Employer breach of contract
Discussion
Hi,
Here's the gist:
Was made redundant in December to reduce costs, but taken back on as self-employed contractor (AKA cost of paying tax and NI now on me).
The contract states that invoices will be paid within 14 days. That date passed at the end of last week, and I (and my fellow employees-cum-contractors) have not been paid. There has been communication between the parties asking as to when this might happen, but no date has been set as to when we will get our money for January's work. Merely 'soon': when the money from a client ends up in the company account.
The short of is that we no longer wish to work here - effectively constructive dismissal. The nice gent at Acas was concerned at how we are being treated like employees, but our status is self-employed. The contract we signed stated that we were bound initially to two months, then rolling month by month. The notice period is four weeks. The employer has breached this contract; what comeback do we have?
Yet with no pay, we have no inclination to continue working. We are being civil and trying to be understanding. We know the business has a cashflow issue and we have taken cuts in pay and hours, but we don't want to be seen as soft touches.
It's a really awkward one. Any advice genuinely welcomed.
Here's the gist:
Was made redundant in December to reduce costs, but taken back on as self-employed contractor (AKA cost of paying tax and NI now on me).
The contract states that invoices will be paid within 14 days. That date passed at the end of last week, and I (and my fellow employees-cum-contractors) have not been paid. There has been communication between the parties asking as to when this might happen, but no date has been set as to when we will get our money for January's work. Merely 'soon': when the money from a client ends up in the company account.
The short of is that we no longer wish to work here - effectively constructive dismissal. The nice gent at Acas was concerned at how we are being treated like employees, but our status is self-employed. The contract we signed stated that we were bound initially to two months, then rolling month by month. The notice period is four weeks. The employer has breached this contract; what comeback do we have?
Yet with no pay, we have no inclination to continue working. We are being civil and trying to be understanding. We know the business has a cashflow issue and we have taken cuts in pay and hours, but we don't want to be seen as soft touches.
It's a really awkward one. Any advice genuinely welcomed.
Sir Bagalot said:
The writing is on the wall as cashflow appears to be tight. Looking elsewhere should be top priority.
Aye, it has. I have other contracts lined up - that is primarily why it would be advantageous to leave immediately. I can get started on new work, rather than see out the notice period and end up wondering when that money will appear, let alone that for January...You're not really self employed (you seem to be employees in all but name). Also if you're self employed I'm fairly sure you can't claim for constructive dismissal (although possibly you could claim for breach of contract). There is a lawyer on here called breadvan72 who knows his employment law, hopefully he will see ths and give you some accurate advice.
I would advise you to cut your losses and take the new work. Depending on the amount you're owed by your current employer it might be worthwhile suin him via MCOL.
I would advise you to cut your losses and take the new work. Depending on the amount you're owed by your current employer it might be worthwhile suin him via MCOL.
Edit: cheers Countdown. Hadn't spotted your post earlier since I'm naughty and run an ad blocker.
You're right that we can't file for constructive dismissal due to our employment status: Acas advisor was mentioning this, but once I mentioned this, all his advice was moot.
I feel stuck between a rock and a hard place - between being a good egg, not wanting to get too pushy or look needy or money-grabbing , and sticking up for my right to be paid the money I'm owed for the work I have completed.
You're right that we can't file for constructive dismissal due to our employment status: Acas advisor was mentioning this, but once I mentioned this, all his advice was moot.
I feel stuck between a rock and a hard place - between being a good egg, not wanting to get too pushy or look needy or money-grabbing , and sticking up for my right to be paid the money I'm owed for the work I have completed.
Edited by askew on Wednesday 18th February 23:30
Sounds like you've been enough of a good egg taking pay cuts and reduced hours, then coming back from redundancy to work to their dodgy self-employed terms.
If you can be bothered I would think about why the company is failing. Poor management?
Unless you get a share of the company profits, I can't see why you should take any further punishment. If you have the chance of a bona fide job/contract then move on immediately.
If you can be bothered I would think about why the company is failing. Poor management?
Unless you get a share of the company profits, I can't see why you should take any further punishment. If you have the chance of a bona fide job/contract then move on immediately.
If you are not being paid, you do not have to work. A failure to pay fees invoiced is sufficient as a general rule to deem a fundamental breach of any contract of employment.
The ball is in your court, you can invite them to pay by 4pm today or cease working for them (which does not mean you are not entitled to your fees for the work undertaken to date either).
The ball is in your court, you can invite them to pay by 4pm today or cease working for them (which does not mean you are not entitled to your fees for the work undertaken to date either).
t trick on you, which deserves a 'I'm self employed, by me, not by you. Now fGassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff