Advice: client is not paying for a contracting job

[farbor]

Dear guys,
I am new in this site. I would need a legal advice or at least an advice from someone that faced a similar issue in the past.
I used to work for an IT company as a full time employee. The company provide a laptop that has been paid partly by them and partly by me. Once I left the company I have offered them to buy the part of the laptop they still owned without receiving much feedback from them. In the meantime they hired me for a 3 days contracting job that I accept using an umbrella company. I have performed the job an regularly sent them over the timesheet required. The job was at a rate of £500 a day with 30 days payment terms. It has now past more then 90 days and the company still not making the payment claiming that the reason is the fact I did not return the laptop. Are they allowed to do that? My employment and my contracting job are 2 things completely separate and should be deal separately. Am I right? Just to let you understand the laptop cost was £600 (£300 each). What should I do? Any help is really appreciated? I am worried that this company once I they receive the laptop (that I have no problem to send...if they pay the part I own) they will still find an excuse for not paying. Please help! Thanks everyone

[LisaContractorUmbrella]

Welcome

Do you have evidence that the purchase agreement for the laptop was 50/50 and can you provide proof of your 50% of the purchase price?

[TheFaQQer]

Contract and employment work are completely separate things.

Get the umbrella to start chasing for bad debt and start charging interest on the debt.

[NCOTBAC]

Your company made you pay for half of your laptop? I find that very hard to believe. I have heard of incentive schemes that let you buy home computer gear at discounted costs through your wage but your works laptop? I smell a rat.

Welcome

Do you have evidence that the purchase agreement for the laptop was 50/50 and can you provide proof of your 50% of the purchase price?

If the company can demostrate any ownership... even if it is 1% and the issue hasn't been resolved and in the OP's hands then you can see why the company have an issue. They should be chasing their money not the laptop but this whole situation doesn't make sense...

Holding money back because you owe them a previous debt, whatever it is, is a bit tight but you can see the logic. So much over 50% of an old laptop seems a bit tight though. I presume this is a small company that are happy to make scenes over small issues like this? I can't think for one minute a corporate would be working like this.

What is legal and what they can do are two different things. To make it a legal issue you need to get a lawyer involved. Until then it is a negotiation between you and the company.

Ask them what they think a reasonable price for the laptop is, pointing out the market cost of it and the fact it has probably been written off after three years. Sort that issue, get your money and be glad you are rid of them IMO.

Oh just to add. TheFaqqer is absolutely correct but sometimes there are more ways to get to a resolution apart from the proper channels and I think this might be one of them.

[LisaContractorUmbrella]

Contract and employment work are completely separate things.

Get the umbrella to start chasing for bad debt and start charging interest on the debt.

Agreed. Has your umbrella company been chasing the debt for you? They should point out that your employment with them has no bearing on any agreements made in previous employments

[Wanderer]

Has your umbrella company been chasing the debt for you?

Just wondering... What happens if the umbrella can't be bothered chasing the debt on the workers behalf? Does the worker have any comeback?

[LisaContractorUmbrella]

Just wondering... What happens if the umbrella can't be bothered chasing the debt on the workers behalf? Does the worker have any comeback?

Well first if the umbrella company can't be bothered chasing the debt you should get a new umbrella company Seriously though, the contract is between the agency/client and the umbrella company so the onus is on them to try and recover the debt. If their in house credit control processes fail then they should have a debt collection company that they use or a solicitor who will take the process to the next level. The contractor shouldn't really have to get involved in chasing the debt.

[Old Greg]

Well first if the umbrella company can't be bothered chasing the debt you should get a new umbrella company Seriously though, the contract is between the agency/client and the umbrella company so the onus is on them to try and recover the debt. If their in house credit control processes fail then they should have a debt collection company that they use or a solicitor who will take the process to the next level. The contractor shouldn't really have to get involved in chasing the debt.

Can the contractor sue the Umbrella, regardless of whether the brolly gets paid by the EB / client?

[Contreras]

Well first if the umbrella company can't be bothered chasing the debt you should get a new umbrella company Seriously though, the contract is between the agency/client and the umbrella company so the onus is on them to try and recover the debt. If their in house credit control processes fail then they should have a debt collection company that they use or a solicitor who will take the process to the next level. The contractor shouldn't really have to get involved in chasing the debt.

Yes but... What happens if the umbrella can't be bothered chasing the debt on the workers behalf? Does the worker have any comeback?

[LisaContractorUmbrella]

Can the contractor sue the Umbrella, regardless of whether the brolly gets paid by the EB / client?

I am not sure about sue - people don't generally sue their employers but I suppose so. The way forward if the umbrella company won't act is probably to instigate an employment tribunal. The umbrella company is contractually obliged to make a salary payment to you once a month regardless of whether or not they've been paid so it's in their interests to chase the debt but if they don't then an employment tribunal would enable the contractor to cite the umbrella company, agency and end client - the tribunal judge would then sort it out.