Client not paying

[barabis]

Hi there,

First of all let me say hello, I just joined up today.

I have a problem with a client that is not paying my agency.

I have read a couple of threads on here which do address some of my questions, so I'll provide this information first.

• I did sign the opt-out form
• My contract does state the agency will only pay if the client does

My issue is that I think my agency failed to protect me by carrying out adequate checks on the client and also failed to communicate some vital information. Had they acted differently I would not have completed a full month of work and therefore been far less exposed.

Here's a brief summary:

Because the client is a new business they imposed a weekly invoice cycle to avoid exposure to the risk of unpaid work over a protracted length of time.
The problem here is they never informed of this in any written or spoken communications, in fact they sent me a welcome pack with a monthly time sheet.

Client has at least one court ruling (maybe even two) against him in an action bought by another recruitment agency for unpaid work
When establishing a relationship with a new client should the agency not conduct some type of legal search?

Client provided fake address
Turns out the address provided by the client is a cafe, he also provided another address to another developer he didn't pay and this one was a concrete wall. I'm assuming they didn't ask for a proof of address.

He may have provided a fake name
There's a possibility that he didn't provide his real name. If so no proof of ID was requested.

I'd just like to get an idea of where I might stand if I were to argue negligence by the agency when conducting their initial screening of the client.

Obviously I will try to resolve the matter with them first and then look at getting legal advice. I will be joining the PCG later to get initial advice.

Thanks in advance!

[NotAllThere]

The trick is to do the due diligence before you lose money. If your contract states you won't get paid if the client doesn't pay, then I'm afraid you're stuffed. Learn from it and move on.

A lawyer may give you different advice, but the cost of recovery - in terms of cash, time and emotional drain - is unlikely to be worth it, even if you win.

[northernladuk]

Because the client is a new business they imposed a weekly invoice cycle to avoid exposure to the risk of unpaid work over a protracted length of time.
The problem here is they never informed of this in any written or spoken communications, in fact they sent me a welcome pack with a monthly time sheet.

That isn't unusual or a problem I wouldn't have thought. The agreement between you and the agent is separate to the agent and client. I am sure many agents do this so they get the money in their bank well before it is paid to the contractor.

Client has at least one court ruling (maybe even two) against him in an action bought by another recruitment agency for unpaid work
When establishing a relationship with a new client should the agency not conduct some type of legal search?

Did you do a legal search on the agent before you entered in to a business agreement with them?

Client provided fake address
Turns out the address provided by the client is a cafe, he also provided another address to another developer he didn't pay and this one was a concrete wall. I'm assuming they didn't ask for a proof of address.

He may have provided a fake name
There's a possibility that he didn't provide his real name. If so no proof of ID was requested.

Have a look at sites like Company Director Check - free company director search see if you can do your own digging. If they have a website have a look at the nominet entry for it as well. Amazing what you can find out when you start digging.

I'd just like to get an idea of where I might stand if I were to argue negligence by the agency when conducting their initial screening of the client.

Obviously I will try to resolve the matter with them first and then look at getting legal advice. I will be joining the PCG later to get initial advice.

Thanks in advance!

I didn't think you needed to argue negligence. They have to pay you as per the agreement and thats that. You don't have anything to prove except wave some signed timesheets and ask for your money. Start 'dunning' them, look at payontime.co.uk and start adding interest to your invoices and point out very strongly to the agent that it doesn't matter what the situation with the client is, that is their problem. You require payment and will be doing everything in your power to get it.

EDIT : Ughh... misread the original post. Thought it said they would pay you. Might have to forget the previous paragraph.

Not sure how much advice you will get with a retrospective membership. You could kinda understand it if they said sorry this happened before you registered so not much they can do. Worth a shot though as you should have PCG membership anyway.

[SimonMac]

It seems your anger is with the Client but directed at the agent, I can't believe I am going to say this, but they are in the same boat as you, as they would have lost money too, so you want to be working with them to recover any funds from the end Client than working against

[barabis]

Thanks for all the responses guys, it's the first time something like this has happened to me so I really appreciate getting other views.

The client has actually returned the signed timesheets since I posted, obviously that on it's own means bog all but here's hoping.

[Wanderer]

It sounds like a nasty situation. The scumbag agency has taken no risk at all and they want you to bear the brunt of this.

• I did sign the opt-out form
• My contract does state the agency will only pay if the client does

Did you sign the opt out BEFORE you were introduced to the client?

If not, I would try it on with the agency by claiming that the opt out wasn't valid and therefore their clause saying they don't have to pay if the client doesn't pay should be struck out.

[Zippy]

It sounds like a nasty situation.
Did you sign the opt out BEFORE you were introduced to the client?

If not, I would try it on with the agency by claiming that the opt out wasn't valid and therefore their clause saying they don't have to pay if the client doesn't pay should be struck out.

I agree with Wanderer. The opt-out question is very important.

I'd also be seeking written confirmation from the agency that they have received no monies for all your work. If they have received even a weeks worth you'll be entitled to your cut.

Hope it works out for you.

[northernladuk]

I'd also be seeking written confirmation from the agency that they have received no monies for all your work. If they have received even a weeks worth you'll be entitled to your cut..

That is a good point. How would you know if the agent got his money... I would hope as devious as they are I would hope they wouldn't stoop to lying about getting paid.

[JoJoGabor]

THis i s an interesting scenario that I haven't considered before. What options do you actually have to recover the money if you are opted out? You can't take legal action against the client as you dont have a contract with them, and the agency are meeting their contractual terms.

If you are legally opted out, is there ways to avoid this scenario? The only action I can suggest is to not turn up on site until you are paid your monies, but it sounds like the work is now complete.

[Zippy]

How would you know if the agent got his money...

I guess you'd have to sue to find out (and see what their defence was)? Nasty, messy etc (but inexpensive).