Client does not want to pay me on time

[Gulliver]

I entered into a direct contract with a digital agency (no recruiter). We agreed to 45 days payment term. I have submitted to them 5 invoices weekly. Today was the due date for the first invoice. They did not pay. When I asked them they told me that they have a payment schedule that they had to align me to so that I would be paid at the end of this week which would be 49 days instead of the agreed 45 days. then I asked them about the second invoice which would be due on 26/06/2012. They said that they pay contractors fortnightly and so the second invoice will be paid on the 06/07/2012. That's clearly 55 days instead of the agreed 45 days.

I called the legal helpline of Hiscox (through DAS). They told me that I can try to send them and email telling them that if they don't pay on time I will hold them in breach of my contract. There was no mentioning of fortnightly payments in the contract we both signed only that my invoices will be paid in 45 days.

Should I send such an email to my client or will they then not hire me again? They are once of the top NMA digital Agencies and a good reference for me. However, I took the assignment in belief they would pay me on time and till then I lived from my credit cards - now the limits are up so I need money.

Generally I would not have taken a contract on 45 days however they were to hire me as a self employed rather than an LTD - which I though was more tax efficient.

[northernladuk]

This pretty poor carry on from the agent when it was clearly agreed but you seem to have done your home work.

First question.... If they do pay you on 49 days and on 55 days (check the rest as well) is this really going to be a problem for you? Being behind with their payments doesn't mean they are not going to pay you. I am just thinking that if you are ok with this then it may not be worth rocking the boat. If it doesn't appear by 49 days then go ballistic but got to ask yourself, if is it worth a lot of hassle? This isn't a great option but it is one....

Have a look at https://payontime.co.uk/ and work out the interest you are due, advise them how much the interest will be and invoice them for it. Might pull their socks up a bit if they can see it is costing them.

Keep talking to them, point out they are in breach, that you have an agreement and you don't give a monkies about their times, they signed and they should honour them. I don't think a couple of stern emails back and forth will affect your relationship. They could just be pulling a flier with those that don't complain and if you do they will give in.

[SimonMac]

Can we get some clarification, do you mean the agent will not pay you, or the client will not pay the agent?

IANAL but I was under the impression that a "late" payment was not considered until 30 days after the original contract date (75 days from invoice raised in your case), it does seem tulipty but I don't think there is much you can do other than accept the revised terms or walk away under breach of contract.

[Andrew at Boox]

Make it known you're not happy, but be reasonable

This pretty poor carry on from the agent when it was clearly agreed but you seem to have done your home work.

First question.... If they do pay you on 49 days and on 55 days (check the rest as well) is this really going to be a problem for you? Being behind with their payments doesn't mean they are not going to pay you. I am just thinking that if you are ok with this then it may not be worth rocking the boat. If it doesn't appear by 49 days then go ballistic but got to ask yourself, if is it worth a lot of hassle? This isn't a great option but it is one....

Have a look at https://payontime.co.uk/ and work out the interest you are due, advise them how much the interest will be and invoice them for it. Might pull their socks up a bit if they can see it is costing them.

Keep talking to them, point out they are in breach, that you have an agreement and you don't give a monkies about their times, they signed and they should honour them. I don't think a couple of stern emails back and forth will affect your relationship. They could just be pulling a flier with those that don't complain and if you do they will give in.

I agree.

Send them an email or two letting them know this is not what was agreed. If they're reasonable they'll understand why you sent it and probably respect you for approaching them (many wouldn't bother).

Making yourself known to the bodies within the agency that actually click the Pay button can be useful!

[Spacecadet]

This pretty poor carry on from the agent when it was clearly agreed but you seem to have done your home work.

Read his post again, he's direct with the client, not going though an Agency

FWIW, working directly for end clients always entails some invoice chasing. 10 days late is nothing

[Gulliver]

Can we get some clarification, do you mean the agent will not pay you, or the client will not pay the agent?

IANAL but I was under the impression that a "late" payment was not considered until 30 days after the original contract date (75 days from invoice raised in your case), it does seem tulipty but I don't think there is much you can do other than accept the revised terms or walk away under breach of contract.

Sorry for the confusion the contract is directly with the agency and no recruiter is involved. 30 days after due date? So where is the late payment then? Can you please direct me to a source?

[Gulliver]

Read his post again, he's direct with the client, not going though an Agency

FWIW, working directly for end clients always entails some invoice chasing. 10 days late is nothing

Well I usually fired such clients. And I usually had 7 days payment term. But this was my only option and I alread managed to negotiate from 60 days to 45 days. If paid later than it's late. They have the cash they should honour the contract they entered into. It's their contract by the way.

[northernladuk]

Read his post again, he's direct with the client, not going though an Agency

FWIW, working directly for end clients always entails some invoice chasing. 10 days late is nothing

Ahh, I thought he had just confused his relationship what with his client being called a digital agency. Did wonder what he meant by the digital bit. Doh!

[northernladuk]

Well I usually fired such clients. And I usually had 7 days payment term. But this was my only option and I alread managed to negotiate from 60 days to 45 days. If paid later than it's late. They have the cash they should honour the contract they entered into. It's their contract by the way.

Wouldn't be the first time a guy writing the contract doesn't have a clue how the payroll works I would guess this is more likely to happen at a big client but I am sure someone will tell me its pretty universal.

[Spacecadet]

Sorry for the confusion the contract is directly with the agency and no recruiter is involved. 30 days after due date? So where is the late payment then? Can you please direct me to a source?

You need to watch your terminology on here. In the contracting world "Agency" is usually used to mean a Recruitment Agency.
If you don't mean a Recruitment Agency then specify (like you did in your first post, although it still confused some members)