MCOL Procedure

Hi All be grateful for any help.

I got a call a few weeks ago on a Friday asking if I could start a role the following Monday. I work in IT as a contractor and am a LTD company. No contract was exchanged over the weekend as the call to attend was late on the Friday.

I attended the company on the Monday and done a days work at the agreed rate of £300 per day as per the emails on the Friday. Stupidly I went out for a few drinks with friends and it turned very messy and I missed my stop on the last train home (90 mile train commute) and got to bed about 2.3am forgetting to charge my phone.

I woke up at 11am missing the second day of work (use my phone as a alarm clock) and spoke to the agency and they said the client no longer wants me because of the failure to attend which is understandable. Not much of an issue as I walked into another role a few days later.

I sent an invoice for the one days work and had a reply asking if I am joking, I replied nope and said they had 14 days to pay as per my terms. This passed without payment. I gave sent them a LBA giving them 7 days to pay the invoice and total silence.

I am therefore now taking the MCOL route and want to ask a couple of questions.

Do I use my own name or my ltd company name as the claimant?
Can I claim back the court fee?
Invoice sent on 8th Oct giving 14 days, final demand sent on 23rd Oct giving 7 days, which date does interest accrue from?


TIA

Hi there

Before answering may I clarify one aspect please. I appreciate a contract wasn't agreed over the weekend. However, prior to you starting work on the Monday, did you do any of the following:

- pop up to HR or to the purchasing department to present your terms and conditions?
- share your terms with your client at any point before starting work on the Monday?
- mention your 14 day payment terms (in summary perhaps) in an e-mail to your client before commencing work?

If your answer is 'No' to all of the above, then your 14 day payment terms do not apply. It's too late to agree your terms with a client after work has started. By all means put your terms and conditions on the back of your invoices but only as a tertiary measure to creating a contract with a client and reinforcing your own terms. In this case, statute law takes over and payment is due 30 calendar days after your client has received your invoice.

If your answer is 'yes' to one of the above scenarios then payment by your client is due 14 days after they receive your invoice. Late payment interest and admin charges and reasonable, additional 3rd party collection costs can be added as soon as payment becomes overdue i.e. after 14 days has elapsed from the date your client received your invoice.

I am not sure if you can claim court fees using the MCOL procedure (apologies but our focus is on preventing the need to resort to the courts).

Regards
John Hackwood
TermsandConditions.co.uk Ltd

Hi John,

Thanks for the response. In answer to your questions

- pop up to HR or to the purchasing department to present your terms and conditions? - This was a contract position and no local HR for the agency on site
- share your terms with your client at any point before starting work on the Monday? - No I did not, I assumed 14 days would be ample as I know they normally pay on those terms
- mention your 14 day payment terms (in summary perhaps) in an e-mail to your client before commencing work? - Again no, as above I know they normally pay weekly.

I did read about the 30 day default limit, they have surpassed this easily now anyway. In one of the last emails he basically told me to go sing for it, so I have no expectation of them paying that is why it is going to have to go to MCOL. Won return my calls, respond to my emails, even when I cc;d in the managing director.

Hi Damian

According to the Ministry of Justice, it will take on average of 6 months for your claim to be heard so I hope your case is one of the quick ones. By the way, what is the reason for your client to object to payment for your day's work? Did they want you to complete a longer project? Or was your work more of an IT support type role?

Best Regards
John Hackwood
TermsandConditions.co.uk Ltd

Hi John, it was a longer contract but they got someone in to replace me on the Wednesday. I am not fussed with it taking 6 months, they will payup I would believe before then, think it is a case they will wait until such time they will receive papers.

My actions were not the norm and somewhat disappointed in myself but that makes no odds in witholding poayment.