I am self employed and was sub contracted by someone I reguarly work with to work for a company. The company now claim to have 'a cash flow crisis' and dont seem to be in any rush to pay.
I dont believe my employer is doing enough to get on their case. I dont feel like its my place to deal with them directly, and I dont want any bad feeling with my regular employer. What can I do?
2006-10-13 23:45:53 · 20 answers · asked by Anonymous in Business & Finance ➔ Small Business
Since you have a 'contract' with your employer, not the employer's customer (who is not paying) I do not think you can sue the employer's customer. If you are involved in work on a building or other real estate you could place a lien on the property. This would mean that the property could not be sold without you being paid off. In fact, given certain waiting periods, you might be able to actually force a sherriff sale of the property to get your money. Having a lien placed on a property is not something an owner would like, and first you file 'notice to lien' so that may get the owner to pay.
2006-10-14 00:20:17 · answer #1 · answered by victorschool1 5 · 0⤊ 0⤋
This is a difficult one as the rules are different for persons who are self-employed and those who are employed.
Are you really self-employed or is that what your company tell you, perhaps to avoid such situations as this? For example, do you have a regular pay packet, that is reviewed regularly and has tax deducted? Do you take orders from a manager as to what you need to do on a daily basis? Are you a part of a pension scheme, union, social club which would indicate integration into the company? Do you use the company tools/van/desk/phone for your daily work? If you were to leave, do you have to give notice or would you be entitled to redundancy pay? Do you have a continual contract or one for a specified period of time?
If the answer to some or all of these questions is yes, then it is likely that you are in fact an employee, in which case current employment legislation will apply to you. It would be possible ultimately to go to an Employment Tribunal to claim an unlawful deduction of earnings, for example.
It would be worth checking with a lawyer in your area where you stand. Try Community Legal Services Direct webby (cls-direct.co.uk, I think). You need to put in your post code and the area of specialism, ie Employment Law, and they will give you a list of lawyers in your area. Remember to ask them for a fixed fee initial interview otherwise you will pay through the nose.
Please be aware though that there is a 3 month time limit on bringing a case to ET which starts at the time of the perceived breach.
2006-10-13 23:57:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you are self employed you dont have an employer - you have customers.
If one customer has recommended you to another that is business and if they are not paying you then you need to take some sort of legal action. You can legally charge interest on overdue debts.
Taking any action against customers over bad/overdue debts may lead to loss of customers - but then do you want customers that dont pay within a reasonable time?
2006-10-14 02:49:57 · answer #3 · answered by joe 3 · 0⤊ 0⤋
Are you sure it is not the company you were sub-contracted by that have the cash-flow problem?
It is not your job to subsidise the existence of either of these companies. Issue the company you have the payment agreement with a written reminder, if they take no heed contact a solicitor to issue a "Letter before Action" - they will have 7 days to pay you before you can commence legal action.
http://www.thomashiggins.com/
Rest assured if their cashflow problems have been ongoing you will not be the first person to have taken this action.
Good luck!
2006-10-14 00:32:07 · answer #4 · answered by bambam 5 · 0⤊ 0⤋
as i understand it,there is a contract between the company and the employer you work regular with,and there is a contract between that employer and you.so you do not have any legal ground concerning the first contract,only the second one between you and the employer.
legaly it is your employer that should take legal action agaist the company you worked for,not you..,but on the other hand,it is you who should take legal action against your employer,but i understand you dont want to disturb the relation you have currently with that employer,so that makes it difficult.
i suggest you have a serious talk with your employer,try to find out what he/she doing about it.and if thats not to your liking,putting some presure onto your employer isent nessesarely a bad thing to do.
2006-10-14 00:01:11 · answer #5 · answered by byciclerabbit 3 · 0⤊ 0⤋
Legally - you need to issue a seven day notice to the debtor. If no response after the seven days - small claims process through your local county court.
You can claim expenses back from the debtor and also charge interest on the original debt.
Good luck
2006-10-14 00:00:17 · answer #6 · answered by Phlodgeybodge 5 · 0⤊ 0⤋
The truth hurts. Your problem isn't with the company your problem is with your employer . He needs to pay you the company didn't hire you he did. if you work for friends and family expect this all the time. Heres a rule you need to remember friends are friends but business is business. they don't mix.
2006-10-14 08:17:32 · answer #7 · answered by money maker 3 · 0⤊ 0⤋
small claims court But talk it over with your employe and if he employed you to do the job hes responsible as well for subing you out so go direct to him its hes problem to sort the money from the company,
2006-10-16 07:44:58 · answer #8 · answered by tonyinspain 5 · 0⤊ 0⤋
Small Claims Court in UK. Unfortunately, still no guarantee they will pay you even if you win.
However, it looks to my husband and me, that your employer is responsible for paying you, as it was he who took on the sub-contract.
Good luck.
2006-10-13 23:52:11 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Small claims court may be able to help dependent upon the amount you are owed. Else, it's going to have to be a solicitor.
2006-10-13 23:49:34 · answer #10 · answered by nert 4 · 0⤊ 0⤋