2e2 into administration - what next for contractors

[BolshieBastard]

As already said do not submit any further invoices or timesheets to 2e2.

You need to inform the client you have to break the contract with 2e2 by not coming in for work for one day. This is not a holiday, it is not billable or paid.

You then need to discuss with the client payment of your outstanding invoice (the one(s) not sent to 2e2), whether they'll take you direct, whether you can select another agent or have to use one on their PSL. You also need to make your client aware that any additional or higher charges applied by an agent on their psl wont come out of your rate ie you will be paid the same rate as under 2e2.

Good luck and keep in touch with any other contractors affected by this.

[Andy Hallett]

Essentially, until your agent tells you to come off site, they're contractually bound to pay you.

Spot on.

[northernladuk]

The best thing is to sit tight. Your contract is with the agent (not 2e2) who has insurance in place should such an event happen. Essentially, until your agent tells you to come off site, they're contractually bound to pay you. Someone might jump in and buy the part of the business that you're contracting for (there are 10 in all).

You can be assured that there are people behind the scenes trying to ensure that continuity is maintained with 2e2's client base.

Even if they have a clause that says the contractor does not get paid unless the agency does? We have had issues with this type of clause on the forums before.

[WindyAnna]

As someone who has been on the wrong end of this more than once it doesn't look good.

If you're through an agent rather than direct to 2e2 then as PPs have said the agent should pay you but check your contract first, it is possible that there is a clause in their to state that they can withhold payment in the event of their not being paid.

If you're working direct for 2e2 then you're probably stuffed, the role of the administrator is to keep as much money in the business as possible whilst continuing to bring it in. If you are working on a client site then they are unlikely to pay you for the time worked as they will be legally obliged to pay that money to 2e2, so if they pay you then they will be paying it twice! If you have a truly lovely end client they may make a gesture but it is likely to be small and may still be challenged - in my experience when M&S made a clear "goodwill gesture" of payment to each contractor affected the administrator threatened legal action to get that money paid to them and frankly only withdrew when M&S indicated they were prepared to fight.

If you have insurance it is unlikely to cover your daily rate but you can invoke it.

If you have contractual clauses related to insolvency they can't be invoked for administration (I've tried).

Take legal advice before doing anything - administration law is an absolute minefield - don't assume the folks on here know what they are talking about (although many do).

Good luck!
Windy

[BoredBloke]

Nice to know that as contractors we have zero risk!!

[cojak]

2e2 into administration - what next for contractors

WWAS regarding getting legal advice.

If anyone with experience of this has recommendations of legal advisors I'm sure they'll be welcome.

[rob s]

Even if they have a clause that says the contractor does not get paid unless the agency does? We have had issues with this type of clause on the forums before.

I thought pay-when-paid (or whatever it's called) was made illegal back in about 1998? Or was that just for construction contractors?

[0mega]

Sorry to hear about this, hope you get something back.

If you are a member of PCG, you may be covered by their agency default insurance.

Can't remember how much this is, but may be worth checking.

[crowe99]

Sorry to hear about this, hope you get something back.

If you are a member of PCG, you may be covered by their agency default insurance.

Can't remember how much this is, but may be worth checking.

Thanks for the advice. It looks like the PCG cover could assist although in this case the contract is with a 3rd party who provide services to 2e2 who are in Administration. At the least their legal helpline is useful so thanks again. Fingers crossed for a positive (of sorts!) outcome.