Working for an agency

Becles

Not really sure of the best place to put this! Mods - feel free to move it.

My husband has a second job as a self employed DJ/mobile disco. He was contacted by an agency, and was doing ad-hoc work for them. For one off gigs, the party organiser paid the agency a deposit (their cut of the fee), and gave my husband cash on the night of their event. This worked well.

The agency then got a contract to supply all the disco's to a local sporting venue that does hospitality. The sporting venue didn't want to pay cash on the night, prefering to pay the agency so my husband was told he would be paid by regular cheque by the agency. He's still working on a self employed basis rather than employed.

Problem 1: The agency have said my husband cannot be paid by them until they get paid by the sporting venue. However, they don't chase up unpaid invoices, and just wait until the sporting venue get round to paying them. Consequently my husband hasn't been paid since June. He thinks this is unfair, as the agency-venue relationship is nowt to do with him.

Problem 2: The lack of income is causing financial problems as he budgeted for that income coming in and now he can't meet debt repayments and is being hammered by charges.

Problem 3: Husband has told the venue that he's packing in working for the agency after Christmas (would be unfair to drop the venue in it this close to the party season). The venue have suggested they will employ him direct, and as an ex-credit controller, I know how to chase up invoices and get paid on time! However, the agency have said that if husband goes and works for the venue direct, they will sue him for all his private earnings.

Side issue: could husband get around problem 3 by changing his business name. As DiscoA is employed by the agency, he could dissolve that company, and then start up DiscoB and go and work for the venue?

Lots of questions, but if anyone can help with any bits, I'd appreciate it.

LittleVoice

Regarding dissolving DiscoA and starting DiscoB - if you are writing about limited companies then if the agency were interested in knowing the ownership of the company they could find out from companies house and it presumably would show that the directors and ownership was the same.

And don't DJs work as a named individual rather than a company name? Would he change his name too?

Becles

There are no limited companies involved. He's just registered as a sole trader, trading as DiscoA.

No - mobile disco's are known by the disco name rather than the indivduals name.

The venue want him to stay working there as they are very pleased with his work, and he likes working there. He just doesn't want to work for the agency anymore due to non-payment of the money he has earned.

brightonman123

any true agency should pay hubby regardless of whether the customer pays them- not his problem?

Any

Hi Becles,
When your husband started to work for the agency, they must have asked him to sign a contract.
You need to find out what does it say in the contract about taking clients with him once he leaves (many companies have a such a line in) and what does it say about payment to him.
Let us know what does it say.
If there is no contract at all, then the agency cannot sue him for anything IMO.

Vomityspice

As the 'agency' introcuded you to the client they may have a legimate interest, however, their contract is with the sporting venue organiser.

If the contract (to provide discos) is for a fixed term then the agency would need to sue the organisers (not you!) if they breached.
The organisers are entirely free to employ who ever the like (subject to any contract restrictions)
You are entirley free to server your working relationship with the agency at any time (assumining you haven't signed up for a fixed period - unlikely as the agency will undoubtly want to have no obligations to you!)

You don't need to 'get around' anything. Unless your husband has agreed a ongoing contract (i.e. I will work for you for 12 months) with the agency then he is under no obligation (3rd parties are not parties to a contract - I know this isn't entirely accurate (3rd Parties Act) but that doesn't apply here).

The agency is talking rhubarb, the only problem is that they don't know it!

Becles

There was no contract of employment as such.

Each booking has a sort of mini-contract on the bottom, but there is nothing on there to say about him being sued if he goes to the client direct.

He has been verbally told that if anyone at a disco asks about a future booking, or someone later gets in touch to say they were at an agency arranged event, then the booking should go through the agency so they can take a cut.

Any

Becles wrote: »

There was no contract of employment as such.

Each booking has a sort of mini-contract on the bottom, but there is nothing on there to say about him being sued if he goes to the client direct.

He has been verbally told that if anyone at a disco asks about a future booking, or someone later gets in touch to say they were at an agency arranged event, then the booking should go through the agency so they can take a cut.

Then you have nothing to worry about. No contract - no pay - offer of job - take it! As easy as that. If the venue signed up "one off" disco from the agency - they are not obliged to take any more through the agency.
If your husband never signed any contract - he is free to take up any job he wants.
It is highely unlikely the agency will take you to the court, as it would be bad press for them as the fact that they don't pay their people would definitely come out!!

However, just make sure that if the venue didn't pay the agency, they will pay your husband!! You need to be carefull - he migh p*** off the agency just to find out that it wasn't worth it!
Good luck
xx