Non-paying client. Agency still hasn't paid me

[piggywig123]

Hi everyone,

I took up a contract in November last year through a recruitment agency. The client was a small startup. All was going well until mid January when the second month's payment was due and the startup seemed to run into some cashflow problems. I still haven't received payment for around 6 weeks worth of work because the agency still hasn't paid the client. I opted in so I believe this means the agency has to pay me regardless - although I can't find anything in the contract that states this (Not sure how explicit it would be anyway). I've been in regular contact with the agency but they're refusing to pay until the client pays them which doesn't seem likely anytime soon.

I'm really not sure what to do next so any advice would be appreciated!

[BlasterBates]

Send them a reminder and then another one threatening legal action, and if they don't pay then either take legal action or contact a company like this one.
https://www.safe-collections.com/

[northernladuk]

Not much you can. This is another story of why start ups should be avoided at all costs. You can try pulling clauses on the agency about them paying you regardless of the client not paying but when it's five figures they aren't going to roll over unless a court tells them to and it's just not worth your while taking it legal.

You can keep dunning and threatening the agency but they will just ignore it. They've lost money on this as well don't forget so they won't be overly happy either. It's not like they won't be doing anything about it but again, when there is no money there is nothing they can do.

Are you still with the client? If so down tools and leave unless you are OK working for free.

Why has it taken two months to get here? You should have had everything you have leaning on the agent by the end of Jan.

There might be something legal you could do about registering somewhere you are owed money if it's going to wind up but that's not going to help if they've no money etc....

Someone might give you more on the creditors situation but in all reality you are very unlikely to see a penny of this and just have to move on.

[ladymuck]

I would have walked off site long before now if payment hadn't been forthcoming.

(flouncing is so much harder when WFH!)

[piggywig123]

I left back in January but in hindsight should have left earlier. The recruitment agency have apparently agreed a payment plan paying monthly until June with the client but I'm not convinced. I guess this is a lesson to avoid startups!

[eek]

I left back in January but in hindsight should have left earlier. The recruitment agency have apparently agreed a payment plan paying monthly until June with the client but I'm not convinced. I guess this is a lesson to avoid startups!

As BlasterBates says phone SafeCollections and see how they suggest you proceed.

[BlasterBates]

I left back in January but in hindsight should have left earlier. The recruitment agency have apparently agreed a payment plan paying monthly until June with the client but I'm not convinced. I guess this is a lesson to avoid startups!

It costs money and also time to take legal action so talk to them about a monthly plan to pay back the money. No point in rushing to safe collections until you're sure you have to take legal action.