NHS not paying up for IT contract

[chuck32]

Hi all, I've been working a IT/programming contract for the NHS for the past two months. My contract is actually with the recruitment company who pay my invoices and the NHS pays the recruitment company. The recruitment company paid my first invoice fine but I got a call from them today saying that the NHS have not paid them at all yet and they paid that first invoice out of their own pocket.

My next invoice is due to be paid next Thursday. I told the recruiter that I've held up my end of the bargain, this is certainly not because the NHS aren't happy with my work or anything like that, so they should pay me regardless of what the NHS does because thats not my responsibility. He then suggested that if I do not get paid I could just stop working, but that really wouldn't be ideal. Its possible the payment will be sorted before next Thursday so I didn't want to make a big deal of it on the phone incase it turns out it was just an accounting software error or something stupid like that..

If I don't receive payment for the second invoice next thursday and have to stop working until I do get paid is there any action I can take against the recruiter for not paying me despite me having held up my end of the contract? Do I have any leverage here? i.e. something I can say to the recruiter "if you don't pay me then.."? (I'm not willing to smash anyone's kneecaps btw).

Hope that all made sense, any suggestions would be much appreciated, thanks!

[mudskipper]

Hi all, I've been working a IT/programming contract for the NHS for the past two months. My contract is actually with the recruitment company who pay my invoices and the NHS pays the recruitment company. The recruitment company paid my first invoice fine but I got a call from them today saying that the NHS have not paid them at all yet and they paid that first invoice out of their own pocket.

My next invoice is due to be paid next Thursday. I told the recruiter that I've held up my end of the bargain, this is certainly not because the NHS aren't happy with my work or anything like that, so they should pay me regardless of what the NHS does because thats not my responsibility. He then suggested that if I do not get paid I could just stop working, but that really wouldn't be ideal. Its possible the payment will be sorted before next Thursday so I didn't want to make a big deal of it on the phone incase it turns out it was just an accounting software error or something stupid like that..

If I don't receive payment for the second invoice next thursday and have to stop working until I do get paid is there any action I can take against the recruiter for not paying me despite me having held up my end of the contract? Do I have any leverage here? i.e. something I can say to the recruiter "if you don't pay me then.."? (I'm not willing to smash anyone's kneecaps btw).

Hope that all made sense, any suggestions would be much appreciated, thanks!

It really depends what your contract says about payment. Have a read of your contract and see what it says.

[BrilloPad]

Are you opted in or out?

Are there other contractors around you at the gig that could ask? Have they got similar issues?

I did get this at the last gig. The bank handily had a lady who handled relations between contractors and agencies. I gave her a quick call - she sorted it all out. Is there something similar?

[psychocandy]

Opted out is the biggie here. And whether you've got signed timesheets for the period in question.

If you're not opted out and have timesheets you're position is very strong. As you said, not your problem, agency pay up.

If it was me, I'd make this fact clear to the agency and make it clear that THEY needed to sort things out. I'd also advise them that give it a week and I'd stop turning up.

Also, hows relationship with immediate client manager? If its ok, I'd be letting them know the score and pitching it as "sorry I've given all parties a week to sort out and I hope it doesnt come to this but Im sure you understand".

[dx4100]

Opted out is the biggie here. And whether you've got signed timesheets for the period in question.

If you're not opted out and have timesheets you're position is very strong. As you said, not your problem, agency pay up.

If it was me, I'd make this fact clear to the agency and make it clear that THEY needed to sort things out. I'd also advise them that give it a week and I'd stop turning up.

Also, hows relationship with immediate client manager? If its ok, I'd be letting them know the score and pitching it as "sorry I've given all parties a week to sort out and I hope it doesnt come to this but Im sure you understand".

This ^

[SueEllen]

Regardless of your opt in status many contracts actually contain clauses that state if the client doesn't pay the agency you have to stop working if instructed to do so.

I suggest you read your contract see if a clause exists, email the agency and get them to confirm they want you to do this in writing, and then tell the appropriate NHS people. If the NHS don't pay them, you shouldn't work until they do as your contract is with the agency.

If the clause doesn't exist you still need to talk to the NHS people as the agency can terminate your contract.

Also it is normal for agencies to pay you before they get paid regardless of your opt-in status. This is why we use agencies. With government organisations unlike private companies the agency knows they will eventually be paid.

BTW I've had a couple of clients I've had to do this with, both paid up once they realised I wasn't working and I started working again. (One was direct.) Another client got upset about it so I said fine I would leave if they wanted and did, they still had pay.

[Old Greg]

The "NHS" does not exist as a contracting authority but is a brand applied to a confederation of separate legal entities. So who is the contracting authority - most likely an NHS Trust or NHS Foundation Trust? It is common enough practice for some trusts to seek to pay a proportion of their suppliers late - usually the biggest pushovers.

The agency should be applying late penalties - usually this stops them being the pushover so someone else gets the tulip treatment.

As someone else said, you should be making your main senior client contact aware of the situation and consequences - in a polite trying-to-solve-a-problem kind of way.

You should also be demanding payment according to your contract from the agency, assuming you have signed timesheets and that there is nothing unusual in the contract. You should give them a defined period to pay you and otherwise escalate. Search for "dunning" in the forum. Also, is the agency small with potential cashflow problems. Have a look on duedil.com and you can sign up for a free trial for more info than the basics IIRC. You need to come to a view as to whether the agency is unwilling to pay or unable to pay.

[sharky]

Hi all, I've been working a IT/programming contract for the NHS for the past two months. My contract is actually with the recruitment company who pay my invoices and the NHS pays the recruitment company. The recruitment company paid my first invoice fine but I got a call from them today saying that the NHS have not paid them at all yet and they paid that first invoice out of their own pocket.

My next invoice is due to be paid next Thursday. I told the recruiter that I've held up my end of the bargain, this is certainly not because the NHS aren't happy with my work or anything like that, so they should pay me regardless of what the NHS does because thats not my responsibility. He then suggested that if I do not get paid I could just stop working, but that really wouldn't be ideal. Its possible the payment will be sorted before next Thursday so I didn't want to make a big deal of it on the phone incase it turns out it was just an accounting software error or something stupid like that..

If I don't receive payment for the second invoice next thursday and have to stop working until I do get paid is there any action I can take against the recruiter for not paying me despite me having held up my end of the contract? Do I have any leverage here? i.e. something I can say to the recruiter "if you don't pay me then.."? (I'm not willing to smash anyone's kneecaps btw).

Hope that all made sense, any suggestions would be much appreciated, thanks!

Hi had the same issue with NHS in Scotland turned out the the Department manager i was doing a Project for Sent the Invoice from the recruitment company to the IT dept as IT had set a Rule that all "IT expenditure" had to processed by the IT dept. (Rule was meant to cover departments buying Printers and Mobile phones NOT the costs of "The IT Guy" it had got from its own budget)

Invoice was going back and forth between the too had to have Chat with the Department manager that i was not an "IT expenditure" and to treat me the same as a Agency Nurse that seemed to Ring a Bell.

The recruitment company really need to chase the debt with the client Issue is between them but if you want to Help to fix this ask the agent for copy of the unpaid and take that to the head of the Department your in for friendly chat "can you help with this or im off the Project"

Also note the agents cut to what you getting any more 12% I would be looking for a Rate rise for helping the recover the
debt.