Reply to: Haybrook/SQCP in liquidation

[whatgoesaround]

This recruitment agency is currently going through Liquidation with the Contractors' unpaid invoices going down with it. The strange thing is that the CEO or one of the Directors just set up a new recruitment company. Do you guys think this is ethical?

The owner has setup a new recruitment agency called 'Potton Recruitment Ltd', which he did just before putting multiple Ltd companies into Insolvency/ liquidation.
I know quite a few contractors who are affected. I note also the Director(s) who ran these companies have also now removed their credentials from LinkedIn.

[krytonsheep]

What an absolute shyster considering I have over £30k invoices going down with it.

That is very bad. I've worked via SQCP in the past and they were alright, but looking at their recent accounts I might have used invoice insurance just incase.

[_V_]

What an absolute shyster considering I have over £30k invoices going down with it.

But this Tory govt say there is no risk being an IT Contractor, you are just a disguised employee taking zero risk and avoiding taxes. None of you are real businesses.

[eek]

Yes, a matching fee and an ongoing fee for the first year of the assignment.
The client should be interested in transparency and most of the income reaching the contractor, not the convoluted ways that you do business today.

No (less) money in it and more work

It ain't going to happen.

[GigiBronz]

So, more along the lines of a dating agency - both parties pay a fee to be matched up and then they agree their own terms of engagement?

Yes, a matching fee and an ongoing fee for the first year of the assignment.
The client should be interested in transparency and most of the income reaching the contractor, not the convoluted ways that you do business today.

[newmove]

I don't suppose you have IPSE membership?

No, I don't.

[ladymuck]

Clients should change the nature of the service so that the client pays the contractor directly and then agency gets it's cut from contractor. It should be a more honest relationship. Also it would put an end to the many games in the business.

The way the agency intermediate the contract and keep control of the business it's old fashion and a proliferation of the "old boys club".

The payment management is nonsense especially in these times when everything is digitalised. And I would not mind a long waiting time if the client is solvent. Not a thing that you could say about many agencies atm. Especially today.

What would stop an agency with small overhead and rogue practices declaring bankruptcy while syphoning fees for 1-2months from 100-200-300 contractors? Nothing.

So, more along the lines of a dating agency - both parties pay a fee to be matched up and then they agree their own terms of engagement?

[ladymuck]

What an absolute shyster considering I have over £30k invoices going down with it.

I don't suppose you have IPSE membership?

[newmove]

What an absolute shyster considering I have over £30k invoices going down with it.

[saptastic]

Yeah nothing to stop anyone doing this. Companies house will show liquidated or dissolved companies against their name. Some may do on purpose some a circumstance of business. But I have also seen some directors use different variations of their name so companies are not clearly linked.

[GigiBronz]

Clients should change the nature of the service so that the client pays the contractor directly and then agency gets it's cut from contractor. It should be a more honest relationship. Also it would put an end to the many games in the business.

The way the agency intermediate the contract and keep control of the business it's old fashion and a proliferation of the "old boys club".

The payment management is nonsense especially in these times when everything is digitalised. And I would not mind a long waiting time if the client is solvent. Not a thing that you could say about many agencies atm. Especially today.

What would stop an agency with small overhead and rogue practices declaring bankruptcy while syphoning fees for 1-2months from 100-200-300 contractors? Nothing.

[courtg9000]

I worked through this outfit a lot back in the day.
They were alright back then, never had an issue.
Never had the top man down for a fly by nighter.
I think something serious has happened to business.
My first guess would be a client going bust with quite a backlog of aged debt to SQCP.
Directors pheonixing unfortunately happens all the time. Not a lot you can do unless fraud or similar illegals can be proven. I have seen contractors use pheonixing too.
Lots of recruitment agencies have used this trick in the past. Its nothing new for the sector.

[cojak]

What stops all other recruitment agency directors from adopting these sharp practices and getting away with it. This one currently has a residential development to his name. It is a shame as I know a lot of contractors impacted.

Then there will be a good story to tell when contractors perform their due diligence of that recruitment agency in future, won't there?

[newmove]

What stops all other recruitment agency directors from adopting these sharp practices and getting away with it. This one currently has a residential development to his name. It is a shame as I know a lot of contractors impacted.

[northernladuk]

He's got the knowledge of how it all works, knows what can go wrong and the databases of the dying company. Get rid of his old company and it's mistakes and start with a clean sheet. Why wouldn't he?

It would be unethical if he just used the old one to rack up debts but line his pocket and he's just going to start again. If there were factors outside his control that pushed his first company under then of course you'd give it another stab.

Depends on the reasons I guess.