ClientCo may be in trouble: what to do?

[darrenb]

I'm contracting direct in a German company. I've been trying to concentrate on my job, but now getting the feeling that things are falling apart around me. All the higher-paid people have left or are leaving. For a while I thought this was normal ebb and flow in a pretty well established company, but I had a struggle getting my last invoice paid. They paid it because the work I do is important and they need me, but that doesn't imply they will pay the remaining invoices.

Starting to think the remaining people (mostly employees) know something I don't. Kind of a creepy feeling. I should have asked the other contractors but they vanished. Don't know if they will respond to the emails I've sent. PM can't look me in the eye.

Trouble is, I've committed to a contract and I don't have a good legal or ethical reason to ditch the company. Right now they are all paid up (it's 30 days terms unfortunately). I still have a couple of weeks left on the contract. Hope I'm imagining things.

What would you do? Anybody know about credit checks in Germany, and how easy it is for a company to go bankrupt and escape its debts? Or fold a subsidiary into a parent, and screw the contractors in the subsidiary? Stuff like that?

[Zippy]

I don't know about the legals but your gut instinct is usually right.

Get yourself another contract sorted out asap and (if possible) only extend on 7 day terms.

All the best.

[darrenb]

Get yourself another contract sorted out asap and (if possible) only extend on 7 day terms.

I don't need or want to extend. I'm just worried about the last invoices that cover about seven weeks of work.

[dogzilla]

I don't need or want to extend. I'm just worried about the last invoices that cover about seven weeks of work.

You need to apply pressure before you leave I would have thought, whilst they still feel they need you to stick around. If they are going under and you are no longer on site... you'd get dropped to the bottom of the list I recon.

[darrenb]

You need to apply pressure before you leave I would have thought, .

Fair point, and I already have. I just hate the idea of possibly working for free for the next two weeks. I'm looking for ideas about (1) how to find out more about what's going on, (2) what kind of scenarios I might be facing, and (3) what legal recourse I might have in Germany.

[JoJoGabor]

In reality it will take you two weeks to get into another contract anyway. Its probably worth working them on at least some chance you will get paid. If they go into administration you should get something (usually a small percentage of what you are owed). Depends whether you would rather get something, or go on holiday for two weeks.

[SueEllen]

Fair point, and I already have. I just hate the idea of possibly working for free for the next two weeks. I'm looking for ideas about (1) how to find out more about what's going on,

Are you friendly with any of the permies?

Are you friendly with the security guards or receptionists?

Do you travel in/home with anyone?

This is why you need to be as friendly as possible with random people in the building.

[darmstadt]

Anybody know about credit checks in Germany,

Tried it once some years back. A lot of red tape but still couldn't get anything without some form of legal documents. Not even worth thinking about

and how easy it is for a company to go bankrupt and escape its debts?

Not that easy but it depends on how big the company is. Frau D. for example worked for Schlecker which recently went bankrupt (25,000+ employees) and although there were court appointed doo-daa's she's still waiting for money some months after.

Or fold a subsidiary into a parent, and screw the contractors in the subsidiary? Stuff like that?

Easy, but I would expect that your contract is then transferred to the 'new' company and if not then they would have to invoke the 'kundigung' clause in it but still have to pay out the outstanding monies, otherwise you sue. If you had joined Gulp then you could have used their legal service for contractors.

Really the best thing to do is talk to people where you're working and find out if anything is happening.

[Platypus]

I don't need or want to extend. I'm just worried about the last invoices that cover about seven weeks of work.

Could you express your concerns in an open and frank manner, and ask for weekly payment to "allay your fears" ?