Breach of contract for services

JonStubberfield

I worked as a consultant on a 12 month contract... I actually worked for the same company for 5 years as they continued to extend the contract on a yearly basis.

I had to work exclusively for this one company so that there would be no conflicts of interest, this is totally understandable.

The contract did state that either party could terminate the contract with 4 weeks prior written notice.

Back in June it was terminated with immediate effect! No notice.

The company still owe me money for consultancy work for the preceeding month as well as the work completed up until the date of termination.

So the question is, do I seek compensation for the 4 weeks notice period that I should have got but didn't, or should I seek compensation up to the end date of the contract (September).

Anybody had a similar circumstance at all?

isplumm

Hi,

Is your consultancy through your own limited company?

Do you work through an agency or direct?

What does your contract say about them getting rid of you if no work available (if anything?)

Mark

JonStubberfield

Hi Mark.

I didn't set up a limited company I just registered as self employed. I was originally employed by them and then 2 years after commencing full time employement with them we agreed that I would work as a consultant instead and forfiet my salary to be paid on like a commission only basis.

It was not through an eployment agency if that is what you mean?

The contract says that they didn't have to provide me with work. But they held the key to systems, equipment and licenses which once removed prevented me from working with existing clients and I was encouraged to complete work off my own back under the agreement.

They actually sent an email to my clients telling them that I no longer worked for them on the day that they terminated my contract and cut off my access to systems.

keyser666

Have you sent them an invoice for the outstanding? If not do so. Give them 14-28 days to pay, whatever your normal payment terms were.

Send by email and snail mail. Send it from 2 separate post offices getting proof of sending.

If no comms received or payment by the date of payment terms, send them another letter stating it is a letter before action, conatining all the relevant information, invoice mumbers, weeks relating to etc etc. Again give them say 14 days, make sure they are aware you will take this to court.

If again no response, submit a claim via MCOL. Dont forget to add on the £40 late payment fee and any interest calculated, which is still 8% p/y iirc.

Great source of information is https://www.safecollections.co.uk

if you just begin the process and let us know where you are we will help with the LBA etc when the time comes

JonStubberfield

keyser666 wrote: »

Have you sent them an invoice for the outstanding? If not do so. Give them 14-28 days to pay, whatever your normal payment terms were.

Send by email and snail mail. Send it from 2 separate post offices getting proof of sending.

If no comms received or payment by the date of payment terms, send them another letter stating it is a letter before action, conatining all the relevant information, invoice mumbers, weeks relating to etc etc. Again give them say 14 days, make sure they are aware you will take this to court.

If again no response, submit a claim via MCOL. Dont forget to add on the £40 late payment fee and any interest calculated, which is still 8% p/y iirc.

Great source of information is https://www.safecollections.co.uk

if you just begin the process and let us know where you are we will help with the LBA etc when the time comes

Hi Keyser thanks for the response. I've sent the invoices in June. I've chased the invoices and slapped on the statutory limit of £70 per invoice for late payment as well as the 8% plus base rate interest. I've not heard of those claim services so I'll check them out, thank you for the advice.

My main query is regarding the level of compensation I should seek. I'm assuming that I can charge for the 4 weeks notice that I was unable to work due to the way that this company handled things and have worked it out based on an average commission made in the preceding 3 months. I'm just wondering whether I should go for the 4 weeks notice for the compensation or until the intended finish date of the original contract which would have been 31st August. Considering I didn't gain new employment until the commencement date of the 2nd September. An I just being greedy or should I deserve this?

The plan is to use the money claim service and go though the courts.

fruitedeli

JonStubberfield wrote: »

Hi Keyser thanks for the response. I've sent the invoices in June. I've chased the invoices and slapped on the statutory limit of £70 per invoice for late payment as well as the 8% plus base rate interest. I've not heard of those claim services so I'll check them out, thank you for the advice.

My main query is regarding the level of compensation I should seek. I'm assuming that I can charge for the 4 weeks notice that I was unable to work due to the way that this company handled things and have worked it out based on an average commission made in the preceding 3 months. I'm just wondering whether I should go for the 4 weeks notice for the compensation or until the intended finish date of the original contract which would have been 31st August. Considering I didn't gain new employment until the commencement date of the 2nd September. An I just being greedy or should I deserve this?

The plan is to use the money claim service and go though the courts.

Claim all the way until end of August. Claim interest. Claim for distress caused to you. Claim claim claim. These employers are taking the !!!!.

agrinnall

I think any attempt to claim for anything that's not in the contract is doomed to fail. So claim for the outstanding payment and for the unpaid notice period, plus interest. Your ex-client was not in any way responsible for you not finding more work until later.

TrickyDicky101

If you worked full time for this employer then you weren't, IMO, self-employed, you were an employee of the company. It doesn't matter whether or not you were on company payroll (PAYE) you are still an employee with all the costs and expenses that that entails. Just be wary about that as it could bite you on the backside (although not as much as the company).

ValHaller

Re the claim for 4 weeks notice, I think you would probably win such a claim. But as you were on commission only, I think you might find that your damages amounting to zilch.

JonStubberfield

Still undecided.

Maybe I'll lay the claim as 3 counts;

1, Unpaid/overdue invoices.
2, Compensation up to the intended end date of the contract.
3, Where 2 is deemed unreasonable, 4 weeks notice period based on previous earnings.

Therefore it would be #1 PLUS #2 OR #3...
Just let the judge make the call I guess.

agrinnall

You can try it, but I feel 2 is a waste of time, and it's possible that the client might think that if you're playing games then they will too and refuse to pay anything under 3.