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...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
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