Advice on agency not paying £1000's LTD comany after leaving due to health

bang_bang_3

Hello,

Hope this is in the right place. Sorry if its not.

Was contracting as a LTD company for a few years. But unfortunately about 4 years ago I had to stop due to health, not going deep into it but basically a mental breakdown.

Everything work wise was left unattended until about 18 months ago, when I tried several times to contact my agent that I worked through. This was basically requesting my outstanding money that I was owed. I have not heard anything back from any of my letters.

Due to the set up I had at the time, these are for several months work. A very substantial amount.

I have visited a solicitor about this, but was advised that I would have to fund it all myself. Not even a free first interview. Which is totally unaffordable at the moment or in the foreseeable future.

But since I stopped working, the LTD company has gone redundant at companies house.

BTW, the agency I was working though is actually a large reputable one in the UK, and they have received the funds from the employer/company (also very reputable & world wide company).

Hopefully some one here can shed a bit of light on this and point me in the right direction.

I'm still not fully back to full health, but realise that this really does need addressing ASAP. But I just seem to be hitting a brick wall on every angle I go at so far. Even the local CAB said they didn't think they could help me.

Hopefully some one here can help.

Thanks in advance.

A_fiend_for_life

Have the agency actually received the funds and passed them on to the management company?

It sounds like you need to know where the funds are sitting before you can progress this one. If on the off chance they are sitting with the agency, and I think the chances are slim, there might be a chance of getting them back.

However the unanswered letters bit gets me I suspect they might still have the funds. Why leave letters unanswered if they don't have the money.

Have you tried sending a letter by recorded delivery? Or phoning and asking to speak to senior management? Perhaps a director.

When you say the company has gone 'redundant at companies house' is there no possibility that they have changed their name? (I suspect that would be noted.)

There is something else that strikes me as strange is that you don't seem to have been informed that the management company went bust. I would have thought that when a company went into administration all parties would need to be informed. Have you received a tax invoice the relevant period?

bang_bang_3

Hi A friend for life,

There was no management company involved. I was the owner of my own ltd company at the time. It is my Ltd company that has gone redundant at companies house. Both the agency and the employing company are still going strong.

The reason why my Ltd company went the way it did was because I had no way of keeping it running due to lack of health and lack of income.

The agency definitely has this money. The reason why it accumulated with them to such an amount was due to the fact that I was having difficulty setting up a business bank account. So had asked them to hold on to it until that was sorted.

The reason why they would begrudge me the money is probably due to the fact i had to leave at short notice due to my health.

The recorded delivery option went the same way as the standard delivery letters.

Might try the recorded delivery to a higher / more senior person. Really not up to speaking to them directly.

Pennywise

You allowed your limited company to be dissolved. Presumably it was your ltd co that had a contract with the agency. Now that your ltd co is no longer in existence it can't chase for monies owed to it. Even if agency paid money to your ltd co, as it is dissolved, all its assets (including debts) are bona-vacanta and pass to the Crown. I don't think there's anything you can do now except perhaps apply for your own ltd co to be restored to the Companies House register, get all its formalities/legalities back up to date and then start chasing for payment again. Your ltd co was a different and distinct legal entity from yourself. You personally have no claim.

alanshave

Pennywise wrote: »

You allowed your limited company to be dissolved. Presumably it was your ltd co that had a contract with the agency. Now that your ltd co is no longer in existence it can't chase for monies owed to it. Even if agency paid money to your ltd co, as it is dissolved, all its assets (including debts) are bona-vacanta and pass to the Crown. I don't think there's anything you can do now except perhaps apply for your own ltd co to be restored to the Companies House register, get all its formalities/legalities back up to date and then start chasing for payment again. Your ltd co was a different and distinct legal entity from yourself. You personally have no claim.

Not true, it is the individual that has the contract with the employment agency.

Call the Employment Agency Standards Inspectorate on 0845 955 5105 for advice on the best way to proceed.

All agencies are governed by the Employment Agencies Act 1973 which contains the following:

An agency employing you to do temporary work must give you written terms, and must pay you, even if it has not been paid

An agency which collects your pay from an employer must pass it to you within ten days, unless you request otherwise.

The REC may also be able to help if the agency is a full member, see www.rec.uk.com.

Pennywise

alanshave wrote: »

Not true, it is the individual that has the contract with the employment agency.

Call the Employment Agency Standards Inspectorate on 0845 955 5105 for advice on the best way to proceed.

All agencies are governed by the Employment Agencies Act 1973 which contains the following:

An agency employing you to do temporary work must give you written terms, and must pay you, even if it has not been paid

An agency which collects your pay from an employer must pass it to you within ten days, unless you request otherwise.

The REC may also be able to help if the agency is a full member, see www.rec.uk.com.

The OP said that he contracted through his own ltd company - he may have a contract with his own company, but it is his company that has a contract with the agency.

olly300

alanshave wrote: »

Not true, it is the individual that has the contract with the employment agency.

Call the Employment Agency Standards Inspectorate on 0845 955 5105 for advice on the best way to proceed.

All agencies are governed by the Employment Agencies Act 1973 which contains the following:

An agency employing you to do temporary work must give you written terms, and must pay you, even if it has not been paid

An agency which collects your pay from an employer must pass it to you within ten days, unless you request otherwise.

The REC may also be able to help if the agency is a full member, see www.rec.uk.com.

What you stated is correct if you are temp and are paid through the agency by PAYE but completely wrong in the OP case.

The OP is a director of a limited company and so while they may sign paperwork, they are doing it on behalf of the limited company not for themselves as an individual.

The agency only has an agreement with the company and if the company is dissolved then the agency cannot pay money to it.

The OP needs to do what Pennywise said in getting the company restored, and then start chasing the payment. All debt collection should be done in writing so if you have to take the agency to court then you have proof of the debt. This website may help: http://www.payontime.co.uk/

alanshave

Regardless of the debate I still think the OP should try the Employment Agencies Standard Inspectorate and/or the REC in order to get professional advice.

Surely if the agency was a responsible business then they could at least communicate and look to resolve it quickly, perhaps by asking the OP to consider being paid retrospectively on a PAYE basis, if possible.

Wouldn't mind one guess at the agency, wonder if it rhymes with Pays.....

bang_bang_3

Hi,

Thanks for all your replies. I do believe Alanshave has come up with the right angle to approach it.

The reason why agencies prefer dealing with limited companies, is so as they dont have to worry about the admin side of it all. But when the IR35 rules all kicked off, I moved from an "umbrella company" / "management company" to start my own company. The main reason for getting paid through a Ltd company from a contractors point of view is because of the hassle with trying to claim tax back through the PAYE system for your outlay is a pain, plus of course the agency pay your ltd company approx 10 -12% as they don't have to worry about it.

The original contract was with me as a job offer, then when we discussed the payment arrangements, that's when I was told to forward them my Ltd company details. I did start off the contract using a management company. Then started my own company. There was never any paperwork involved in the change over.

Hopefully I'll be able to get hold of some 1 at the Employment Agency Standards Inspectorate either tomorrow or Monday and they might be able to advise me further.

Thanks every one for your help so far.

bang_bang_3

alanshave wrote: »

Regardless of the debate I still think the OP should try the Employment Agencies Standard Inspectorate and/or the REC in order to get professional advice.

Surely if the agency was a responsible business then they could at least communicate and look to resolve it quickly, perhaps by asking the OP to consider being paid retrospectively on a PAYE basis, if possible.

Wouldn't mind one guess at the agency, wonder if it rhymes with Pays.....

lol

No. It's not them. but it does rhyme with something water does in your kettle when it reaches 100 C