Ontario, Canada - Contract Worker not paid

[38G75NP]

I signed a contract as an "independent professional contractor" with a company to do website and marketing work for them - I work from home. It is a contract for a certain amount for each calendar month to be paid twice a month. The duties were laid out in the contract, and I have been completing all of the website work as described in the agreement, however I have not been able to move forward on the marketing aspects of the position as the owner has not made himself available to answer my questions.

For several months I have been requesting time to meet or talk on the phone to discuss numerous issues. I have sent texts and emails that have been ignored. Occasionally I get an excuse – it’s usually that they are too busy and cannot make the time to speak with me. Without more information, I have not been able to proceed with some of these duties outlined in the contract. I have received texts suggesting that there are many issues that I should be working on, but still, they won’t tell me the details of what the issues are. It’s hard to solve a problem when you don’t know exactly what the problem is.

As a result, I have concentrated on doing everything else that I could with the site, and with preparing documents to go over with them, if and when they ever meet with me. Meanwhile, I am not being paid regularly. I have received some partial payments and at this time I am owed funds for the equivalent of 6 weeks work. The owner just admitted to me that they are in serious financial trouble and owe a lot of people money. They haven’t paid their rent for their personal home or their business location, they haven’t paid other workers, and he said that his car insurance is being cancelled due to non-payment. Based on what I was told, I don’t see their situation turning around any time soon.

Our contract stipulates 30 days notice for either party to end the contract.

My questions:
- Am I obligated to honor that contract even though I have not been paid what is owed to me?
- Is it an issue that I technically have not done some of the work I signed on to do (in spite of the fact that through their lack of communication they have prevented me from properly fulfilling my obligations)?
- Do I have to give 30 days notice and continue working for the next 30 days? Or have they already broken the contract by not paying me, in which case I can stop working for them immediately. The owner does not want to let me go, and I feel bad for him as I can see how overwhelmed he is, but I can’t go on without a salary and feel that all of my time must be spent looking for another job.
- Do I have a strong case for small claims court if it should come to that?

[AFFA]

I wish to inform you that you can give a notice to other party that contract has come to an end because of the acts of other party. As other party has prevented you from performing the contract therefore other party is at fault. You can demand compensation arising out of breach of contract by other party. As other party has defaulted terms of contract so other party can be held liable for your loss.

AFF

[38G75NP]

Thank you both for your responses, that is very helpful.

Two more questions...there are many materials that I have prepared over the past 2 months - price lists, marketing materials, etc. that I have not yet submitted as I was waiting for some confirmation from the company on a couple of points. Should I be handing over that material as technically it is part of the work I did for the money they are owing me? If I were to go to small claims court to try to get paid for the work I did, I am wondering if I need to give them those materials to justify my being paid. Or should I withhold that material because I have not been paid?

Also, in a related matter...if I was just informed days ago of the problems and the fact that they cannot pay me right now, should I interpret that to mean that they are basically giving me my 30 days notice as of last Friday and are obligated to add the salary owed to me for the next 30 days? Last Friday was the first I was hearing of how difficult their situation was, so even though they may have technically breached the contract by not paying me for the past 6 weeks, I did not know this was where we were heading, so I would think I am entitled to 30 days notice and be owed that money as well. If we go that route though, don't I need to continue to do some work for them?

[LegalMan]

It sounds to me like you need an attorney on your side in this matter my friend. I would not recommend fighting this battle on your own. Having an attorney make phone calls and write the correct letters on your behalf should help you to resolve the issue in the best way possible. Feel free to contact me and I will be glad to show you how my service should be able to help you.

Good luck and God bless.

[Friend In Court]

Originally Posted by LegalMan It sounds to me like you need an attorney on your side in this matter my friend. I would not recommend fighting this battle on your own. Having an attorney make phone calls and write the correct letters on your behalf should help you to resolve the issue in the best way possible. Feel free to contact me and I will be glad to show you how my service should be able to help you. Good luck and God bless.

The above person is selling a pre paid legal plan I am told. Beware!!!