Breach of Contract????

[poppet]

Hi, I hope someone can help me. I worked as a contractor for the last 18 months, during which time I was on a Client site. A month before my contract was finishing, I approached the company to ask if I was being extended. They suggested that it would be dependent on whether the Client needed me. The Client didn't need me and told the company and the Client went on to externally advertise the job, which I then applied for and got. I did tell the company what I was doing a week before my contract finished and they said nothing.

The problem is that in my Contract it states that I cannot work for the company's Clients for a year after my contract finishes. I am owed a few weeks salary and when I questioned when it would be paid, was told that it was on hold due to breach of contract. Can they do this? It does not state in the contract what the penalty is for breach of contract, it just says that if any breach of the contract is made, that it must be stated in writing, then given time to correct it, but if it is not corrected then termination of the contract will be the penalty. The contract has already expired so what next?

Also, I feel that they have breached the contract as it clearly states that I should be paid one week in arrears, 70% of the time they were late in paying, so could I bring this into the equation?

I just want to receive what I am owed for the work that I completed satisfactorily, but don't really want to go down the route of the legal action as I know that I breached the contract.

If anyone can help I would be most grateful.

[Swamp Thing]

Without seeing your contract, the agency is effectively withholding your remaining invoice revenue as damages for breach of contract. If as you say there is no specified remedy for breach of contract, then the agency is illegally withholding payment.

Calmly put this point across to the agency, explain that they should not confuse this with the other - unrelated - anti-competition/loss of revenue clause, and agree immediate payment of outstanding monies to you. If the agency does not concede on this point, then the small claims court is available to you.

Regarding the competitor clause, to be honest you should have negotiated this down to 3-6 months at the start of your contract, but we are where we are. You are bound by this clause and no matter what you say, it will suit the agency's agenda that by working direct with the client you are depriving them of revenue.

If you really want the perm role, my advice would be to burn your bridges with the agency and small-claim them for the outstanding monies you are due.

The agency may counter-threaten on the separate issue of the 12-month clause, but they would have to demonstrate to a court that they would be suffering real loss, and that whatever penalty they may threaten you with, it cannot be for a punitive amount of money. Come to think of it, does the agency in the first place have the appetite to raise a claim against you?

If you're not too bothered about the role and can get something elsewhere, that might be the least painful way to go. But still claim your remaining monies out of the agency, even if that still means a small claim.

HTH, Swamp

[NotAllThere]

There are a few things that could affect the legality of the handcuff clause.

1. Restriction of trade - they can't stop you earning a living
2. Opted in?
3. Who the "company" had a contract with - you personally, a brolly, or your ltd co