Ex 'employer' demanding return of money

[givemesomepeaceofmind]

I am an IFA and worked briefly last year for a company who paid 50% of gross commissions, rather than salary. they retained the other 50% in return for leads and regulatory fees, compliance etc. I have now left and work on behalf of another organisation.

 

I have recently received a letter stating that two cases have gone off the books and that I now owe them 100% of all the commison paid by the providers. I contend that I only owe them what was paid to me, ie 50% and have actually returned that amount. They say I owe the 100% and have sent a solictors letter to this effect , saying they will begin county court proceedings if the total amount is not paid. They point to a clause in the agreement which they say specifies the fact I owe them 100%, ie " "the Representative will indemnify the Firm from and against any claim for clawback of commission made in respect of any Contracts" and "The company shall bear all regulatory costs, ..... the Consultant to be responsible for all other cost",

 

I have written back saying this is not industry practice and the clause is not specific in the Agreement. Their demand for 100% acually means that they profit from the case being off the books! I have spoken to a lawyer who tells me that I have a good defence. However I would value another opinion and also advice on how to defend a claim against me.

thank you

[Conniff]

I can't see as the handing back of your share is 'other costs'. Your share is not a cost, it is a share of profit.

Like you say, a good little earner, get you to do work, cancel that work and get you to pay for everything.

I don't know the answer, but I would guess your solictor is correct.

[givemesomepeaceofmind]

thanks, the info I got from the solicitor was only via an informal phone chat.....of course he wanted me to go in and have a proper consultation, which i cant afford. The ex employer however is a big firm who has already got sols involved . i am torn between giving in and not being able to afford a large organisation. thats why Im wondering if anyone has any help to offer on here. Please..

[bed32]

What precisely was the legal relationship between yourself and the "employer"? Did you class as an employee or were you self-employed?

 

I guess that the argument would be that that represents a penalty clause and as such is unenforceable - but you really need someone who knows the case law.

[givemesomepeaceofmind]

I was self employed in that i paid my own NI and Tax , but was contracted to them, ie could not work for any other similar organisation

[JonCris]

I was self employed in that i paid my own NI and Tax , but was contracted to them, ie could not work for any other similar organisation

 

The latter sentence being the case I doubt you had been self-employed in the eyes of the taxman & if not their contract is void........I should check with the taxman