Is It Okay to Work Directly for a Client When Your Company Hasn't Paid You?

Hi all, I have been given a contract by a company, and I am paid on an hourly basis. In the contract letter, they mentioned that I should not have direct contact with the client or work for the client even after the completion of this contract for a period of two years. That's fine with me, but the company didn't pay me for the last two months' bill, which is around 1,50,000. Also, the company has stopped the project. The client is asking me to work for them directly, and he will pay me. Can I do this since I haven't received money from the company?

There are some gaps; you should have knowledge of why your company is not paying you. If they have not received payment from the client, then I don't think it is a good decision to work directly for the client. They might also not pay you in the future. Now you are eligible for payment from the company, but when dealing with the client, no one helps with the payment.

Alternatively, if you have a very good relationship with your client, then there is no problem in taking work directly from the client, but the consent of your company will also be required. If you work from home, then you may go ahead. It might be a step forward in your career.

Thanks

So many cases like this are happening.

My Suggestions

1. Send a legal notice to your company immediately. Get a good lawyer to draft a notice for you.

2. Keep the client informed about the default in payment by your company and their non-competition clause.

3. Have a new agreement made with the client, including a clause stating that they would handle all legal matters related to any arising issues from your main company. Have a lawyer draft the contract to safeguard your interests. In short, hold the client responsible for any future issues with your company.

4. There is no harm in working directly with the client, as they have approached you, not the other way around. Ensure that the payment clause is secured this time.

Lastly, inquire why the project was closed and why your company did not make the payment. Check the financial background of the client, as well as other vendors working with them, and their payment track records.

Wishing you good luck.

Regards,
Ukmitra

Further to what the other members suggested, the reason why your company stopped paying your salary is very critical. There surely exists a possibility that you made a very good impression with the client who might have decided to play a dirty trick on your company—stop payments for one reason or another, forcing your company to either withdraw your services or cancel the agreement and then offer to hire you directly. Why? Obviously, pure economics.

And does this seem far-fetched? In the cut-throat world of business, it's not. I have seen it happening in different contexts. I am not saying this is what happened in your case—all I am saying is: don't rule out this possibility also.

All the best.

Regards,
TS