Not getting paid....heyalp!

[ITDolly]

Hello,

I've been a contractor for 11 years and I use an umbrella company (I'm a coward).

I was supplied to a client via an agency and had no problems until I had to make a compulsory switch to a service provider as the end client decided on a preferred list.

The current terms are that payment is made according to a payment schedule which these people have sent me. There are two payment runs: one at the beginning of the month, and one mid-month for "direct contractors" (me). It is on these runs that they say they must be in receipt of the invoices for settlement a week before the run. That said, they are in receipt of 4 invoices from my umbrella company (my umbrella co invoices weekly)

Last month I wasn't paid on either run and I had to kick up a stink for them to even bother to pay me anything before Christmas. They settled all my outstanding invoices.

The latest payment run was yesterday - on which they have only settled ONE of the invoices (I am expecting 3)

Have I any recourse here. My end client really isn't involved and this is not a problem with my umbrella company (been with them years, they are very straight and prompt)

Getting tired of wondering whether I am going to get paid at all, and now how many invoices they feel like paying.

Appreciate any help or advice please. PM me if you need specifics.

[cojak]

Hi ITDolly,

There has been a number of contractors with the same problem.

Take a look at these threads for any immediate help:
http://forums.contractoruk.com/accou...d-opt-out.html
http://forums.contractoruk.com/busin...ltrincham.html

Ignore the reasons for non-payment, the advice for getting your money is basically the same: dunning and debt recovery.

As an aside, if any regular would like to create a FAQ for agency non-payment I'll make it a sticky...

[ITDolly]

Thanks for the links.

I will ask my umbrella company what their invoice terms are but to be honest I've never had a problem with them before (I was paid weekly when the agency was Reed)

I am familiar with the "Letter Before Action" and I will send them one to cover myself. I sent a breach of contract email to them last month (Since their schedule of work said "payment will be made in accordance with the payment schedule"... and wasn't)

Additionally, this new company is a consultancy so they are supplying their own permanent staff (while still billing them out at contract rates I don't doubt) so I have also suggested to them that I can construe their non-payment/adherance to payment terms as constructive dismissal (considering I am forced into a financial situation I need not be in) so that they can get rid of contractors they don't make anything from (like me and a few others they adopted during the changeover) in favour of sticking one of their permies in at £20k a year.

Anyways, I'll look into debt recovery.

Any other input welcome. Appreciate it.


Thanks.

[ITDolly]

Ooh sorry, another question. If the contract is between them and my umbrella company - can I initiate action of any type without involving my umbrella?

Sorry, probably a really dumb question but want to make sure.

[Wanderer]

Speak to the client and tell them you aren't getting paid. If it's a preferred supplier then they will put a rocket up them - they don't want the umbrella going bust and losing all their contractors because of it....

[ITDolly]

I have done everything suggested here:

- told the end client so they can possibly light their rocket
- issued a Letter Before Action

we'll see what gets coughed up.

I have in writing from the "Financial Controller" of the offending company (from last month when they didn't pay me at all) that at every pay run he "clears the decks down of all invoices received" - so the best they can come back with is that they never received the outstanding invoices. I've attached them to my LBA anyway.

LBA sent by post, email and by hand to the "representative" here (assuming he comes in on Fridays)

Fingers crossed.

[Svalbaard]

If you are an employee of an umbrella company, shouldn't they umbrella be pursuing this on your behalf?

[Steven@Parasol]

If you are an employee of an umbrella company, shouldn't they umbrella be pursuing this on your behalf?

Svalbaard is right, what support are you getting from your umbrella?

Have you got an over arching contract of employment with your umbrella?

And what access do you have to you umbrellas HR team?

[ITDolly]

Hello,

Sorry to leave this so long - I managed to get things sorted back in January - but they have just done it to me again! I am just absolutely distraught. Everyone else in the building has been paid except a few contractors and I am one of them.

When they did it to me back in January I put them on notice of legal action for the duration of the contract (basically meaning, if you do this again I will not give you any more notice)

I have given you a reasonable opportunity to resolve my complaints regarding payment of invoices and despite this, invoices remain outstanding.
I have now been left with no alternative but to seek legal redress through the courts.
Unless this matter is satisfactorily resolved within the next 7 days I will initiate legal proceedings and seek advice for additional redress without further notice.

It's not fair on the company I'm working at that I'm having these problems, but I really am at my very last tether, I find the situation just completely intolerable.

Since I keep going through this, I'm considering withdrawing my services and issuing small claims court action against these people for the remainder of the contract period (2 months left).

Am I sounding reasonable? I'm really not feeling reasonable at ALL. In this day and age getting paid should not have to even be a consideration.

Just finding it very difficult to continue doing my job when all this is going on - I know that sounds dramatic but you know, I don't think people should have to put up with this.

Would appreciate any advice regarding how I am exposing myself while working under a contract currently in breach.

[ITDolly]

Svalbaard is right, what support are you getting from your umbrella?

Have you got an over arching contract of employment with your umbrella?

And what access do you have to you umbrellas HR team?

And p.s. none w-h-a-t-s-o-e-v-e-r, the Umbrella Company, (GIANT) say "it's not us it's them"