?

[kryten22uk]

As you have said late payment is a breach of contract. Use this to sever all links with the agency and go direct with the client. How's that?

I get the feeling its not as simple as that. Not least because the agency has a similar clause in the end client contract, which stops the end client using me direct or indirect for 6mths.

[Menelaus]

Factoring / invoice discounting, perhaps?

Hey, if it's good enough for the agency...

[kryten22uk]

Isn't one of the benefits of being "opted-in" that the agency are supposed to pay you regardless of tehm getting paid by Client Co?

The date at which the agency gets paid is irrelevant. I have a business contract with the agent whereby they agree to pay me for consultancy. There is no contingent link. They may want to operate in a "you get paid when we get paid" style in order to minimise cashflow issues, but that’s not my problem. I'm fairly sure NatWest wouldn’t like it if I turned round and said I'll pay the mortgage if/when I get paid!

[thelace]

The agent should pay you as per contract, doesn't matter a fig to you whether they've been paid by the client.

Talk to the client with a view to contracting you direct, set up a contract with them if they'll allow you. The agency's contract is Null and Void if they have not kept up the payment terms stipulated in the contract.

Once you have a contract with the client direct, sever all links with the agency and immediately employ a debt collection agency to recover all monies owed including interest.

It sounds like the agency is teetering on the brink of insolvency and you want to be first in the queue to recover whatever you can from them.

Do Not carry on working for the agency, it's the equivalent of standing in the street burning £20 notes!

[TykeMerc]

The contract states that the agency agrees to pay within 30 days of invoice date. Not sure to what extent a breach of contract invalidates the other clauses though.

I have just received an email from the agent who says the "for some reason" the payment didnt go through, and he's only just noticed. He says he's out of the country at moment and will redo the payment on his return; albeit he didnt give a return date.

I've drafted an email stating my intention to apply the "The Late Payment of Commercial Debts (Interest) Act 1998" to this and any future late payments. The late payment is over £20k, so 8%pa interest for a month is not insignificant. This will destroy our faux-friendly relationship, but there's no way I'll renew with them ever again anyway.

That's a massive red flag, in your situation I would start immediate legals to recover the money that the Agency owes you, I would also talk the client into going direct as there have been clear material breaches of the contract by the Agency.

I would advise the client to NOT pay any invoices from the Agency too.

I'm afraid you're out of real options as it's clear that the Agency is in financial problems and you have to look after number one in these circumstances to limit your financial loss.

[s2budd]

This is a problem. Look the agency up on Companies House and see if there accounts are late. Pay for a credit check against the agency and speak with your end client about going direct.

[kryten22uk]

I did look up on CH but all seems fine.

I spoke to client, and their standpoint is that they are provided with a service (ie I turned up) and they're paying for it; all hunky-dory from their point of view.