+ Reply to Thread
Posts 1 to 7 of 7
  1. #1

    Nervous Newbie


    Join Date
    Apr 2013
    Posts
    3
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default Unpaid Invoices through Umbrella Company

    Hi,

    I've been reading posts on here for a while to get tips and advice etc.. I'm pretty new to contracting.

    Anyway, I'm having a problem with a previous contract. The contract was sourced directly (word of mouth) but everything is being handled by an umbrella company.

    The digital agency I was working for are notoriously bad at paying invoices (I've heard stories ranging from months late, to not being paid at all, to freelancers having to threaten court action to get invoices cleared). There's quite a close-nit group of freelancers and contractors in the area and several have worked for this digital agency.

    Whilst I was working there, they were always bad at paying invoices, they always required chasing up several times (I was doing this as the umbrella company didn't seem to be helping). During my time there though, there was always the threat that I would just stop working and not turn up - this route was used several times, and the result was getting the invoices paid straight away. They never have any reasons to not paying invoices, they're just a bit tardy - or like to hold the funds until the last possible moment.

    Now I have moved on (thankfully), I can't threaten to not show up, but I still have an outstanding invoice (currently a little over 3 weeks overdue). It's been chased constantly by myself without and luck. I've raised this with the umbrella company to get involved, they don't seem to be helping much - they're not pro-actively chasing the invoice, they're not being firm in the slightest. I get the impression, that if the digital agency turned round and said they would pay it in 6 months time, the umbrella company would just say 'OK'.

    Does anyone have any advice regarding this? Anyone been in any situations like this before?

    I've been here with freelance projects (invoiced by myself) and never had any problems as I am in charge of the contract and so on. It feels like I have no jurisdiction over chasing the funds as my contract is with the umbrella company - and it is them who have the contract with the digital agency. I can't seem to find any advice about this (involving and umbrella company) after spending countless hours googling and scouring forums.

    Any advice would be very much appreciated as I'm not really sure what to do next.

  2. #2

    More time posting than coding

    Safe Collections's Avatar
    Join Date
    Jul 2011
    Location
    Lancashire
    Posts
    335
    Thanks (Given)
    37
    Thanks (Received)
    34
    Likes (Given)
    577
    Likes (Received)
    93

    Default

    Hi,

    It is a tricky situation this and one we see quite regularly...

    Now assuming your contractual obligation is to the umbrella, it should be a case of chasing them for your money as opposed to the end client. But usefully, this isn't always the case!

    You need to check your agreement with the brolly to ascertain what the situation is regarding payment. Some umbrellas include a "we pay, when we get paid" clause, if that isn't included then you need to start pushing the brolly to pay you.

    If/when they take up the chase of the end client should generally not impact when you receive your funds.

    And if that wasn't enough to consider, being opted in/out can also have an impact on this situation...
    The only debt collection & credit control company recommended by Contractor UK.

    Read our articles on ContractorUK here and get in touch here.

  3. #3

    Nervous Newbie


    Join Date
    Apr 2013
    Posts
    3
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default

    Quote Originally Posted by Safe Collections View Post
    Hi,

    It is a tricky situation this and one we see quite regularly...

    Now assuming your contractual obligation is to the umbrella, it should be a case of chasing them for your money as opposed to the end client. But usefully, this isn't always the case!

    You need to check your agreement with the brolly to ascertain what the situation is regarding payment. Some umbrellas include a "we pay, when we get paid" clause, if that isn't included then you need to start pushing the brolly to pay you.

    If/when they take up the chase of the end client should generally not impact when you receive your funds.

    And if that wasn't enough to consider, being opted in/out can also have an impact on this situation...

    Thanks for the reply. That clause is indeed in my contract - along with being opted-out - I think. Live and learn I guess. Basically I cannot get paid until the brolly gets paid - so the brolly needs to be chasing the funds right?

  4. #4

    Double Godlike!

    BlasterBates's Avatar
    Join Date
    Jul 2005
    Location
    Trump University
    Posts
    10,377
    Thanks (Given)
    40
    Thanks (Received)
    158
    Likes (Given)
    285
    Likes (Received)
    617

    Default

    I would get in touch with the umbrella and see if you can chase the invoices on their behalf. Obviously they donīt care. If thatīs the case you just go through the usual precedings. In the end the only option might be to chase the umbrella.
    Last edited by BlasterBates; 24th April 2013 at 09:30.
    Author of the best seller "How to get Poor quickly"

  5. #5

    Nervous Newbie


    Join Date
    Apr 2013
    Posts
    3
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default

    Quote Originally Posted by BlasterBates View Post
    I would get in touch with the umbrella and see if you can chase the invoices on their behalf. Obviously they donīt care. If thatīs the case you just go through the usual precedings. In the end the only option might be to chase the umbrella.
    Thanks. Fingers crossed. Apparently it has been escalated with the brolly to the managing director to deal with - so we'll see how that ends up.

    I'll let you know what happens :-)

  6. #6

    More time posting than coding

    Safe Collections's Avatar
    Join Date
    Jul 2011
    Location
    Lancashire
    Posts
    335
    Thanks (Given)
    37
    Thanks (Received)
    34
    Likes (Given)
    577
    Likes (Received)
    93

    Default

    Quote Originally Posted by rockyrunner View Post
    Thanks. Fingers crossed. Apparently it has been escalated with the brolly to the managing director to deal with - so we'll see how that ends up.

    I'll let you know what happens :-)
    Fingers crossed here as well. Let us know what the brolly say (if anything) and make sure you stay in regular contact with them regarding payment...
    The only debt collection & credit control company recommended by Contractor UK.

    Read our articles on ContractorUK here and get in touch here.

  7. #7

    Should post faster


    Join Date
    Jan 2013
    Location
    Watford & London
    Posts
    171
    Thanks (Given)
    0
    Thanks (Received)
    9
    Likes (Given)
    39
    Likes (Received)
    18

    Default

    Quote Originally Posted by rockyrunner View Post
    Thanks. Fingers crossed. Apparently it has been escalated with the brolly to the managing director to deal with - so we'll see how that ends up.

    I'll let you know what happens :-)
    Good luck, and next time use a decent brolly :-) (or go ltd if right for you!)

+ Reply to Thread

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.