Agency withholding funds

[xoggoth]

After losing £1500+ I would be very wary of any sort of payment delay and would be inclined to stop work until it is sorted and insist on very prompt payment in the future. Looking back, I can see the warning signs were there but I ignored them

[loftboy_uk]

Thank you for all your advice. Before I name and shame I have one more issue I need to sort out...

At present the agency have stated that it's up to me whether I want to continue working for the client. They are happy for me to continue working but I need to find out from the client if they will be able to pay in the future and therefore I would be paid in turn.

My question is this - if I tell the client I am stopping work, am I in breach of my contract as both myself and the agency have to give 4 weeks notice? The October invoice is not due into my account until this Friday but they have already told me they will not honour it. Should I continue working with the client for the rest of the week and, if no money in the account by COB Friday, tell them on Monday they are in breach (at which point I think the Termination clause becomes redundant???) and then pursue the money or terminate now due to them telling me they will not pay anymore?

Thanks again....

FYI, it's a lot more than £1500...

[Mustang]

FWIW, you don't actually need to raise an invoice for interest payments. You do need to send them a letter stating that you intend to charge them interest.

Another point, I think your dealings should only be with the agency - that is who you have the contract with. Let them tell the end client.

[ratewhore]

Unless anything is written into your contract around only getting paid if the agency get paid, it is not your problem.

I personally would not walk off site and would instead make sure the agency are fully aware of their legal obligations as per the contract. You may need to go higher than the standard brain dead pimp you encounter on the phone but the reality of the situation is that you have a contract with the agency, you do the work, they pay you in line with the terms and conditions of that contract. If they don't then they are in breach and thats when you start adding the payments and interest. Of course, is they still fail to pay then you end up in court...

[boredsenseless]

FWIW, you don't actually need to raise an invoice for interest payments. You do need to send them a letter stating that you intend to charge them interest.

Another point, I think your dealings should only be with the agency - that is who you have the contract with. Let them tell the end client.

All very true.

You can't actually do anyhting until the invoice is overdue. At that point you have to decide what you want to do.

You can only take action against the agent. (unless other orders are put in place by courts).

Usually however the normal practice is to send a formal reminder and then if not paid within seven days a demand for the money. This means you are still two weeks away from really being able to take legal action since the courts would want to see you had at least tried to recover the money rather than just running straight to them.

Not working until you are paid isn't an option until at least Friday since you are not yet 'not paid' and this would deffo be a breach on your part.

I would talk to the agency again and point out that it is they you have a contract with and that they cannot withold monies in this way. Point out that should they terminate you as a result of this you do have a notice period and you will invoice them for it.

If they then send you a letter syaing they are not paying you you can start proceedings then.

In all honesty though you probably have nothing to worry about most end-clients take an age to pay, it is your agent who is being unrealistic in expecting you to wait for the pay. - I know this isn;t the case if you go direct, you take the risk of non/late payment but if you use a pimp you should get the benefit

[BrilloPad]

Are there other contractors in the same position as you?

[Sockpuppet]

At present the agency have stated that it's up to me whether I want to continue working for the client. They are happy for me to continue working but I need to find out from the client if they will be able to pay in the future and therefore I would be paid in turn.

Ask the agency if they are willing to pay you to stay onn site.

The food chain is you -> agency -> client

At the end of the days its the agents decision to keep you or pull you as it is thier cash on the line. If they are not willing to keep you on site then you wont be going back.

Whatever you do dont agree to go back on the understanding that you getting paid is down to the client paying up not good business sense.

[tim123]

If the client goes bust owing the agency money, this is the agency's problem. Unless that is this client represent so much of the agent's business that it causes them to go under too.

The agency (or its administrators) have to treat all the creditors (with the same legal status) the same. They cannot pick and choose which ones they pay based upon which client they were working for. Either everyone gets 100%, or everyone gets 0% (or some number in between).

So, in essence, if the agency see a risk of non payment from this client they should be telling you not to continue working there. The fact that they aren't doing this, means that the risk is with them.

tim

[expat]

At present the agency have stated that it's up to me whether I want to continue working for the client. They are happy for me to continue working ...

I'll bet they are, if it doesn't cost them anything.

[ratewhore]

I'll bet they are, if it doesn't cost them anything.

But thats the point - it IS costing them as per the contractual agreement...