Agency changing payment dates

[oldgeezer]

4 months into a 12 month contract, my clients 'preferred supplier' agency sent me an email (and approx 50 other contractors working at client site using our clients email addresses) as follows:

"Dear All
We are establishing a new payment process to bring all contractor payments in line with each other (we currently pay contractors under a number of different payment terms - 10 days, 14 days and 30 days).
With immediate effect, payments will be made each working day with payments being cleared by 'agency' 14 days from receipt of all necessary documents (e.g. authorised timesheets, correct invoices and signed contract), the deadline remains the same at 12 noon. If there is a delay in any one of those documents the invoice will be logged as received on the date all documentation has been received.

As per your terms, four weekly invoicing remains unchanged.

We have notified 'client name here' of this change to our terms."

Thing is, the contract between my Ltd co and the agency has the following in the 'contractor payments timetable and billing details' section. -

"-payments will be made each working day with payments being made by 'agency name' 1 week after receiving all necessary documents. That means that funds will (subject to usual UK bank clearing) be in your account 2 days later. This means that if a valid invoice is recived on Day 1, then payment will be made on working day 5 (1 week later) and will be cleared in your account day 8. The coampny will make payments into suppliers account via BACS."

For quite a while this agency has been erratic with their payment, often it seems thay pay on demand (i.e I ring their accounts and they pay up if the normal pay-by date has been passed.
I'm feeling a bit narked that the agency seem to be being a bit underhand by issuing this directive in such an informal way, not even contacting me via my Ltd company etc.
I have a few choices:
move to another agency (they unfortunately all have 14 day schemes though)
insist this lot pay as per the payment terms in the contract
charge interest on invoices not paid within the terms
stay put and grumble about it, then change agency at end of contract (if renewed)

What would you guys do? Any similar experiences?

[ratewhore]

yep, that happened to me. I changed contracts due to other circumstances so was not too much of a hindrance.

Since then I have had late payments so I now charge penalty and interest on all amounts outstanding after 30 days. Check out www.payontime.co.uk. Stick some wording on your invoices (you don't need this but it looks informative) and double check your invoices are correct with all relevant documentation when sending it in.

In your specific case, it seems the only issue is payment taking a week longer. I would say that is not an issue at all and should be left alone. Concentrate on making sure they pay when they said they will...

HTH.

[oldgeezer]

cheers for that ratewhore. At the moment I feel like writing a letter of complaint to the agency , copying the client, then include the relevant wording on all future invoices.

[boredsenseless]

but then you'll just look like a trouble-making whinger to the client who won't really see the difference between you waiting 7 days or 14 for your money since you are richer than he is anyway.

If you must complain keep the end-client out of it the issue is between you and the agency and the professional way to sort this is amicably between the two of you. If you get into a fight and drag the client in too they will undoubtedly fall on the side of the agency (since they provide so much od their resource they won't want to p@ss them off).

Given that it isn't a huge change I would write a letter to the agency stating your displeasure at the change. It won't change anything since their contract will reserve the right to change these conditions.

[The Lone Gunman]

I would suggest a nice letter to the agent agreeing that if it will make payment easier for them then they should go ahead. Then add something along the lines of I am sure you will see no reason not to include a late payment penalty clause into the contract etc....

I am assuming you are opted out of the agents regs? If not there is a requirement on them to pay.

Prohibition on employment businesses withholding payment to work-seekers on certain grounds

12. -

An employment business shall not, in respect of a work-seeker whom it supplies to a hirer, withhold or threaten to withhold from the work-seeker (whether by means of the inclusion of a term in a contract with the work-seeker or otherwise) the whole or any part of any payment in respect of any work done by the work-seeker on any of the following grounds -

(a) non-receipt of payment from the hirer in respect of the supply of any service provided by the employment business to the hirer;

(b) the work-seeker’s failure to produce documentary evidence authenticated by the hirer of the fact that the work-seeker has worked during a particular period of time, provided that this provision shall not prevent the employment business from satisfying itself by other means that the work-seeker worked for the particular period in question;

(c) the work-seeker not having worked during any period other than that to which the payment relates; or

(d) any matter within the control of the employment business.

[oldgeezer]

One of the contractors here has spoken to the supplier manager (who works for the client), he reckons that what the agency are doing is underhand and that they're probably counting on everyone just going along with it as that will then be acceptance of the new terms. Another contractor has requested he's transferred to one of the other agencies and that's happening next Monday. I don't want to write any details as to what others are doing at this point in time as it's still up in the air. There's some good guidance on the payontime website.

[tim123]

One of the contractors here has spoken to the supplier manager (who works for the client), he reckons that what the agency are doing is underhand.

Maybe it is, but I don't believe that you would have the sympathy of a judge if you took this matter to him.

Payment withing 14 days is much quicker than most creditors get and the actual quantifiable loss to you, for payment 7 days late, is about 10 quid per invoice.

If you don't accept this change the odds are that the agency are going to do it anyway, and what then?

If you try to go to a court to about the breach it will be rectified by the time you get there (and the judge will not be happy at you for wasting his time).

So all that you have is the interest. Are you going to go to court every month for your 10 quid?

tim

[Lucifer Box]

Agree with tim123 here. You won't get any sympathy complaining about having to wait 14 days to get your money. My largest client has strict 90 day payment terms and if you don't like it you can push off somewhere else.

Okay, so maybe it's a bit underhand but it's not really that bad and is hardly the end of the world. Relax and concentrate on making sure they pay when they say they will.

[Mailman]

If you try to go to a court to about the breach it will be rectified by the time you get there (and the judge will not be happy at you for wasting his time).

Why does it not surprise me you are on the side of the agents?

Another way to look at this would be to say the judge wont be too happy you have had to take the agent to court over an issue that should have been resolved before hand by the agent not changing the contract without agreement.

As Ive said before Tim, you must be the ultimate employee...always doing as you are told and never asking questions

Mailman

[tim123]

Why does it not surprise me you are on the side of the agents?

Where did I say that the agent was in the right?
I just said that, for all practical purposes, there was nothing you could do to stop it happening. Even if it were possible to use this breach to terminate the contract, that would be a stupid thing to do unless you already wanted to terminate and were looking for a legal reason

Another way to look at this would be to say the judge wont be too happy you have had to take the agent to court over an issue that should have been resolved before hand by the agent not changing the contract without agreement.

No he won't be happy that agreement couldn't be reached, but the effect here is tiny. The judge will be unhappy with both partíes, but he will be most unhappy with the person who started the action over a triviality.

As Ive said before Tim, you must be the ultimate employee...always doing as you are told and never asking questions
Mailman

I take the view that if I want to work, I work in a way that clients want. If I don't do that the alternative is sitting at home. Walking out on a client because of a minor dispute with the agent is silly.

tim