Self employed problem

DevilsAdvocate1

Thanks everyone I really appreciate you taking the time to reply to me.

I definitely won't be working for them again. Its not the first time its happened and its just not worth the hassle. I suspect that they have cash flow problems and are using this as an excuse to try to get out of paying.

If I go to the small claims court and I lost, would they be able to make any counter claims against me. Its been indicated that I would have to pay all their legal expenses if I lost and I wondered if this was true.

steampowered

If the claim is for less than £10k, it is allocated to the small claims track, which means that legal costs are not awarded. You should only expect to pay their legal costs if you lose if the claim is for more than £10k.

The court has the power to award legal costs if it feels that one party has behaved particularly unreasonably, but in small claims track this is only used in a very small percentage of cases to punish vexatious litigants.

If you start a claim they are able to make a counterclaim against you. However they would be required to prove that counterclaim to succeed - e.g. they could counterclaim for £1,000 rather than the £750 they are using now, but would only get awarded that if they could prove to the judge that (i) they suffered £1,000 of actual financial loss as a result of the work being slightly late or (ii) they were entitled to £1,000 under the agreed terms of the contract between you and the company. It sounds unlikely they could prove either of those things.

If you search through the forums or elsewhere (take a look at CAG which has a lot of threads about small claims court proceedings), you will generally find that people who start valid claims tend almost always get a very good result - in the majority of cases the Defendant settles once they receive a claim and realise their bluff has been called; and in other cases people who bring valid claims usually win in court.

DevilsAdvocate1

Thanks, that's really helpful. He made it sound as though I could lose thousands. Think it was a veiled threat, I certainly felt threatened. He said he'd been taken to the small claims court 5 times in the past and he alway won and always made sure that he then claimed for expenses.

We are having one last conversation on Monday and depending on that I will start a small claims process. I have now received my expenses, so thats one less thing to worry about.

I also made a slight error and invoiced for one item twice, so the claim is now £700. They have told me that their records show they "only" withheld £500 so not sure where the other £200 is. They are not sure either and this is one thing we are going to clear up on Monday.

I really hope I don't have to take it further. The really odd thing is that he seems to think I'll continue working for him after this.

DevilsAdvocate1

Just an update. They've overturned some of the deductions after I supplied some evidence that they were wrong. Most still stand though. Very frustrating as I was out of the country for 4 weeks on holiday and know for a fact I sent all work before I left. Who would be doing work on holiday?

Yet, according to their records about half of these jobs were late because I supposedly sent them on dates when I was on holiday. I've queried this and been told that their systems cannot be wrong and the deductions stand.

Want to start court proceedings but can't until I know the exact amount I'm owed. Apparently they are prepared to negotiate on the ones where they deducted 50%.

Comms69

DevilsAdvocate1 wrote: »

Just an update. They've overturned some of the deductions after I supplied some evidence that they were wrong. Most still stand though. Very frustrating as I was out of the country for 4 weeks on holiday and know for a fact I sent all work before I left. Who would be doing work on holiday?

Yet, according to their records about half of these jobs were late because I supposedly sent them on dates when I was on holiday. I've queried this and been told that their systems cannot be wrong and the deductions stand.

Want to start court proceedings but can't until I know the exact amount I'm owed. Apparently they are prepared to negotiate on the ones where they deducted 50%.

you have 6 years to claim so plenty of time. HOWEVER don't sign a full and final settlement agreement