Reply to: IR35-friendly company suggesting legal action for non-exclusive working...

[shaftedcontractor]

Have they said why they are getting all upset about this?


If you did all the work on time and it does what it was supposed to do and they are hapy with it what is thier problem? Have they got financial difficulties and are using this as an excuse to hold off paying you?

That's my thought.....

[Ardesco]

Have they said why they are getting all upset about this?


If you did all the work on time and it does what it was supposed to do and they are hapy with it what is thier problem? Have they got financial difficulties and are using this as an excuse to hold off paying you?

[shaftedcontractor]

They can dictate what another limited company can do - but only as stipulated by the contract.

You say there was no exclusivity clause, however check the contract carefully about any non competition clauses - they are more common. However, if the other work your company undertook was not in competition with them - or for their competitors then you are probably in the clear.

I just spoke to the PCG Legal Helpline and they say that there's nothing in the contract to restrict my trade in this manner and any email conversations prior to the signing of the contract are generally superceded by the contract and ther terms are expected to be stated in the contract if they are to be binding or are to be ignored if not mentioned.

Anyway, I'm still awaiting their response.

[ASB]

Nope, no agency, two small Ltd companies (me and them) only.

I'm getting the same opinion from everyone that they can't dictate what another Limited company can do (and they were the ones that stated it was to be a B2B contract basis rather than as a permie).

They can dictate what another limited company can do - but only as stipulated by the contract.

You say there was no exclusivity clause, however check the contract carefully about any non competition clauses - they are more common. However, if the other work your company undertook was not in competition with them - or for their competitors then you are probably in the clear.

I don't know if the PCG legal helpline will write a letter on your behalf (although I suspect not). If you have not got resolution quickly then get a solcitor to do it for you. Unfortunately this is just one of the costs you generally need to take on the chin, but an imaginitive solicitor might be able to find ways of counter claiming.

[shaftedcontractor]

Is there an agency involved? Either way, no contract (except perhaps a permie contract) can dictate who else you work for. Sounds like an HR monkey needs a little education in business contract law, perhaps?

Nope, no agency, two small Ltd companies (me and them) only.

I'm getting the same opinion from everyone that they can't dictate what another Limited company can do (and they were the ones that stated it was to be a B2B contract basis rather than as a permie).

[shaftedcontractor]

If I were you'd I'll tell them how much interest you are going to start charging them on what they owe you and get your solicitor to write a strongly worded letter stating the fact.

Hell, better still send them a link to thread and we can laugh at them...if that doesnt make a point they deserve to get shafted in the courts.

The interest is an easy one, their contract does have a provision/clause for me charging them interest on late payments.

If I don't get a decent resolution then I may well invite them to post on here.

[Mordac]

Is there an agency involved? Either way, no contract (except perhaps a permie contract) can dictate who else you work for. Sounds like an HR monkey needs a little education in business contract law, perhaps?

[Pondlife]

Yes, the additional work was for other clients. They were under some impression that my Limited Company was to work exclusively for them, even though it says nothing about it in my contract.

Feck 'em - time to take it to the mattressess (sp?)

[Sockpuppet]

Thanks for the hint, I'll give that a go.



Yes, the additional work was for other clients. They were under some impression that my Limited Company was to work exclusively for them, even though it says nothing about it in my contract.

If I were you'd I'll tell them how much interest you are going to start charging them on what they owe you and get your solicitor to write a strongly worded letter stating the fact.

Hell, better still send them a link to thread and we can laugh at them...if that doesnt make a point they deserve to get shafted in the courts.

[shaftedcontractor]

Have you tried the PCG legal helpline? You're a paid up member so might as well use the benefits.

Thanks for the hint, I'll give that a go.

Also it wasn't clear (or I skimmed over it) but the additional work was for other clients and not the one your agency is contracted to. i.e. you weren't doing a bit of extra work for them and invoicing separately?

Yes, the additional work was for other clients. They were under some impression that my Limited Company was to work exclusively for them, even though it says nothing about it in my contract.

[Pondlife]

Have you tried the PCG legal helpline? You're a paid up member so might as well use the benefits.

Also it wasn't clear (or I skimmed over it) but the additional work was for other clients and not the one your agency is contracted to. i.e. you weren't doing a bit of extra work for them and invoicing separately?

[Xenophon]

"EXACTLY!!!, now gimmie my money you fkuctards!!"

Always a good line when chasing unpaid invoices I find.

[shaftedcontractor]

LOL!!!

Thanks Ardesco, that really cheered me up on a day like today.

Anyway, I'll see what they come back with and post back here.

[Ardesco]

Well if they really thought that they should have put a specific clause into your contract stating that and increased your rate accordingly to compensate for your loss of income from other ventures.

Ask them if they would agree to only sell thier products/services to 1 customer only. When you get a stunned silence, or a "don't be stupid" you can reply with "EXACTLY!!!, now gimmie my money you fkuctards!!"

[shaftedcontractor]

Thanks Ardesco.

To be honest, I've spoken to a solicitor and she says the same thing. Unfortunately it looks like this month's wages are going to be delayed until the court action... :-(

It's a shame it's all turned like this. The contact I have at the company feels that I shouldn't have been working outside of their contract, so is in agreement with the company owners.

Anyway, there's still another hour or two of the day left so hopefully they'll come back with something more sensible.