payment of weekly invoice stops

[Sid]

Hi,
If my client stops paying me(because of internal disagreement which manager's budget pays for my extension), what are my legal options? Should I stop work immediately, or gently remind my reporting manager but continue work till the budget issue is resolved?

[LisaContractorUmbrella]

What are the payment terms within the contract and have these been breached?

[jmo21]

What are the payment terms within the contract and have these been breached?

Surely the OP is correct to be worried?

If neither department has budget then I'd rather know now, rather than wait til they breach payment terms.

This might also focus the issue in the minds of the client as opposed to letting it drag on - either letting you go, or sorting out who pays.

[northernladuk]

Only you can make that decision but have a think about a couple of factors...

How much risk are you willing to take? If you stop work you will definitely not be paid, at least if you go in you have a chance of getting paid. If it all goes wrong and they don't pay you all you will have lost is a week sitting at home (or however long).

What is the situation with your contract? If you are contracted they are legally obliged to pay you, regardless of budget so I don't think stopping work will really achieve anything but give you a week off.

I don't think some internal wrangling will mean that you will not get your money eventually. It is not like they have no budget or are refusing to pay you. You have a legal binding contract, the must pay you if you work. You don't care who's budget it is and they will sort it at some point. Internal wrangling is not reason enough for you not to be paid and I am sure their legal and financial depts will also realise this.

I think some fairly strongly worded mails wouldn't go a miss though, but for a week or two I wouldn't jeopardise my relationship with my client over this. Budget arguments are hardly new and definitely not the end of the world. Maybe try and get something from their finance dept to confirm you will be paid one way or another and give them a deadline before you start adding interest.

That is MHO anyway. Am sure someone will come along and tell you to play hardball.

What is your relationship like with your client like this issue aside? Always been tense or is this just a blip in a good working relationship?

[LisaContractorUmbrella]

Surely the OP is correct to be worried?

If neither department has budget then I'd rather know now, rather than wait til they breach payment terms.

This might also focus the issue in the minds of the client as opposed to letting it drag on - either letting you go, or sorting out who pays.

We'd need more info really but I read it as an internal squabble between bean counters rather than the company not having the cash to pay the OP but even so I can't really see how you can complain if they are within their agreed contract terms - if payment terms are 30 days and they are arguing over which cost centre should take the hit on day 7 I'm not really sure you necessarily have much legitimate cause for complaint. If, on the other hand, you have reason to suspect that the company doesn't actually have the money to pay you that's a different scenario.

[TheFaQQer]

Surely the OP is correct to be worried?

If neither department has budget then I'd rather know now, rather than wait til they breach payment terms.

This might also focus the issue in the minds of the client as opposed to letting it drag on - either letting you go, or sorting out who pays.

The contract is with the company, though - I don't care who pays for my services within the company, that's for them to fight over. As long as I have a valid contract, and there is work to do, then I do the work, I bill the company.

If the client hasn't breached the contract, then there isn't much you can do - you either walk (and then you are possibly in breach of contract) or you wait until they do and then argue it.

[kevpuk]

+1 to comments above - fair enough to be aware of a potential scenario that may impact payment, but - at this stage, at least - there is not currently an issue to my mind.

[Sid]

I get paid weekly and the weekly- invoice clear off on a friday. So, I would not know till Friday of a week if I have got paid for the week before.
If they would then decide to let go of me then I would have already worked without pay for 2 weeks.

Though I have a got relation regards to work with the client, its always been a pain during contract extensions.

[LisaContractorUmbrella]

I get paid weekly and the weekly- invoice clear off on a friday. So, I would not know till Friday of a week if I have got paid for the week before.
If they would then decide to let go of me then I would have already worked without pay for 2 weeks.

Though I have a got relation regards to work with the client, its always been a pain during contract extensions.

But surely you would get your timesheet signed off on a Friday and would then know that you are entitled to receive payment for the work that you have done. Are you working through a recruitment agency or direct with the client?

[Dominic Connor]

If you don't work you don't earn

The first action should be to look for another contract, since at the moment there is a realistic chance you will be paid, but not certainty.

A lot depends upon how much they need your work.

If they will suffer serious and immediate impact, then saying "I'm going home now, let me know when it is sorted" will get it sorted.

Notice I say "immediate impact", like the servers just stopping.

It is not enough that your departure will cost them money, because that will just arm one side in the squabble with "an now it is costing us £X and you may end up reinforcing the idiot who is stopping you being paid."