New agency, no pay

[twice_nightly]

I've just started a new contract with an agency I hadn't heard of before, eveything seemed to be going OK until last Friday when I didn't paid via my Umbrella.

The agency say they've transferred funds to my umbrella, but my umbrella say they haven't received anything. The umbrella company haven't let me down in the past and I've always had my money on the dot from them/my last agency.

My concern is that in talking to my new colleague (who is also with the same agency) I've discovered that he too hasn't been paid for a number of weeks now.

I've been fortunate that this hasn't happened to me before, so I'm not sure what the best course of action is to resolve this?

Cheers

[tim123]

down tools until you get paid.

This may piss the client off though.

tim

[DaveB]

What are the payment terms in your contract?

Assuming the agancy havn't stuck to the contract terms then get written confirmation from your brolly that they havn't recieved the funds from the agency. Copy that to the agency and tell them you will down tools if payment is not recieved within 5 working days.

If they are not forthcoming then talk to the client. Explain that you are not gettting paid and that you will not be working further untill you do.

If the situation doesnt look like it will get fixed quickly and the agency have broken the payment terms of your contract then you are well within your rights to start looking for a new gig.

[portseven]

If the payment terms have been broken you could talk to the client and go direct, maybe splitting the difference in the agency's markup, giving yourself a payrise & saving the client some money

[Cowboy Bob]

Sounds like the agency may be having cash flow problems.

Best thing to do at the moment is not issue anymore invoices (once issued they'll become a debt of the agency which you don't want if they're going insolvent - you can later invoice the client direct if the agency does go to the wall), then get a credit check done on the agency and find out if they are late filing their accounts at Companies House.

If it looks bad for the agency, down tools and notify the client that you are not getting paid. They will either put pressure on the agency to pay you, or sack the agency for breach of contract which then leaves you clear to invoice directly.

[lukemg]

Inform the client immediately. They may be about to pay money to the agency for your services which will disappear if the agency go bump, leaving you both out of pocket.
Don't down tools, get the client on your side, explain what is happening, this will make it much easier to negotiate a direct arrangement etc if things get worse.

[Bluebird]

Sounds like the agency may be having cash flow problems.

Best thing to do at the moment is not issue anymore invoices (once issued they'll become a debt of the agency which you don't want if they're going insolvent - you can later invoice the client direct if the agency does go to the wall), then get a credit check done on the agency and find out if they are late filing their accounts at Companies House.

If it looks bad for the agency, down tools and notify the client that you are not getting paid. They will either put pressure on the agency to pay you, or sack the agency for breach of contract which then leaves you clear to invoice directly.

find out if they are late filing their accounts at Companies House.
- this can be done on the CH website and for about £10 you can get all the details of directors including their home addresses

[ContractIn]

I've just started a new contract with an agency I hadn't heard of before, eveything seemed to be going OK until last Friday when I didn't paid via my Umbrella.

The agency say they've transferred funds to my umbrella, but my umbrella say they haven't received anything. The umbrella company haven't let me down in the past and I've always had my money on the dot from them/my last agency.

My concern is that in talking to my new colleague (who is also with the same agency) I've discovered that he too hasn't been paid for a number of weeks now.

I've been fortunate that this hasn't happened to me before, so I'm not sure what the best course of action is to resolve this?

Cheers

Name and shame them on here

[boredsenseless]

Name and shame them on here

How exactly would that help him?

It would encourage others who are with that agency to down tools (even if they are being paid on time) and then the agency would go to the wall taking his cash with him.

The error may be entirely innocent, i.e. new payment not set up on BACS due to oversight and nothing to do with available funds.

Oh and the comment about talking to the end client to stop them paying won't work either as if the invoice has been sent from the agency the end -client is contractually bound to pay regardless. The fact you aren't getting paid is to put it bluntly neither 'here nor there'.

This is why they use contractors to remove them from the burden of dealing with tedious (i know its not tedious to you) inconsequentialities.

Go after the brolly and agent hammer and tongs, send a letter as advised, tell the client you will not be working until paid (if you wish) and then stick to the action you have stated you will take. I know its a pain, but it happens to all at some point its one of the -ve of being a contractor, learn to accept it and learn how to deal with the problem through 'business channels'.

At the moment it sounds like a permie complaining his salary has been delayed.

[twice_nightly]

Many thanks for the replies and advice, I'm pleased to say that after numerous calls to both the agency and umbrella company that I have today received payment.

I think in the end persistence and a "change of telephone manner" with the agency did the trick

Now we'll have to see what happens this Friday!

Cheers