Agency Withholding Payment - Signed Timesheet / Notice Issues

[MaryPoppins]

I know this has likely been asked a gazillion times on here, but a quick search hasn't shown the same scenario, so apologies.

My mate has given 2 weeks notice on her contract, she's contracted to give 4. Client is happy enough with the notice period, agency has gone banana's and are threatening legal action. They have also indicated they may withhold all or part of her April payment, to compensate for the lack of full notice given.

Her timesheet is signed, and she is opted in by default.

I assumed this is not something they should do - court action to recover (apparant) lost costs, rather than recovering them through not paying her?

[MarillionFan]

Well its fairly cut and dried. The contract is with the agency, not with the client.

By cutting two weeks off the notice. The client is happy and pays less. The contractor is happy and gets away earlier. But the agency loses two weeks commission.

So if I was the agency, then yes, I would withhold payment or take my cut out of the final amount.

She is in breach of her contract with the agency.

Simples.

[northernladuk]

Well its fairly cut and dried. The contract is with the agency, not with the client.

By cutting two weeks off the notice. The client is happy and pays less. The contractor is happy and gets away earlier. But the agency loses two weeks commission.

So if I was the agency, then yes, I would withhold payment or take my cut out of the final amount.

She is in breach of her contract with the agency.

Simples.

WHS I am afraid. Wouldn't your friend go banana's if the agency told your friend to walk with 2 weeks notice as well. It cuts both ways. As MF said the agency will be losing not only the comission on this but for the full term of the role and possible extensions. They can of course fill the spot but the cilent isn't going to be pleased having to go through the interview, wind down, wind up and the agent has to put the effort in to fill the spot.

Giving 2 weeks notice when it is 4 is really asking for everything you get I am afraid. Sorry.

I assumed this is not something they should do - court action to recover (apparant) lost costs, rather than recovering them through not paying her?

Question is which way is your friend most happy with? They do own the agency money one way or another. How they get it back is up to your friend to work out. This way or the courts. To be honest, the agent will not take it to a legal level as that costs even more money and time and I have never heard this happening but by god they can make it awkward for your friend.

[MaryPoppins]

WHS I am afraid. Wouldn't your friend go banana's if the agency told your friend to walk with 2 weeks notice as well. It cuts both ways. As MF said the agency will be losing not only the comission on this but for the full term of the role and possible extensions. They can of course fill the spot but the cilent isn't going to be pleased having to go through the interview, wind down, wind up and the agent has to put the effort in to fill the spot.

Giving 2 weeks notice when it is 4 is really asking for everything you get I am afraid. Sorry.



Question is which way is your friend most happy with? They do own the agency money one way or another. How they get it back is up to your friend to work out. This way or the courts. To be honest, the agent will not take it to a legal level as that costs even more money and time and I have never heard this happening but by god they can make it awkward for your friend.

Cheers both.

Not asking for guidance around the morality of her actions, I disagree with what she's done, and how ill informed she's been.

Just wondering whether this is something the agency can legally do.

[northernladuk]

Cheers both.

Not asking for guidance around the morality of her actions, I disagree with what she's done, and how ill informed she's been.

Just wondering whether this is something the agency can legally do.

Thing is we can all moan about your friend putting notice in early, breaching contracts, making us all look bad and stuff but at the end of the day it is your friends life. If they have been offered something better and don't mind riding the storm then go for it. Would be stupid of us to judge them for that. Gotta look after your own at the end of the day. Would I do something like this if a golden opportunity presented itself? I would try everything possible not to but if I had to then yes I would. Thats life. If they did it on a whim cause the fancied a change then thats slightly different

Yes they can recoup lost revenue as they are in breach of a legal agreement as already mentioned. They can only do something legally if they get it to court, something that to my knowledge no one has done yet so well worth a gamble IMHO. They can shout a lot and make threats so just suffer it for awhile and cross fingers.

[MaryPoppins]

Thing is we can all moan about your friend putting notice in early, breaching contracts, making us all look bad and stuff but at the end of the day it is your friends life. If they have been offered something better and don't mind riding the storm then go for it. Would be stupid of us to judge them for that. Gotta look after your own at the end of the day. Would I do something like this if a golden opportunity presented itself? I would try everything possible not to but if I had to then yes I would. Thats life. If they did it on a whim cause the fancied a change then thats slightly different

Yes they can recoup lost revenue as they are in breach of a legal agreement as already mentioned. They can only do something legally if they get it to court, something that to my knowledge no one has done yet so well worth a gamble IMHO. They can shout a lot and make threats so just suffer it for awhile and cross fingers.

What has annoyed me with her, is how little she knows about her rights as a contractor.

She's in an awful role, and I do feel for her.

But she has not even read the contract she signed, let alone had any idea of her notice period.

Now the agency are quite rightly annoyed with her, and of course she's turning to good old me for guidance.

She is typical of a lot of contractors I am sitting with right now, happy to take the money, but absolutely no idea of what is written in their contract, what the EAA regs are etc. I mentioned IR35 once and got blank looks, I kid you not.

[northernladuk]

What has annoyed me with her, is how little she knows about her rights as a contractor.

She's in an awful role, and I do feel for her.

But she has not even read the contract she signed, let alone had any idea of her notice period.

Now the agency are quite rightly annoyed with her, and of course she's turning to good old me for guidance.

She is typical of a lot of contractors I am sitting with right now, happy to take the money, but absolutely no idea of what is written in their contract, what the EAA regs are etc. I mentioned IR35 once and got blank looks, I kid you not.

Ahhh I see sorry. Yes, totally agree with you there. My annoyance at some of the basic questions we get on here shows my lack of patince for this type of thing. I have the same here as well, I have two guys on my desk claiming expenses 4 and 5 years in to the same contract here (IR35!!!!). Don't know whether to laugh or cry.

[original PM]

was the notice period 4 weeks between client and agency as well?

if not should have had chat with client and agreed she would be finished - and even agreed that in principle she would be happy to waive the 4 weeks notice and make do with 2

highly unlikely agency will take any action or make any threats to end client.

but yes i think read the contract before you sign it is always useful advice to give to people.

[MaryPoppins]

was the notice period 4 weeks between client and agency as well?

if not should have had chat with client and agreed she would be finished - and even agreed that in principle she would be happy to waive the 4 weeks notice and make do with 2

highly unlikely agency will take any action or make any threats to end client.

but yes i think read the contract before you sign it is always useful advice to give to people.

Yeah, she spoke to the client first and agreed 2 weeks notice, so they were happy with that. A replacement has already been found, so I'm not entirely sure why the agency are pushing this so hard with her - my gut instinct is that they are going to withhold payment from her, as she refuses to give the 4 weeks.

Personally, I wouldn't give 4 weeks notice either, but as I said to her, I'd challenge the clause before signing the contract. This is when she admitted she only knew it was 4 weeks notice from the blasting she'd got from the agency, as she didn't read her contract, and needed to check it. I was fairly gobsmacked at that admission, but she was blase about it, and more baffled about the way the agency have reacted.

I've had more of a think since bothering to ask you lot for your thoughts, and told her she probably deserves whatever they do.

[SueEllen]

I've had more of a think since bothering to ask you lot for your thoughts, and told her she probably deserves whatever they do.

Next time just refer someone like that straight here (and don't reply to the post yourself)

Yes they will be taken apart but they need to learn that they are not playing a game.