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I'm worried I won't get paid

2 replies

fruitstick · 24/10/2010 12:47

Long story. I am a freelancer and have been on a 3 month contract recently for a company. I have a signed contract which outlines my responsibilities and daily rate etc. I have to invoice at the end of each month and will be paid within 30 days. I have been paid for my first month (on the 30th day after invoice) and am due to be paid for September this week.

However, the job itelf has been an absolute nightmare. The CEO is a bit of a nutter, doesn't know what he's doing (start up company) and plays fast and loose to say the least.

Since I joined 9 weeks ago the whole management team have left, none of them have been paid, several are suing them.

Several other companies he has contracted work from have been cancelled without being paid (they didn't have signed contracts) or have had real difficulties chasing payment.

The person who hired me is one of the people who has left. The CEO doesn't actually like me very much as he has refused to take a lot of the advice I was employed to give. Lots of tasks I have been asked to do he has cancelled at the last minute (after I have done all the work).

He announced last week that he has contracted a new consultant to basically do what I was taken on to do. He has yet to tell me that I am no longer required but I suspect he will.

However, my nervousness is that he will let me go without paying any of my outstanding invoices - which will be £6,000 in total.

His attitude so far with the people who have walked out has been that 'nobody can afford to sue him'. Hmm

Surely he hasn't got a leg to stand on if I have a signed contract. But I am absolutely skint so actually can't afford legal bills to chase the money.

If the money doesn't materialise this week, what shall I do? I still have 4 weeks of my contract left and I don't want to give him any excuse to accuse me of being in breach of it.

OP posts:
friendlybear · 24/10/2010 16:45

make sure that you are clear / right about when you are to be paid ie ascertain with precision exactly when you should be or should have been paid

if then not paid on that day write a notice to the employer setting out his breach (ie non-payment) and stating that if not remedied within 7 days (say 3 or 5 or 7) you will understand him to be in repudiatory breach and to no longer require your services as employee

if still not remedied within that timetable in theory you should be free to walk without comeback

then sue his bottom for the outstanding fees (including loss of income for the period after you walked); this should not really require lawyers

I have no idea if an employment tribunal would deal with such claims - I suspect they may do in which case use since the whole process is designed not to require lawyers; ask the CAB for advice
you have to move quickly though ET time limits are v short

your post indicates that you are not in fact an employee

alternatively sue in the county court: issue proceedings (ie go to court and fill in a claim form and pay fee and serve on your employer)

on the claim form write down the claim pretty much as per your post but spelling out exactly what money he owes you and how calculated

add claim for interest (just say "I also claim interest: section 69)

as noted above when claiming you can include not just past loss but any future loss as a result of walking out ie the income you would have earned if you had stayed in the job if the reason you walked was his failure to pay / honour the agreement

just make sure it's all v clear, unemotional, accurate, precise, using ordinary language as per your post; leave out anything irrelevant and include all relevant

if it won't fit on to the claim form just write "see particulars of claim attached" on the form and write out the claim on a seperate piece of paper headed "particulars of claim"; ideally type but don't worry if can't

ask the court office for advice on the procedure and/or CAB or equiavlent

also consider approaching Bar Pro Bono Unit (google to find address) and ask them to take your case on

all info required should be on the internet somewhere ....

the only bit to worry about is "pre-action protocol" - you need to check if there is such a protocol relevant to your claim and if there is follow it
this involves writing a letter before action
etc

another bit to worry about is suing the right party: this will presumably be obvious from your contract

however in practice if the employer is some doomed start-up company it may be bust by the time you get to judgment and that may prevent you recovering any money anyway

bear in mind that the individual (who may be loaded) is not necessarily your employer if (as is normal) he trades through a limited company

if you sue the wrong party you will have a major problem so take care with this bit

once proceedings are underway you will have to do exactly what the court says exactly when they say

xxxx

fruitstick · 24/10/2010 16:55

thanks friendlybear, that's really helpful.

am going to print it out now and put it in a safe place Wink.

My last invoice was itemised (days worked per week and projects worked on) and he acknowledged receipt. He also asked for a cap on my hours this month as the invoice was too high.

However I am taking that as tacit approval of the actual invoice.

Hopefully, I'm just worrying necessarily and he will pay up.

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