Recruitment Agency Blunder Refusing Payment

[sharemaster2]

Hi all,

I worked for an agency as an IT Contractor.

I got an IT position to work from a site in Swindon but also had the option to travel to other sites around the UK for the same company.

My expenses was always paid when submitted via an online portal system with receipts. When I got this three months contract position, I negotiated the contract with the agency and also get them to pay all my expenses as part of the contract, ie, Hotels and Trains Travels to and from site. This was agreed over the phone and was normal practice as well.

I subsequently submitted all my expenses every week to the agency and every week this was signed and approved for my expenses to be reimbursed back to me. Please note, every week I put in my expenses and it got signed off and approved by the agency. This went on for almost 8 weeks with no problem.


The point now is, not have the agency stopped paying for any more expenses claim going forward, they now even want to recoup all the expenses claim they have paid from when the contract started which is almost £4k!! So what they are saying is that they will not pay me my contractual pay as well to cover the expenses they have paid on my behalf all this while!!

Please note that every week, when I submitted my expenses and receipts on an online portal system, it was always accepted and signed off as approved.

My contention is the person who approved and always signed my expense claims seems to have made a mistake from what the agency are saying and I am claiming that I am supposed to get my expenses paid for.

Therefore, I am now paying my own expenses as it stands and also facing my money due to my company being stopped as well.

The contract I am on, has a week left on it and it seems I will be out of pocket for this blunder and claim by the agency who claim that I was told over the phone that Swindon was my home site and therefore no expenses was to be paid for me. Which I think is all rubbish really. If that was the case does it mean they were incompetent when all my receipts was properly inspected and signed off as approved for a whole six weeks? This really started when funding for the project was not forthcoming for the next phase.

I have to say this agency has a very bad reputation and are good at trying to ripp contractors off.
I am disputing the fact that not only are they saying they will not pay my expenses moving forward but the fact that they are withholding my contractual pay too!! They are doing this as I have just a week more on the contract hence this attitude from them.

I want to sue them and go all the way to court if I have to as I will not accept this sort of attitude from a Recruitment Agency. These are the sort of agencies they call " Cowboys" this one is one of them.

If I am right, my next action is to write them a letter before action, is that right?

Can I be advised me on my next move please. I am going all the way with this one!! Some of these cowboys agencies need to be stopped and I will keep you all updated on my progress.

I need to send them a "Letter Before Action" and will like a sort of sample daft to or Template to use please.

Thanks to all indeed.

[Andy Hallett]

The answer will normally lie within your contract. There should be a section which deals with what constitute legitimate expenses.

[Wanderer]

What does your contract say about expenses?

I negotiated the contract with the agency and also get them to pay all my expenses as part of the contract, ie, Hotels and Trains Travels to and from site. This was agreed over the phone and was normal practice as well.

Did you get this in writing? If you didn't then you've got quite a fight on your hands to prove what was agreed verbally. Not saying you won't win but you will have a tough time proving anything unless you recorded the call. The agency aren't in a great position if they have approved and paid the expenses though.

You probably want to get some proper legal advice from a debt collector about this....

[kal]

What does your contract say about expenses?



Did you get this in writing? If you didn't then you've got quite a fight on your hands to prove what was agreed verbally. Not saying you won't win but you will have a tough time proving anything unless you recorded the call. The agency aren't in a great position if they have approved and paid the expenses though.

You probably want to get some proper legal advice from a debt collector about this....

Agree but if agency has happily paid OPs expenses up to now then surely they have accepted that agreement?

[Wanderer]

Agree but if agency has happily paid OPs expenses up to now then surely they have accepted that agreement?

Quite possibly, yes. That would certainly be the core of my argument if there was no written agreement. I'm not a lawyer though...

[Brian Potter]

Try to avoid threats such as "sue" and "legal action". Stick with "seek advice" or "assess my options". As soon as you make the threats they'll be more inclined to break off comms with you.

Remember, they have employment law resources, whether in house or external, whereas you have to Google, post on forums and ask strangers for advice.

If you're serious about seeking the legal aspects then contact a law practice who can advise you on your options and the costs.

Making threats that you cannot carry out or even researched will just make you look very silly and may even end up costing you.

[SeekingIT]

Help Us

You may not want to name and shame, but could you give us a subtle hint as to who this agency is?

May help us if ever faced with two competing contracts and be a deciding factor to choose between them?

[stek]

So the role is based in Swindon, with 'option' to travel to other sites, whats that for? Work 100% needed there or just the company has other sites you could work from?

What exactly are these travel expenses? Home to Swindon? Swindon to other sites?

[TheFaQQer]

Agree but if agency has happily paid OPs expenses up to now then surely they have accepted that agreement?

If the person who approved them was under the impression that this had been agreed in the contract, when in fact it hadn't, then there could be an argument that there was misrepresentation on the part of the OP. In that case, just because they have mistakenly approved the expenses in the past doesn't mean that they aren't allowed to ask for that mistake to be rectified and have the money returned.

Worst case scenario, the agency claims that the expenses were fraudulently made, which makes it a criminal matter rather than a civil one.

[TheFaQQer]

What does your contract say about expenses?

Did you get this in writing? If you didn't then you've got quite a fight on your hands to prove what was agreed verbally. Not saying you won't win but you will have a tough time proving anything unless you recorded the call. The agency aren't in a great position if they have approved and paid the expenses though.

You probably want to get some proper legal advice from a debt collector about this....

Exactly this - is there anything in writing to support the case? If there isn't, then you'll have a devil's own job arguing that the expenses submitted are legitimate and should be paid.