Agency Ending Contract Early, Not yet paid - Can IP and Work Product be withheld ?

[AussieDigger]

If an agency / client end a contract early and are yet to complete final payment (e.g. withholding it), can the contractor legally withhold the use of any work product produced during the contract until full and final payment is made ?

According to most contracts, IP vests with the client but that presumes the contract was completed and all work paid for. If work was completed but payment denied, is the IP therefore not in dispute ? Does this then mean the client may not use that work product ?


What are the options in this scenario ?

[northernladuk]

Question would be why are they withholding it. Answering that then opens up different avenues of action.

Not so sure about the presumption about IP is transferred upon completion. Most contracts are bum on seat just delivering. I don't think IP comes in to it as a product as you suggest. The clauses aren't explicitly linked in most contracts either I don't think. You get paid is one, IP is clients is the other. Even if you are in dispute about payments the OP clause still stands.

[SueEllen]

They are two different arguments.

You cannot withhold work in lieu of payment and they cannot withhold payment in lieu of work.

You need to do Dunning and chase the agency for payment. Give the agency a reasonable time to pay up - this is normally 30 days -, sending them letters using registered mail. In the letters make it very clear you will take action to recover the funds including legal action. Then get Safe Collections on to the case.

[northernladuk]

Check your opt in/out status as well. If you've got the right one thst should also remove some possible blockers they might be using I. E. Didn't get a signed timesheet if that's the one they are trying to pull.

[northernladuk]

Ah.. This?
http://forums.contractoruk.com/showthread.php?p=2472248

[AussieDigger]

They are two different arguments.

You cannot withhold work in lieu of payment and they cannot withhold payment in lieu of work.

You need to do Dunning and chase the agency for payment. Give the agency a reasonable time to pay up - this is normally 30 days -, sending them letters using registered mail. In the letters make it very clear you will take action to recover the funds including legal action. Then get Safe Collections on to the case.

Who are 'Safe Collections' ?

[AussieDigger]

Check your opt in/out status as well. If you've got the right one thst should also remove some possible blockers they might be using I. E. Didn't get a signed timesheet if that's the one they are trying to pull.

Whats the opt in / out status got to do with it ?

If an agency forces you to opt out when you already signed the opt in, are they acting illegally ? What can be done when they bully and harass you to opt in to something you're not obligated to do ? Can they be charged for a criminal offence ?

[northernladuk]

They can decide not to work with out if you won't opt out. It's a business choice. It's not about bullying and harassment. It's the terms of the engagement. Negotiate but if it's non negotiable then you take it or leave it.

With one of the options they have to pay you. It's not dependant on a signed timesheet. If you got booted off site on Thursday and couldn't get a signed timesheet on a Friday they might argue no pay without a timesheet as per the contract. Of you've got the right opt out they can't so this. We've had a few people in that situation.

[northernladuk]

Who are 'Safe Collections' ?

Google it. They also post on here under the same name.

[SueEllen]

Who are 'Safe Collections' ?

Debt collection agency.

If you start court proceedings agencies can close down. If you send a debt collector the debt collector will workout whether they have any assets as they only get paid if you do.