I am a software contractor. I was in the process of looking for a new job and landed a new contract. The background checking was taking a month and during that time I got another offer from a previous large company I had been working for which I took. I ended up having two signed contracts. I notified the first agency that I wouldn't be able to do the work for their client, (three days before having to start working for them).
This was about 20 days ago.
I would like to know whether the company with which I had initially signed a contract has any legal grounds to request that I cover the fee they paid for my background check? I am fine with paying this amount (as per their calculations -- 600 GBP including VAT), as they claim they have incurred a loss of an estimated 10 0000 GBP. I very much doubt that:
- My background check cost that much. (A DBS / Disclosure Scotland costs roughly around 30-40 pounds; the background checks that rental and hiring agencies do, roughly costs ~200-300 GBP).
- They have incurred losses of 10 000 GBP.
I will pay their fee either way, as I had an obligation to them and they invested time in this. However, how can I make sure they will not charge anything further after this? Do we need to have some sort of settlement agreement which concludes this matter and could you go over it, if I do sign one?
My thanks in advance!
No, they haven't. I would say that those are due to the fact that I haven't started and, therefore, they have nobody to do the job. Either way, as I have not started working for them at all, I believe the contract is not in effect and legally, the shouldn't be in a position to claim that loss against me.
I am going to pay the 600, despite the fact that the agency said it would be 500 (and they're actually putting VAT on top of that).
My questions were really:
1) Do they really have any legal grounds for this at all?
2) If I were to pay the money, shouldn't I at least be getting some sort of settlement agreement in writing, that they cannot claim anything further?
Thank you for clarifying things and thanks for your services!