HELP!!! A unique Situation?

ACM_3

Hi all. I am in a completely unique situation it seems....


Since Mid October last year I have been operating as a recruitment consultant on a commission-only basis, working from home. Before this I was employed as the same full time but on a basic salary of £35K per annum. I took the commission only opportunity for the high earning potential (a large percentage of the fees I generate), and to give me flexibility of not having to work full time and working from home around my home and family life.....

I was attracted to the position by an executive search firm, who my new company paid a fee to as well.

It was agreed before I left my old position that I would be paid a small (about 1400 a month) 'retainer' or consulting fee for the first 2.5 months (until Christmas).

When I got half way through february I still hadnt been ableto generate any business with this organisation, and, concerned about feeding my family, I began to doubt as to whether I was cut out for this industry. I therefore contacted the director of the new company to say that I wished to terinate my contract with them and fin an appropriate 'normal' position out of the industry with immediate affect. He responded as no problem, but insisted that I meet him face to face to discuss. When we met, he threatened me with legal action to recover the'r initial investment as things hadn't exactly worked out according to my business plan. He said that I had three options:

1. To remain with them and work (commission only of course) and rethink my decision to leave
2. To pay them back the retainer which they paid me to tempt me away from full time employment. in the first place and then be allowed to leave. This wasn't an option as I have been working commission only and am skint!
3. To not pay anything and leave but they would take me to court for all of their costs for advice, their back office costs, the recruiter fee that got me there in the first place and the original retainer etc, which all amounts to around £25k - they reckon.

Left with no choice I agreed to go home, and give it a last shot.

I went home, angry of course..... But gave it a shot. Now I am over a month later, still with no business generated, and no money coming into our household..... This is vastly concerning as I have no savings either.....

I have made all of the above clear to my family, and have spoken to this director to say that, I've had bad luck, haven't been able to get motivated working in a relaxed environment, but more importantly have found that my market has gone quiet and is struggling.....

Now in exactly the same situation I am concerned....
I must point out however that I was paid by my own limited company as a limited company contractoir, as before I started I was advised to agree this and so I did.

Do they have any grounds to sue me??

Any help/advice would be GREATLY appreciated.....

Thanks in advance

Mr Worried

emsywoo123

1. Are you registered as self employed?

2. What does your contract (If you have one-there must be something relating to this "retainer") say in this instance?

TrickyWicky

£25k? Where on earth did they pluck this number from?

So you're working for your own self employed company as per their advice but they want to sue you personally? - Sounds like a load of BS if you ask me. You say they head hunted you, sounds like a scam - they either thought you'd make them a load of money or someone somewhere wanted you out of your last job for some reason.

I'd never work for a commission only job. Commission only means they don't have enough income to pay you a regular wage. That in itself means there is no business. In the USA it's a bit different because despite their debt there is still money floating about, over here the economy is restricted and thus everyone is trying to either save money or get something for nothing. Guess where you put yourself for them?

As for suing you for the finders fee they paid to find you thats a load of malloney. They chose to spend that not you, they had no guarantee you would take their 'job' thats their problem. Yes you're shot for the retainer and you should of seen that coming when you realised you needed one.

If I were you I'd go sick or just stop doing their work and find something else. Seeing as you're working for yourself with no-one watching over your back, how are they going to know what you're doing? IF you get another another full time job elsewhere, how are these cowboys going to know you're lying when you keep telling them you can't generate any business?

heretolearn_2

It really depends on your contract.

What does it say about notice of finishing the contract, and any clauses relating to clawback of their expenses.

If there's nothing in the contract, they can't do anything.

ACM_3

emsywoo123 wrote: »

1. Are you registered as self employed?

2. What does your contract (If you have one-there must be something relating to this "retainer") say in this instance?

1. I'm as a limited company through them

2. There's nothing about clawback int he contract, the contract is a page long. It has 10 points on it, and 9 of these say what they will provide, the last one says that whatever I bill I am entitled to 60% of it but unfortunately this hasn't happened yet.

emsywoo123

ACM wrote: »

1. I'm as a limited company through them

2. There's nothing about clawback int he contract, the contract is a page long. It has 10 points on it, and 9 of these say what they will provide, the last one says that whatever I bill I am entitled to 60% of it but unfortunately this hasn't happened yet.

I do not really understand point one? Are you self employed as a sole trader, or employed as a director of your own company, or employed by them?

ACM_3

thanks for these answers though guys any other expertise would be great

ACM_3

emsywoo123 wrote: »

I do not really understand point one? Are you self employed as a sole trader, or employed as a director of your own company, or employed by them?

Sorry!
I am employed as a director of my own limited company.
My limited company were paid the retainer by them for 'consulting services' last year.

I asm also self-employed sole trader with another position (my wife and i have our own business) elsewhere - is that relevant?

emsywoo123

ACM wrote: »

Sorry!
I am employed as a director of my own limited company.
My limited company were paid the retainer by them for 'consulting services' last year.

I asm also self-employed sole trader with another position (my wife and i have our own business) elsewhere - is that relevant?

Thanks

Tricky-there is no reference to this retainer in your contract? No correspondence about what was expected in return? Are you a member of Fed of Small Business or equivalent?

I personally think they are on a hiding to nothing, BUT I would certainly take advice on it, not necc from here. However, more knowledgeable folk will be along soon

paddyrg

So is the contract with you or your ltd company? If it is with your ltd company, fold the company and tell them to whistle!

Evilm

paddyrg wrote: »

So is the contract with you or your ltd company? If it is with your ltd company, fold the company and tell them to whistle!

#

I think I agree with the above! I'd take advice on whether the above would work or whether they would be able to still pursue you personally as a director of the company.

It depends how the 'contract' is written.