agent delaying payment

[AntiqueGeek]

Hi, newbie here. I am an experienced contractor, but have never come across such a situation before.

I have been working at a small company for a year now and just got my second renewal last week.

Every month I submit a signed timesheet and invoice from (my limited company) to my agent who pays within 10 days.

However, my payment has not been received as expected. I have chased the payment today to be told that the client is behind and hasn't paid last months invoice and so my payment will be delayed. It would appear that this situation has been bleak for some time, and today is the first I knew of this.

I am about to read my contract but very grateful for any words of wisdom.

[Sausage Surprise]

If an agency can't pay you until they have been paid by the client I'd be worried. Your contract is with the agency not the client and unless the contract says you won't get paid until they do, then you should be getting paid on time.

[Contreras]

Hi, newbie here. I am an experienced contractor, but have never come across such a situation before.

I have been working at a small company for a year now and just got my second renewal last week.

Every month I submit a signed timesheet and invoice from (my limited company) to my agent who pays within 10 days.

However, my payment has not been received as expected. I have chased the payment today to be told that the client is behind and hasn't paid last months invoice and so my payment will be delayed. It would appear that this situation has been bleak for some time, and today is the first I knew of this.

I am about to read my contract but very grateful for any words of wisdom.

Read the contract. What does it say about payment terms?

Did you agree (in writing) to opt-out from Conduct of Agency Regs.?

You can invoice for late payment interest on overdue debt. Search this forum for 'payontime' and 'dunning'.

[AntiqueGeek]

Hello all, thanks for replies I am very very grateful.

I cannot see anything in writing/email about Conduct of Agency Regs, but I will search for this along with the suggestions about payontime & dunning.

In terms of the contract, I have typed the relevant parts (I think) below.

STANDARD TERMS AND CONDITIONS BETWEEN
AGENT LTD and AntiqueGeek Ltd

1. DEFINITIONS

"Authorised Representative" meansthe Appointed Manager at

“The Client”

"The Company" means AGENT LTD, address

"The Client" means the person firm or corporate body together

with any subsidiary or associated company as defined by the

Companies Act 1985 (as amended) requiring the services of the

Contractor

"The Contractor" means Operatives Company name and

address, the limited company providing the services of its

employees to the Client

"Assignment" means the period of engagement

"Operative(s)" means any individual deployed by the Contractor

to the Client, who is an employee of the Contractor

"The Fee" means the gross fee which shall be payable by The

Company to the Contractor in respect of the services performed

by the Operative(s)


.....

4. FEES

4.1 The Contractor will receive payment from the

Company for an Assignment at the rate specified in

the Contract Confirmation Note, plus VAT where

appropriate.

4.2 The Company shall settle all invoices rendered by

the Contractor relating to the provision of services by

the Operative(s) within 14 days of receipt of the

same by the Company

4.3 All payments will be made to the Contractor.

My schedule shows my rate and monthly payment.

I also have an email from the agent which states:

Our payment process – basically I’ll need timesheets on a monthly basis, and we have payment runs on the 10th of each month (or next working day). So if you get in your signed timesheets by the 1st of each month (or next working day), payment will be made on the 10th (or next working day).

[northernladuk]

Start doing some digging on your client to see what's happening with it's finances. Might be time to bail. This won't get resolved quickly so either you quit cause you are not going to get paid sometime in the future or the agent will bin you cause the client isn't paying anymore so don't want to be held liable. Either way it's not looking good so check the state of your client asap.

Maybe off the back of that I would seriously consider not going in until it's resolved and start looking for something new as well. If this get's worse you are just not going to get paid so need to cut your loses.

Looks like this could be a lot bigger issue than one late payment. Don't wait too long before taking some decisive action.

[mrv]

If you did not opt out and have a signed timesheet, agent must pay, no excuses.

[FatLazyContractor]

Hi, newbie here. I am an experienced contractor, but have never come across such a situation before.

I have been working at a small company for a year now and just got my second renewal last week.

Every month I submit a signed timesheet and invoice from (my limited company) to my agent who pays within 10 days.

However, my payment has not been received as expected. I have chased the payment today to be told that the client is behind and hasn't paid last months invoice and so my payment will be delayed. It would appear that this situation has been bleak for some time, and today is the first I knew of this.

I am about to read my contract but very grateful for any words of wisdom.

What is your opt in/out status?

[Contreras]

4.2 The Company shall settle all invoices rendered by the Contractor relating to the provision of services by the Operative(s) within 14 days of receipt of the same by the Company

I.e. 14-day payment terms, unless there is another clause making it conditional upon client payment.

Payroll cycle is technically irrelevant. If the contract states N-day payment terms then that's what it is.

Politely remind them of this, if that doesn't work then politely remind them that statutory interest will be due, if that doesn't work then go ahead and invoice for interest or speak to a collections agency.

[northernladuk]

Remember that is just last months invoices. What's the chance of the month you are working getting paid as well?

[rootsnall]

A bit of a disclaimer in that I haven't dealt with this for a few years, but it sounds like if you haven't opted out ( and it doesn't sound like you have ), and you have your signed timesheet from the client, then the agency have to pay you regardless of if they have been paid by the end client. I have had a similar one with a flakey agency, and one that got quite nasty with a contract direct to a small consultancy. In both cases I resolved it with politely threatening letters quoting the legalities as well as I could muster, from googling, some advice off here I think, and also some useful stuff via the PCG. You'll get your money as long as the party who is legally liable is solvent, as in the end you can apply to wind them up if they don't pay up. I think your target is to get your money and get out asap. It might well be that things can be sorted out and the contract can roll on, but unless its very handy or very lucrative then I'd be looking to get out of there asap.

ps. what them lot said above

ps2. in my agency one, I got paid and got out, some others stayed around and eventually lost a month or two of money when the agency went into administration