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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 47881
Experience:  Qualified Solicitor - Please start your question with 'For Ben Jones'
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I am a education training provider, however we are sub

Customer Question

Hello.
I am a education training provider, however we are sub contracted to a lead provider who draws down the government funding, takes a management fee and then gives us the rest to foefill a service. However they are currently withholding all our money. I have read our agreement and feel they are breaking the agreement. But I do not know what to do next? Can you advice? Thank you
Darren Cox
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.

Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today.

Expert:  Ben Jones replied 1 year ago.

What reason have they provided for withholding your money? Please also briefly outline details of the agreement. Thank you.

Customer: replied 1 year ago.
Hello Ben, thanks for your response.
Expert:  Ben Jones replied 1 year ago.

Hi there. Thank you for your request for a phone call. I am unable to talk at the moment but if you provide the information requested, I will review the relevant information and laws and get back to you as soon as I can. Please do not respond to this message after you have provided the information as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you

Ben Jones and other Law Specialists are ready to help you
Customer: replied 1 year ago.
Hello. They started to withhold money in January 2016 as we did not appear on a education based register (called the ROTO). We agreed to this and asked our lead provider to sign a separate agreement stating that once we appeared on the ROTO then all back dated pay would be forwarded to us. We appeared on the ROTO on the 27th April 2016, however the lead provider is currently under going a government audit and are stating that they now will not pay us until the audit is complete, incase any of our learners require a government funding clawback. Within our original agreement with them (signed September 2015) it stats various points that we believe they have now breached.We are now at the point where we have said to them that we can not / will not continue training the learners without payment as we have worked without payment since January and the back dated pay has not been paid to us.We are unsure of what our next steps are.Thank you
Darren Cox
Customer: replied 1 year ago.
Hello as per our conversation. For some reason it will not allow me to add file to this thread. Am i able to email you direct?Thank you
Darren Cox
Expert:  Ben Jones replied 1 year ago.

Hello, whenever a dispute arises over money owed by one party to another, the debtor can be pursued through the civil courts for recovery of the debt. As legal action should always be seen as a last resort, there are certain actions that should be taken initially to try and resolve this matter informally and without having to involve the courts. It is recommended that the process follows these steps:

1. Reminder letter – if no reminders have been sent yet, one should be sent first to allow the debtor to voluntarily pay what is due.

2. Letter before action – if informal reminders have been sent but these have been ignored, the debtor must be sent a formal letter asking them to repay the debt, or at least make arrangements for its repayment, within a specified period of time. A reasonable period to demand a response by would be 10 days. They should be advised that if they fail to do contact you in order to resolve this matter, formal legal proceedings will be commenced to recover the debt. This letter serves as a ‘final warning’ and gives the other side the opportunity to resolve this matter without the need for legal action.

3. If they fail to pay or at least make contact to try and resolve this, formal legal proceedings can be initiated. A claim can be commenced online by going to www.moneyclaim.gov.uk. Once the claim form is completed it will be sent to the debtor and they will have a limited time to defend it. If they are aware legal proceedings have commenced it could also prompt them to reconsider their position and perhaps force them to contact you to try and resolve this.

Whatever correspondence is sent, it is always advisable to keep copies and use recorded delivery so that there is proof of delivery and a paper trail. The court may need to refer to these if it gets that far.

Customer: replied 1 year ago.
Hello. Thanks for the advice. I have managed to get the attachments sorted. Here attached is the original contract signed between us and our lead provider. We have resigned this since but simply with a change of date, none of the content changed.
Customer: replied 1 year ago.
Here is the shorter agreement that was signed in Jan / Feb regarding paying back the money once we appeared on the register.
Expert:  Ben Jones replied 1 year ago.

Thank you, ***** ***** indeed be best if you start the formal steps of making your position clear and advising them of what the next steps would be, including legal action, which should hopefully make them reconsider their position. You cannot force them to pay though so if they are reluctant to do so despite your position and threats, your only option would be to issue the money claim

Customer: replied 1 year ago.
Excellent. Have you managed to look at the documents sent across? Is this information based on what you read in these documents? Do you feel they are within their rights to withhold?Thank you
Expert:  Ben Jones replied 1 year ago.

Yes it was based in these. The relevant clause is 7.6, which states when they could delay payment (e.g. non-payment or late payment of funding by the agency or non-observance of the agreement). Also the schedule makes payment conditional on inclusion on ROTO, which has happened and it or the agreement do not state anything about audits being able to delay payments