for anyone suffering - if you worked but have not yet had past timesheets signed and invoices submitted then see if you can buy your way out of the original agency contract via the liquidators. this will then enable you to invoice the client directly (or through another agency). it worked for me in the past when in knew something fishy was going on and withheld invoices (with clientco understanding & assenting)
however, given the same set of circumstances i would definitely advise walking at the first sign of agency collapse rather than witholding on in hope. the pain is not worth any reduced gain.
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Reply to: Blue Anvil in liquidation
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Previously on "Blue Anvil in liquidation"
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Originally posted by Not So Wise View PostTruthfully? Yes, and have done so in the past
Was burned by an agency going under and once was more enough. If anything seeing an agency offering those terms is a very big warning sign to avoid them all costs because they are very obviously suffering a cash flow issue
Experience has shown me, that when you have the choice between , not working vs. working (and living/spending with the expectation of getting paid) and not suddenly getting paid after months of work, the latter is far worse. It took me over a year to undo the damage it did to my finances when it happened to me
Originally posted by Not So Wise View PostNope, if Hector saw things that way every contractor would be automatically outside IR35. Way they see it risk of not getting paid because client/agency folded is not a factor and honestly one of the few "definitions" of IR35 I agree with because employee's work under same risk.
You are confusing this with the type of "risk" a company might face because they spend a lot of work/money on developing a bid for a contract they know they might not get, you on other hand expected and should have got paid
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Originally posted by teletubby View PostWe are all being 'migrated' to another agency who will be taking over our contracts from 10th July.
Liquidator will have negotiated best terms for their creditors, not for you so be aware you are not under any obligation to accept your contract transfers as the reality is "contract" no longer exists as an on going concern and any restrictions about you working for client (and any simerlar clauses in client/agency contract) are probably now null and void (though once again consult a lawyer)
Originally posted by teletubby View PostBut, Blue Anvil (or the Liquidators) cannot invoice without timesheets for the first part of July, so despite the fact there may have been a contract between Blue Anvil and O2 which ended upon the agency going out of business, are O2 really bound to BA for that period if I don't send BA a timesheet?
Submiting invoices at this stage without written confirmation from liquidator that you will get your payment will be just basicly sending money to the liquidators clients. So unless this new agency has agreed to covering your missing payments you need to get a lawyer involved
Edit: Though just had a thought, do BA have timesheets from you? If they do they can most likely invoice client without your invoices anyway. Them billing client will be dependant on timesheets not your invoices
Originally posted by minstrel View PostWould you walk away from a contract with monthly invoices with 30 day payment terms?
Was burned by an agency going under and once was more enough. If anything seeing an agency offering those terms is a very big warning sign to avoid them all costs because they are very obviously suffering a cash flow issue
Experience has shown me, that when you have the choice between , not working vs. working (and living/spending with the expectation of getting paid) and not suddenly getting paid after months of work, the latter is far worse. It took me over a year to undo the damage it did to my finances when it happened to me
Originally posted by minstrel View PostI know a lot of agencies do pay quicker, but I thought from a standard business perspective 30 day terms was reasonable.
Is doing that and providing a factoring service? Yes
Originally posted by minstrel View PostLooking on the bright side it is a clear example of taking risk and might help add some weight to an IR35 defence in the event of an investigation.
You are confusing this with the type of "risk" a company might face because they spend a lot of work/money on developing a bid for a contract they know they might not get, you on other hand expected and should have got paidLast edited by Not So Wise; 22 July 2009, 13:33.
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Originally posted by teletubby View PostI'm also at O2.
The 3 months is, I guess, the same as me. That's May (which should have been paid at the end of June), June and the first week or so of July. We are all being 'migrated' to another agency who will be taking over our contracts from 10th July.
But, Blue Anvil (or the Liquidators) cannot invoice without timesheets for the first part of July, so despite the fact there may have been a contract between Blue Anvil and O2 which ended upon the agency going out of business, are O2 really bound to BA for that period if I don't send BA a timesheet? Why should I send a timesheet to enable the Liquidators to screw even more fees out of the creditors?
Surely O2 should be able to pay us for all of July as it's not been invoiced?
I think if you came to an agreement with the new agency and local O2 management to invoice the first week of July through the new agency you would probably get away with it. Even if you have to do it by invoicing future days when you are on leave. Might be a bit dodgy if you put a timesheet dated for work done before 10th July through the new agency. Perhaps you worked weekends from 10th July?
The other point is that you could argue Blue Anvil were in breach of contract the moment they paid late.
I've heard of other contractors who have managed to get uninvoiced days paid through a new agency in these sorts of situations.
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Originally posted by Not So Wise View PostAnd to anyone else, this is exactly why you don't accept payment terms from agencies that leave you over exposed, especially in current market. From the first day of work until payment you never want much more than 5 weeks exposure (less is even better). Monthly invoices with 30 day payment terms can mean you are 8 weeks+ out of pocket before you even get an hint that something is wrong.
Would you walk away from a contract with monthly invoices with 30 day payment terms? I know a lot of agencies do pay quicker, but I thought from a standard business perspective 30 day terms was reasonable.
I did consider the risk of non-payment and it has always concerned me. However, it was a risk I knowingly accepted, so, although it's very disappointing, I don't feel I can complain too much to anyone other than the Blue Anvil Directors.
Looking on the bright side it is a clear example of taking risk and might help add some weight to an IR35 defense in the event of an investigation.
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Originally posted by Not So Wise View PostHate to tell you this, especially if you are owed 3 months (why why why did you let it go so far?!?!?) but if liquidators do not work out a deal to sell the contracts you will be lucky to see a fraction of the money owed to you, and even that fraction will be a long long time coming.
The 3 months is, I guess, the same as me. That's May (which should have been paid at the end of June), June and the first week or so of July. We are all being 'migrated' to another agency who will be taking over our contracts from 10th July.
But, Blue Anvil (or the Liquidators) cannot invoice without timesheets for the first part of July, so despite the fact there may have been a contract between Blue Anvil and O2 which ended upon the agency going out of business, are O2 really bound to BA for that period if I don't send BA a timesheet? Why should I send a timesheet to enable the Liquidators to screw even more fees out of the creditors?
Surely O2 should be able to pay us for all of July as it's not been invoiced?
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Originally posted by gerryW View PostIts looking like 3 months money for us guys here at O2, as O2 just want to wash their hands of us.
They say they will pay May, June and upto July 11 to Blue Anvil administrators, can they still pay monies for work not yet invoiced to the liquidised company??
Any ideas greatly received
Common sense says you would try to get client to pay you direct but if the client has a ounce of legal knowledge they will not do that as legally they will still be obliged to pay the agency (or in this case the liquidators) the full amount, thus they could end up paying twice.
Sometimes you get a liquidator that will work out a deal, either to just get the agencies commission and allow you to keep what is owed (very rare) or they "sell" the contracts to another agency and new agency take on the obligations. But in today's market agencies able to fork out that kind of money will be slim on the ground
Hate to tell you this, especially if you are owed 3 months (why why why did you let it go so far?!?!?) but if liquidators do not work out a deal to sell the contracts you will be lucky to see a fraction of the money owed to you, and even that fraction will be a long long time coming
I seriously hope you all have not been continuing to turn up on client site since you heard about the liquidation and also hope you have contacted a lawyer by now (the liquidator is NOT your friend nor on your side, do not, under any circumstances, be taking advise from them).
Oh yeah and in regards to you question, do not submit any more invoices until you consult a lawyer. Invoices at the moment mean money for liquidator and his clients, they do not necessarily mean money for you
Other than that, sorry to hear about this, it can really mess your life and finances up, as I know from hard personal experience
And to anyone else, this is exactly why you don't accept payment terms from agencies that leave you over exposed, especially in current market. From the first day of work until payment you never want much more than 5 weeks exposure (less is even better). Monthly invoices with 30 day payment terms can mean you are 8 weeks+ out of pocket before you even get an hint that something is wrong.
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Originally posted by gerryW View PostIts looking like 3 months money for us guys here at O2, as O2 just want to wash their hands of us.
They say they will pay May, June and upto July 11 to Blue Anvil administrators, can they still pay monies for work not yet invoiced to the liquidised company??
Any ideas greatly received
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Its looking like 3 months money for us guys here at O2, as O2 just want to wash their hands of us.
They say they will pay May, June and upto July 11 to Blue Anvil administrators, can they still pay monies for work not yet invoiced to the liquidised company??
Any ideas greatly received
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Originally posted by minstrel View PostI'm going, and I know a couple of others that are.
I'm not sure how worthwhile it will be. I doubt we'll get any more money by going. I'm going because I'd like to see how the process works and give the Directors an opportunity to explain themselves. If there has been any wrong-doing by the Directors I'd like them to be held to account.
From the research I've done, the IP does have the role of investigating whether there have been any improprieties. However, I suspect there is no huge benefit to the IP in going after the Directors and they will need to be driven by the creditors.
There might also be an opportunity for us all to drown our sorrows with a pint afterwards.
if so, you are entitled to ask the administrator/liquidator to express an opinion as to whether/not they are satisfied that at no point were the directors potentially guilty of fraudulent trading, and secondly, that the directors/shareholders did not have payments made to them in the last few months to the detriment of the wider body of creditors.
When you look at the business model of one of these businesses its hard to see how they can go bust with large debts without some form of skulduggery having taken place. I suggest you write to the IP ahead of the meeting and request specific answers to the questions. It gives them a chance to look properly.
The problem you have is getting access to the books to get the work done prroperly.
Good luck and keep us posted.
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Originally posted by Lost2MuchMoney View PostIs anyone going on the 28th? Is it a worthwhile exercise?
any thoughts?
I'm not sure how worthwhile it will be. I doubt we'll get any more money by going. I'm going because I'd like to see how the process works and give the Directors an opportunity to explain themselves. If there has been any wrong-doing by the Directors I'd like them to be held to account.
From the research I've done, the IP does have the role of investigating whether there have been any improprieties. However, I suspect there is no huge benefit to the IP in going after the Directors and they will need to be driven by the creditors.
There might also be an opportunity for us all to drown our sorrows with a pint afterwards.
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Is anyone going on the 28th? Is it a worthwhile exercise?
any thoughts?
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Blue anvil
My theory is that they lost the contract to supply BT directly with contractors to Hays IT and that this just tipped the balance to there shaky business model being unworkable.
Blue Anvil Systems probably bought any assets on the cheap last month...
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