HELP! Unpaid invoice, recruiter dissolved!

[monkfish]

OP,
I'd not jump to conclusions but check your contract and see precisely which entity your company signed a contract with.

There are references to more than one recruitment organisation at Companies House with the name you specified - the dissolved one being a different office address.

An active .com website doesn't actually make it clear the precise company name but it does match registered office details for an active entity.

This entity also appears to have engaged in invoice factoring - commonplace among agencies - therefore you should have little difficulty in getting your invoice paid.

As for another similar entity being dissolved, I wouldnt be too hasty in future to post woe is me without re-checking details.

Now, of course, if your contract IS with the dissolved name then you have a problem, best of luck.

[JoJoGabor]

I would have thought that if the company is dissolved it is no longer a legal entity, therefore any contracts it had are no longer in force or valid. They are only valid and enforceable for the period the company was actively "trading", i.e. pre dissolved status.

I'm not a lawyer so usual disclaimers apply. If I were you I would speak to one and explore your options (e.g. contracting directly from the date the company was dissolved?)

Would give you a clearer view of your options

This^

This happened to me for an insurance client. I approached them asking to contract direct as the agency was no longer a legal entity. Their lawyers reviewed it and I was working direct with the end client a few days later. Anything else I'm afraid you have to write off and forget about

[BlasterBates]

Yes indeed

They will burn up 90% of all incoming fees on there own fees 1st


Sent from my iPhone using Contractor UK Forum

yes but the point is you will be informed. It's true that you would join the queue with any outstanding debt, but if you had time to run on the contract going forward you can negotiate with them. If you agreed they would be obliged to pay you as it is illegal for them to run up any further debt.

[GhostofTarbera]

An administrator is appointed and takes over the company. Initially it will trade as before as the administrator negotiates with debtors and evaluates the viability of the company as a going concern. He will reach out to all the contractors as creditors and in particular the ones who have ongoing contracts. The administrator will make a decision on whether and when the company will cease to trade. This won't happen without anyone knowing.

Yes indeed

They will burn up 90% of all incoming fees on there own fees 1st


Sent from my iPhone using Contractor UK Forum

[northernladuk]

An administrator is appointed and takes over the company. Initially it will trade as before as the administrator negotiates with debtors and evaluates the viability of the company as a going concern. He will reach out to all the contractors as creditors and in particular the ones who have ongoing contracts. The administrator will make a decision on whether and when the company will cease to trade. This won't happen without anyone knowing.

Or cheaply.

[BlasterBates]

I would have thought that if the company is dissolved it is no longer a legal entity, therefore any contracts it had are no longer in force or valid. They are only valid and enforceable for the period the company was actively "trading", i.e. pre dissolved status.

I'm not a lawyer so usual disclaimers apply. If I were you I would speak to one and explore your options (e.g. contracting directly from the date the company was dissolved?)

Would give you a clearer view of your options

An administrator is appointed and takes over the company. Initially it will trade as before as the administrator negotiates with debtors and evaluates the viability of the company as a going concern. He will reach out to all the contractors as creditors and in particular the ones who have ongoing contracts. The administrator will make a decision on whether and when the company will cease to trade. This won't happen without anyone knowing.

[Beeble]

Dissolved Company = Dissolved Contracts?

I would have thought that if the company is dissolved it is no longer a legal entity, therefore any contracts it had are no longer in force or valid. They are only valid and enforceable for the period the company was actively "trading", i.e. pre dissolved status.

I'm not a lawyer so usual disclaimers apply. If I were you I would speak to one and explore your options (e.g. contracting directly from the date the company was dissolved?)

Would give you a clearer view of your options

[BlasterBates]

If the company had registered insolvent, you would have probably been informed by the administrators, who would want to discuss how to proceed on the existing contracts. Therefore probably the company is still solvent and you simply need to chase the invoice.

[FIERCE TANK BATTLE]

I complain a lot that I have to submit an invoice weekly, and they don't use timesheetz so I have to print the bloody thing off, fill in a bunch of bollocks on hours, faff around getting the manager to sign it, and scan it in, and e-mail it to me (he usually forgets one of these) and it needs to be done so I can invoice before midday monday, so usually I harass them at 11am and have to scramble to e-mail it off and type up an invoice, every single week.

But I guess it's good that if things go tits up I won't lose as much money as 1 month invoicing with 30 day payment terms. My payment terms are 4 days!

[BlasterBates]

The client won't cease paying the agency. If the company goes into liquidation the administrators will simply chase the client.

The only short term way out would be to cancel the contract with the agency and sign a new one with the client. Only from the beginning a new contract could the client pay directly. Any work done on the current contract can only be paid by the agency.

It is unlikely that the client will cancel the contract with the agency unless they definitely know the company is insolvent, even then they would have to deal with the administrators.

[Lance]

Either way, don't send in any more invoices, they will only get added to the agency's balance sheet..

I don’t agree with the normally good malvolio. Get the invoices in. Even if you think they may not be paid, you aren’t owed unless you have sent the invoice.
Yes it will be added to the balance sheet but that’s better than not added.

Worthwhile suggesting to the client that they cease paying to a bust agency though.

[perplexed]

Had an agency go into liquidation mid contract around a decade ago. 9k owed - some idiots submitted their invoices every 3 months... 4 years later got a cheque for £147.

[DS23]

You need to get clarification from the recruiter / firm that hired you obviously about the reality of the situation. It might be some business name / ownership change or some other business the directors have decided to close. It seems a bit odd that they would even by trying to contact you (or do anything at all) if the business has gone belly-up so maybe it is not quite the disaster yet. However - I'd be informing the end client ASAP of the situation so that they are forewarned that you might not turn up for the next two weeks. Worst case is the last month and a half are lost. Forget legal - get another contract.

[malvolio]

Not a lot you can do, sadly, you will be someere a long way don the list of creditors for the failed (deliberately or otherwise) company. You could try approaching your client, but since you and they don't have a commercial contract in place that may not get you anywhere. You need to decide if you should keep working out the contract at risk, or give up and concentrate on finding the next gig.

Either way, don't send in any more invoices, they will only get added to the agency's balance sheet.

Don't suppose you're an IPSE Plus member? If you are, get in touch with them, since you will have free Agency Failure insurance.

[ApeShape]

I hope it's not an issue naming names, but earlier in the day I had an email from my the recruiter who I have been contracting for (CAPAXRM) to say that they hadn't received my invoice. This is a bit odd as it was definitely sent. So I email them back with the said invoice, and get a very prompt follow up to tell me that they're going to try and get it through. However, I'm apparently going to miss the previous months payment run due to this which would normally fall in the middle of the following month. Right....

Now, here's where the plot thickens and I'm seriously worried hence the post. Out of curiosity I did some googling on the recruiter. Alarmingly and to my astonishment, this lead me here and on to a thread about apparent previous manifestations of the business via various directors who seem to set up shop then go poof. Along with failed debt recovery attempts. Out of curiosity, I then head over to companies house on the company and what do I see? FINAL GAZETTE - Disolved. What the living hell.

Now, I really don't want to think what may be happening is happening especially as they're the ones that got in contact with me (and also responded within minutes) But is it? What if it is. I only have two weeks left of my current 3 month contract. Month 1 was paid on time (to my relief) month 2 is outstanding and month 3, well that's two weeks to go. I'll invoice end of month and theoretically get paid in August. Should I speak to my end client and inform this of the situation. Could this likely to backfire on me? Do I risk working two weeks in the knowledge that I may not get paid?

What the hell. Could I just be about to learn a very expensive lesson. If tulip hits the fan, am I basically stuffed. I assume going through the courts will just lead me to expensive recovery costs that fall on me and end up being unrecoverable let alone the actual fees.