Isn’t this stealing?

[LauraF]

Isn’t this stealing?

My husband is a professional, self-employed, and has a contract with a small company on a 50/50 basis. But it seems that the company owner is not paying my husband the right amount, and that it is not a mistake, but on purpose. If so, isn’t this stealing? Isn’t this a crime?

Their agreement is: the company provides the premises and clients, my husband does the work, and is supposed to be paid 50% of the revenues his work generates. The company has a computer system that tracks all these. Last month, April, my husband took daily printouts with the daily work and revenue, at the end of every single day. So we know exactly now how much was the total for April.

Now, this Friday (May 30) when my husband “reminded” the owner about his payment for April (yes, it was May 30, now is June, and my husband had still not been paid for April), the company owner said he will pay my husband at the beginning of next week, and gave my husband a note with the total for April. But it is almost a thousand pounds less than it should! Acording to the Company's own computer!

The problem is: We can’t just go to the owner and talk about it now, as we are in a very difficult financial situation, as my husband didn’t work for 6 months last year. First we must at least get some money from April in our account. Then we may think about it. Still, my husband has already worked the whole month of May, and we NEED to be paid for it too. If we get paid for April and May we can at least clear the credit cards. So we can’t “rock the boat” just yet. Anything we do must be in 5 weeks, after being paid for May.

But in general, as we live in the countryside, and the work is specialised, it could take another 6 months to find another company. And there are just a few companies in commuting distance, or we would have to move… We would MUCH prefer if the company could just mend their behavior, and settle some how.

But how? If we mention it, it can be very threatening for the owner, right?

We are confused. We don’t know what to do. Any advice please?
Any thoughts/suggestions/questions?

[Chris Butler]

If you have a contract with the company and they owe you money you cannot pussy foot around. De-personalise this. It is not about you and the owner it is about two businesses. You don't say whether your husband has a limited company (but it doesn't really matter). There is a legal contract between two business entities. This is not about upsetting people. If you do not adopt a position of strength then what happens when next time it is a difference of £1500?

Have you issued an invoice? You don't say. Invoice and then if there is a dispute, you have already created a tax point within your business which is an official record.

If my clients don't pay and they are 'little guys' I always always ask until the payments arrive. If they are bigger, generally my reaction is 'deal with it or my solicitor will'.

I understand your personal position, I have been there, BUT this is nothing to do with your business. That is a separate identity and you must treat it as such.

And if the owner feels a little threatened? Well I guess that depends how you deal with it. Be firm but pleasant and never ever bring your personal circumstances into the conversation.

Not sure whether I have helped at all - but one thing I do know is that you cannot just sit back and do nothing - and you will annoy your client a whole lot more if you take some sort of action without discussing it with them first.

I would also recommend that you put a huge pile of effort into marketing what you do to other prospective clients so you are not so reliant on one income stream. Also if you do that, your existing client may take you more seriously!

Cheers

Chris

[LauraF]

Dear Chris,

Thank you for your reply.

I fully agree with you that the main root of our problem is that this company is our only income stream. All the eggs in one basket!

<<limited company>>
Not yet, but we are setting one up soon.

<<a position of strength>>
I understand. The problem is that we are not in a position of strength, because of our fragile financial position, and because it is much easier for that company to substitute my husband than for my husband to find another company.

By the way, I’m sorry I wasn’t clear before, but I am not concerned with hurting the company’s owner’s feelings. Quite the opposite! If he did try to steal from my husband, I would like to have some leverage to force him to do the right thing, and behave properly from now on.

<<Have you issued an invoice?>>
No. The usual was that the company owner would get the total from the company computer system, and pay my husband. It has always worked fine. Everyday my husband brings home a printed list of his work, with prices, from the same computer. This month was the first time that the totals didn’t match.

My husband will work there tomorrow, Wednesday, and will check again the computer, bring home, and compare with his daily printouts from April. So we will be able to get more info on what is going on.

But thanks for the suggestion of invoicing them, instead of just trusting the computer system.

Cheers,

Laura