Agency not paying invoice because timesheet unsigned for 2 months, client dispute

**TykeMerc** · 6 October 2010, 15:01

Your contract was with the Recruitment firm, you can only chase them and should do so. Chasing the end client is their responsibility not yours as they have the commercial relationship with the client.

If you were Opted IN then they can't refuse to pay you.

**asn187** · 6 October 2010, 15:30

Hi TykeMerc,

Is the opt out on a per contract basis?

Or just a general one that I couldve signed a year ago with the Recruitment agency, i'm not sure if I did though.

**SueEllen** · 6 October 2010, 15:33

Originally posted by asn187 View Post

Hi,

I'm a developer with a Ltd company, who worked for a digital agency through a Recruitment agency. I've been contracting for a number of years, multiple times in different digital agencies

However, my last 2 invoices at this particular agency (from August) are unsigned and therefore the recruitment agency hasn't paid them for over 2 months now.

It turns out that the agency doesn't want to pay as they are questioning the quality of the work I done.

They actually wanted to extend me at the last moment b4 I took on another contract so this is a little different from their line right now. I think under great pressure, working longer than expected I did a great job.

What can I do to recover this money, considering I have nothing against the Recruitment agency and the digital agency who I worked for are technically not the client of my LTD company?

1. Check the agent is solvent.
2. Write a letter sent by recorded delivery reminding them of the unpaid invoices and that they should pay you within 14 days
3. After 14 days add interest to the invoices and resend them with another letter by recorded delivery. This letter should mention that it's a "Letter before action" and inform them that if they are not paid within 7 days you will take recovery action which may include court action, and they will be liable for all costs.
4. After those 7 days decide whether to get a debt collector involved or take them to court. (Debt is quicker but could cost you more if they can recover the money.)

To calculate the interest owed on each invoice and extra charges you can add go to the Pay on Time website.

Edited to say: Regardless of whether you opted-in or out they should actually inform you in writing preferably by letter that your work is unsatisfactory and why it is. If they do it verbally then they are playing around and are waiting for you to take some action against them to force them to pay up.

**asn187** · 6 October 2010, 16:00

Originally posted by SueEllen View Post

Edited to say: Regardless of whether you opted-in or out they should actually inform you in writing preferably by letter that your work is unsatisfactory and why it is. If they do it verbally then they are playing around and are waiting for you to take some action against them to force them to pay up.

I agree, I had to chase and just now found at that the reason is because the client is disputing the work.

If I am opted in... can I still take legal action?

This is really stressing me out, as I do work b1oody hard. The 2 weeks they are disputing a day didnt go by when I left before 7pm, feel as if its a slap in the face and the agency client has "stolen" my hard work.

**SueEllen** · 6 October 2010, 17:42

Originally posted by asn187 View Post

I agree, I had to chase and just now found at that the reason is because the client is disputing the work.

If I am opted in... can I still take legal action?

You are opted in they, the agency, have to pay you regardless.

So start the ball rolling - you need to give them a reasonable amount of time to show that you have negotiated with them and are reasonable before taking legal action. While email shows this sending letters by recorded delivery means there is no dispute over this. Believe it or not people claim not to receive emails even though they have answered them.

The agency could require your company, depending on the wording of the contract between you, to help them if they have a payment dispute with the end client.

Originally posted by asn187 View Post

This is really stressing me out, as I do work b1oody hard. The 2 weeks they are disputing a day didnt go by when I left before 7pm, feel as if its a slap in the face and the agency client has "stolen" my hard work.

Well whining about it won't get you paid. Write a letter tonight demanding payment, edit it in the morning and then go to the post office and post it.

Letter needs to be short to the point. It should mention the first date of contact with the agency about the dispute and also should remind them that you are opted in to the The Conduct of Employment Agencies and Employment Businesses Regulations 2003 so regardless of what the client says they have to pay you.

**asn187** · 6 October 2010, 18:02

Originally posted by SueEllen View Post

Letter needs to be short to the point. It should mention the first date of contact with the agency about the dispute and also should remind them that you are opted in to the The Conduct of Employment Agencies and Employment Businesses Regulations 2003 so regardless of what the client says they have to pay you.

Thank you for your patience.

And if I am opted in can I still take this action you mention above with success?

As I may have opted in, in another contract with this Recruitment agency over a year ago.

Would that agreement still apply to this one?

**TykeMerc** · 6 October 2010, 18:38

Originally posted by asn187 View Post

Thank you for your patience.

And if I am opted in can I still take this action you mention above with success?

As I may have opted in, in another contract with this Recruitment agency over a year ago.

Would that agreement still apply to this one?

You're automatically Opted IN unless you specifically Opt OUT, in writing (on paper) before you're introduced to the client (an interview qualifies as being introduced) and you have to Opt OUT voluntarily. It's rare for an agent to get the Opt OUT stuff right, you could always ask for a copy of the signed doc if they claim you did opt OUT, odds are they won't have it.

Opted IN you can take legal action, but odds are being opted IN you won't have to as it provides you with protection. Agencies like you to opt OUT so that you lose the protection of the regulations so they pull all sorts of tricks to get contractors to opt OUT.

**asn187** · 6 October 2010, 18:50

Thank you for all your responses I have been taking them on board and reading up.

This is the time-line (which I have proof for e.g. emails):

Telephone interview on the 14th August with the digital agency client (arranged from a recruiter email sent the day before organising it)
Start of work on 15th August
Contract received on 19th August back dated to the 15th.

The contract heading reads:
AGREEMENT WITH THE LIMITED COMPANY CONTRACTOR (TERMS OF ENGAGEMENT)
OPT OUT VERSION
These Terms are for use where the Consultancy will not be under the direction, supervision or control of the client i.e. the arrangement meets the Inland Revenue tests of self-employment and the limited company contractor has opted out* of the protection of the Conduct Regulations 2003

To update I previously, in May signed an opt out notification when working for this recruiter for another digital agency.

Does that opt out apply to this contract?

**SueEllen** · 6 October 2010, 19:42

Originally posted by asn187 View Post

Does that opt out apply to this contract?

To be honest it doesn't matter. The reason being is most people bluff and even lie to get out of paying companies money they owe.

After all they didn't send you a letter/email/tell you after your first week of unsatisfactory work when all the rest of your work was satisfactory did they? It's odd that your work was suddenly unsatisfactory when you were coming to the end of your contract and you refused the renewal they offered you?*

Send the agency the letter missing out mentioning The Conduct of Employment Agencies and Employment Businesses Regulations 2003 if you aren't sure.

The law on things like this is done on the balance of probabilities. And regardless if they insist in sending you a solicitors letter back or no response, then take the steps I've mentioned ignoring their response. You need to decide if you want to go to court or use a debt collector if it comes to that.

*It helps if you have this renewal offer in writing but doesn't matter if you don't as it will only help if you wanted to go to court.

Agency not paying invoice because timesheet unsigned for 2 months, client dispute