Bust Agency – I lost 28 grand when my agency went bust

Bust Agency not paying contractor
Bust Agency not paying contractor

Lost Money from Bust agency

A bust agency cost a contractor £28,000.

We mentioned in an article that one contractor lost 28 grand after Chamberlain Scott went bust.

Like the other contractors they were spinning him a line that the money would be coming shortly. So he held on and held on and kept working away.

So, it ended up that Chamberlain Scott went into administration and offered its mainly IT Contractor creditors just 3p in the pound.

Agency Goes Bust
Agency Goes Bust

The friendly administrators sold all of the contract assets of the old Chamberlain Scott to a newco that the directors set up for just £91,000. That’s even though turnover for the previous year was more than £9m.

The contractors decided not to take it and to appoint a liquidator.

The guy who was owed 28 grand is obviously a long term reader of this website as he replied in the comments.

Chamberlain Scott Went Bust

‘One guy was owed £28,000 when Chamberlain Scott went bust a number of years ago.’

I’m still waiting.

I made two mistakes.

First, I didn’t walk out after not being paid on time.

Secondly, I stupidly thought that the rule of law in the UK would protect my right to get paid.

It doesn’t.

The agent has more rights to your money than you do.

Dud Agencies went bust in downturn
Dud Agencies went bust in downturn

Stop Working

If they don’t hand it over the best thing for you to do is stop working.

That is the quickest and most certain way of ensuring they pay up.

Don’t even bother telling your line manager.

Just drop the agent a note telling him that it‘s his responsibility to inform his client why you are not at work.

The money will be in your bank account within three days, guaranteed.

Don’t let a bust agency bring you down with them.

Make sure they are never behind with payments. If they are, act fast.