Client threatening to sue

[gator123]

Thank you for all your replies. They have been very informative. I was going to say that there was no notice period agreed but they will no doubt say I agreed to one. They have not turned out to be the most truthful of employers and I have learnt my lesson about a written contract.

[Wanderer]

What are my options? Would they have a valid reason to sue for breach of contract.

No they can't sue you, they are taking the piss and bullying you.

My advice is to start looking for a new job and then get out of there as quickly as you can. Note that if there are no contractual payment terms then proceed as if it were 30 day terms.

Once you have left, hit them with penalties and interest for late payment. See The Late Payment of Commercial Debts Regulations 2013 - Pay on Time

[BlasterBates]

The payment terms are in the contract, no pay then 7 days grace to payup or else and off you go.

I think I might get letter written by a lawyer, just to be sure.

[nrsql]

They've gone from paying weekly to paying monthly and now being late with that.
I think you know where it is heading.

I suspect at some point they will stop paying altogether but will try to get as much unpaid work out of you as possible. Try to reduce the amount of outstanding payments. Leave as soon as possible and don't expect any payments after you tell them you are going. Would be a good time to arrange a holiday or to be off sick.

Have you told the end client what is happening - if you have a good relationship with them you could suggest working direct - maybe getting them to buy you out of your contract.
When the end client pays shouldn't affect when you get paid - if it does your rate should be increased to compensate for your cashflow and the decreased risk you are giving to your client.

[MyUserName]

I would say your options are walk away or run away.

If they are having trouble paying you what makes you think you will get any/all of the money even when they have it to give to you?

Just think how awesome this is from an IR35 perspective and walk out imho.

[Platypus]

If they are not able to pay you until they're paid, that sends warning flags the company is teetering on the edge of collapse and might not pay you anyway.

Absolutely agree. Alarm bells are ringing load here.

[Gym beast]

TBH mate the alarm bells were ringing the moment I read the £150 /day part. Agreed it's not the lowest rate I've seen, but pretty damn close. You're obviously an intelligent and articulate fellow but possibly the rule of thumb is, the better you're paid, the better you are respected.


The old, "We can't pay you until we've been paid" is the clarion call of the crappiest, most disorganised, most poorly-financed companies.


I'm guessing too you wouldn't have taken that rate unless you needed the money, so batten down the outgoings. The rest depends on how badly you need their money, because as of today you have no other contract in hand. From what you said, I'd say keep at it but frantically hunt for something else.


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