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    Default Agency changing payment terms mid-contract

    I started a new contract 5 weeks ago, and the recruitment agency provided a contract with weekly payment terms. It was signed by both parties. I've just received an email on Friday last week from the agency, to say "we are changing all contractors over to monthly invoicing, effective immediately."

    Can they do this, when we have a signed contract, stating weekly payments, and they provided a payment schedule that shows all payments are weekly on a Friday for the duration of the contract (provided at contract signing)?

    This sudden and unexpected change will cause some issues for me, so I don't want to agree to it.
    Is it allowed?

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    Quote Originally Posted by ECommerceConsultant View Post
    I started a new contract 5 weeks ago, and the recruitment agency provided a contract with weekly payment terms. It was signed by both parties. I've just received an email on Friday last week from the agency, to say "we are changing all contractors over to monthly invoicing, effective immediately."

    Can they do this, when we have a signed contract, stating weekly payments, and they provided a payment schedule that shows all payments are weekly on a Friday for the duration of the contract (provided at contract signing)?

    This sudden and unexpected change will cause some issues for me, so I don't want to agree to it.
    Is it allowed?

    My first reaction wouldn't be "Is it allowed?"

    I would credit check the agency ASAP and worry about not getting paid at all.

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    Does it say anything in your contract about it? Anything about being able to change for any reason?

    I've had payment dates and periods change slightly but not enough to kick a stink up about it. One consultancy had a bit of a habit of paying a couple of days later than the 30 days every so often and some of the contractors made a real meal of it. DD's set up on the 1st weren't being paid and so on. The consultancy listened to the feedback and took action of the back of it.... buy upping the period to 35 days... They were never late again to be fair

    If it's really a problem I'd speak to them and discuss it. It could be cash flow problems or it could be a new system they've brought in. Voice your concerns and see what they say. A vast majority of contractual problems can be solved through negotiation. Maybe they can put off your change for a bit longer until you get your warchest up or something. A month isn't uncommon so you do need to be prepared in the long run.

    If you really want to throw a complete strop about it they can give you notice and issue you with a new contract take it or leave it later I guess.

    Give them a bell and see what they say first before looking at contract breach and the like.
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    Quote Originally Posted by northernladuk View Post
    Does it say anything in your contract about it? Anything about being able to change for any reason?

    I've had payment dates and periods change slightly but not enough to kick a stink up about it. One consultancy had a bit of a habit of paying a couple of days later than the 30 days every so often and some of the contractors made a real meal of it. DD's set up on the 1st weren't being paid and so on. The consultancy listened to the feedback and took action of the back of it.... buy upping the period to 35 days... They were never late again to be fair

    If it's really a problem I'd speak to them and discuss it. It could be cash flow problems or it could be a new system they've brought in. Voice your concerns and see what they say. A vast majority of contractual problems can be solved through negotiation. Maybe they can put off your change for a bit longer until you get your warchest up or something. A month isn't uncommon so you do need to be prepared in the long run.

    If you really want to throw a complete strop about it they can give you notice and issue you with a new contract take it or leave it later I guess.

    Give them a bell and see what they say first before looking at contract breach and the like.



    We always differ on this.

    I kick up a stink if I cannot get the money in my account ASAP.

    I have also threatened to walk over such matters.

    Must just be the way I am .

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    Quote Originally Posted by northernladuk View Post
    Does it say anything in your contract about it? Anything about being able to change for any reason?

    I've had payment dates and periods change slightly but not enough to kick a stink up about it. One consultancy had a bit of a habit of paying a couple of days later than the 30 days every so often and some of the contractors made a real meal of it. DD's set up on the 1st weren't being paid and so on. The consultancy listened to the feedback and took action of the back of it.... buy upping the period to 35 days... They were never late again to be fair

    If it's really a problem I'd speak to them and discuss it. It could be cash flow problems or it could be a new system they've brought in. Voice your concerns and see what they say. A vast majority of contractual problems can be solved through negotiation. Maybe they can put off your change for a bit longer until you get your warchest up or something. A month isn't uncommon so you do need to be prepared in the long run.

    If you really want to throw a complete strop about it they can give you notice and issue you with a new contract take it or leave it later I guess.

    Give them a bell and see what they say first before looking at contract breach and the like.

    Thanks for your reply. Definitely not planning to throw a strop, I just wondered if it is allowed, before I ring them to discuss it with them.
    It doesn't say anything in the contract about it, just that it is weekly payment terms.

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    Quote Originally Posted by MrMarkyMark View Post



    We always differ on this.

    I kick up a stink if I cannot get the money in my account ASAP.

    I have also threatened to walk over such matters.

    Must just be the way I am .
    +1. Payment term changes imply problems with the finances of the agency.

    Given that we've seen problems recently with firms like coal it and others were changes in their main customer resulted in them closing down soon afterwards my reply would've sorry but no. If that's a problem please serve notice and I'll start looking elsewhere
    merely at clientco for the entertainment

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    Quote Originally Posted by eek View Post
    +1. Payment term changes imply problems with the finances of the agency.

    Given that we've seen problems recently with firms like coal it and others were changes in their main customer resulted in them closing down soon afterwards my reply would've sorry but no. If that's a problem please serve notice and I'll start looking elsewhere
    My overall take on this is, I have personally seen contractors lose a whole bunch of money in better financial conditions than these.

    Y (OP) or anyone else's MMV.
    Last edited by MrMarkyMark; 20th March 2017 at 13:54.

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    Quote Originally Posted by MrMarkyMark View Post



    We always differ on this.

    I kick up a stink if I cannot get the money in my account ASAP.

    I have also threatened to walk over such matters.

    Must just be the way I am .
    And to be fair we talk about running your business properly so this is probably the best way to do it. I've just never been with a small agency I need to keep an eye on and in 8 years I can only think of one time a payment has been over 5 days late. All my DD's are a week after, business and personal, just to avoid problems so never needed to sweat it. I'll probably come a cropper one day but it's been fine so far.
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    Remember the IPSE+ does cover you to some extent for agencies going bump and the like. Not saying it's the answer, just something you should think about to help protect yourself should the worst ever happen and worth looking at.
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    Quote Originally Posted by northernladuk View Post
    And to be fair we talk about running your business properly so this is probably the best way to do it. I've just never been with a small agency I need to keep an eye on and in 8 years I can only think of one time a payment has been over 5 days late. All my DD's are a week after, business and personal, just to avoid problems so never needed to sweat it. I'll probably come a cropper one day but it's been fine so far.
    Changing times, might be worth people being more vigilant .

    I have had a couple of contracts, in the distant past, where the payment terms have been horrific, one where I had to wait for 3 months for money etc. etc.

    In these times I tend to be (and can be) a little more hard line.

    No one is too big to fail.

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