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Haven't been paid as client hasn't paid agency...how is that my problem!

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    Haven't been paid as client hasn't paid agency...how is that my problem!

    Been working for a great company since may. Today was supposed to be my last day but I've been given an extension by the client this morning (happy days).

    However, checked my business account and found out I hadn't been paid. Called agency payroll department to find out why as all information was handed in on time ( I have scanned copies of all time sheets) . Also I am paid 30 days after invoice (trust me that will never happen again!)

    Got an email from payroll saying that the 'client hadn't pay the agency for my invoiced time period and they were waiting for that before they would release funds'.


    I am tempted to speak to my boss about this as there genuinely could have been an oversight by them. Additionally I am tempted to mention 'I can't come work on Monday because the money needed to pay for my travel has not been deposited into my account'.

    I am fully aware that this is NOT my problem as my contract is with the agency and NOT the client (as otherwise I would would be working for the client direct).

    I am trying to draft an email that will keep things professional I would appreciate your input.

    thanks

    #2
    How about read your contract and understand your Opt in/out situation firstly?

    Mistakes happen so I would keep it very polite at this stage. It's not like you've left so need to come in all guns blazing. You are still there so obviously valued. They aren't trying to screw you over. I would guess you have no hints the company is in trouble or anything either.

    If payments have been fine up to now I would treat it as a slight hitch. Ask the agent when they expect payment and can they chase the client. The agent hasn't had his money either remember so they will be just as eager to chase. There is the situation the agent is lying and withholding but if the relationship has been good so far I would give them the benefit of the doubt.

    Give them a bit of time to sort it out then go chasing IMO.

    I am fully aware that this is NOT my problem as my contract is with the agency and NOT the client (as otherwise I would would be working for the client direct).
    BTW I don't believe this. Not being paid IS your problem whatever the root cause is. This is why you need to understand you contract and your opt in/out situation so you know exactly where you stand.
    Last edited by northernladuk; 29 August 2014, 09:46.
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      #3
      ...

      Originally posted by strawberrysmoothie View Post
      Been working for a great company since may. Today was supposed to be my last day but I've been given an extension by the client this morning (happy days).

      However, checked my business account and found out I hadn't been paid. Called agency payroll department to find out why as all information was handed in on time ( I have scanned copies of all time sheets) . Also I am paid 30 days after invoice (trust me that will never happen again!)

      Got an email from payroll saying that the 'client hadn't pay the agency for my invoiced time period and they were waiting for that before they would release funds'.


      I am tempted to speak to my boss about this as there genuinely could have been an oversight by them. Additionally I am tempted to mention 'I can't come work on Monday because the money needed to pay for my travel has not been deposited into my account'.

      I am fully aware that this is NOT my problem as my contract is with the agency and NOT the client (as otherwise I would would be working for the client direct).

      I am trying to draft an email that will keep things professional I would appreciate your input.

      thanks
      Too early to involve the client, they probably wouldn't be interested anyway (even if they make the right noises).
      1. What does your contract say?
      2. Did you Opt Out of the Conduct of Employment Agencies Regulations?
      The course you take is dependent upon the answers you gave to these questions.

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        #4
        Originally posted by strawberrysmoothie View Post
        Haven't been paid as client hasn't paid agency...how is that my problem!
        It's your problem because you want the money and haven't got it. It shouldn't be your problem, but it is.

        Originally posted by strawberrysmoothie View Post
        I am tempted to speak to my boss about this as there genuinely could have been an oversight by them.


        Originally posted by strawberrysmoothie View Post
        Additionally I am tempted to mention 'I can't come work on Monday because the money needed to pay for my travel has not been deposited into my account'.
        If you run your business that badly that you need the money to get to the client, then you need to rethink how you work.

        Originally posted by strawberrysmoothie View Post
        I am fully aware that this is NOT my problem as my contract is with the agency and NOT the client (as otherwise I would would be working for the client direct).
        Well, evidently, it IS your problem.

        What does the contract say about payment in the event that the agency doesn't get paid? What is your opt out status?

        Originally posted by strawberrysmoothie View Post
        I am trying to draft an email that will keep things professional I would appreciate your input.
        Start by having a search around the forums for the numerous threads about bad debt and dealing with it. Have a search for "dunning" (note to Safe Collections ). Eventually, they all lead back to looking at The Late Payment of Commercial Debts Regulations 2013 - Pay on Time and following their guidance, while chasing both agency and client if necessary.
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          #5
          Originally posted by TheFaQQer View Post
          It's your problem because you want the money and haven't got it. It shouldn't be your problem, but it is.





          If you run your business that badly that you need the money to get to the client, then you need to rethink how you work.


          Well, evidently, it IS your problem.

          What does the contract say about payment in the event that the agency doesn't get paid? What is your opt out status?


          Start by having a search around the forums for the numerous threads about bad debt and dealing with it. Have a search for "dunning" (note to Safe Collections ). Eventually, they all lead back to looking at The Late Payment of Commercial Debts Regulations 2013 - Pay on Time and following their guidance, while chasing both agency and client if necessary.
          I agree it is my problem. That's why I'm trying to solve it now. Thanks for the info for dunning.
          Last edited by strawberrysmoothie; 29 August 2014, 10:13.

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            #6
            I think threats of legal action are probably premature at this point, since it's more likely cockup than conspiracy but keep it up your sleeve until making enemies is no longer a concern.

            As for Opt Out or not, nice idea but any opt out you or the agency may think you've signed is almost certainly invalid which makes it a poor weapon on both sides. First read your contract carefully just in case you've signed a clause saying that payment is dependent on receipt of funds; that would probably override the provisions of the agency regs if challenged.

            But I share others' concerns about not having reserves for known (or even hoped-for) business expenses. You are legally required to be trading solvently at all times, even if you have to put money back into YourCo to cover them: that's what Director's Loans are supposed to be used for.
            Blog? What blog...?

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              #7
              Originally posted by malvolio View Post
              As for Opt Out or not, nice idea but any opt out you or the agency may think you've signed is almost certainly invalid which makes it a poor weapon on both sides. First read your contract carefully just in case you've signed a clause saying that payment is dependent on receipt of funds; that would probably override the provisions of the agency regs if challenged.
              If the opt out hasn't been done properly, then the OP is opted in, so should be protected by the regulations. That makes it quite a strong weapon from the contractors perspective - they have the statutory protection.

              I'd also disagree with your presumption that contract trumps statute, and would suggest that if the OP was opted into the regulations (which is the most likely situation, given the hassle of getting an opt out done properly), then the agency wouldn't be able to rely on the contract as a defence when there is a statutory protection in place.
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                #8
                ...

                Originally posted by TheFaQQer View Post
                If the opt out hasn't been done properly, then the OP is opted in, so should be protected by the regulations. That makes it quite a strong weapon from the contractors perspective - they have the statutory protection.

                I'd also disagree with your presumption that contract trumps statute, and would suggest that if the OP was opted into the regulations (which is the most likely situation, given the hassle of getting an opt out done properly), then the agency wouldn't be able to rely on the contract as a defence when there is a statutory protection in place.
                ^^^ Exactly, IMV, not opting out renders any contradictory clauses in the contract unenforceable.

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                  #9
                  Quite. Statute trumps. You cannot sign away a legal right.

                  What you can do is grant a similar right or indemnity to the counter party; generally of course this will be unenforceable if reducing you rights under law.

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                    #10
                    *snip*
                    Last edited by strawberrysmoothie; 29 August 2014, 10:58.

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