Recourse to claim payment

**northernladuk** · 30 June 2023, 16:23

Notice period is irrelevant. You get paid against a signed timesheet and you won't get one for work not done so you can forget all about that.

With regard to not getting paid then there isn't much you can do. If the client doesn't pay then the agency is not obliged to pay you. You'll just be on the end of a long list of people they own money they don't have. I don't like the fact the agency has cancelled the timesheet. That's wrong so just in the short term I'd question that even though the chance of you getting any money is remote. You want the process to do what it should regardless of the actual pay. If the agency says 'eventually' then you want a live timesheet as evidence.

No point going to court. It's expensive to do and they client hasn't the money to pay it anyway so pointless. You are in the lap of the gods here. I would work on the basis that you expect not to get paid and move on. If it does turn up then happy days.

**eek** · 30 June 2023, 16:29

First question - are you working through an umbrella or your own limited company

**Snooky** · 30 June 2023, 16:31

Did you explicitly opt out of the agency regulations (Conduct of Employment Agencies and Employment Businesses Regulations 2003) before being introduced to the client?

If not, as I understand it you're opted in by default, which means that the agency cannot withhold payment just because they haven't received it from the client, as long as you can show that the work was carried out. This is a statutory right so it overrides any commercial contract clause. The key thing is - do you have some kind of proof that you did the work and the client agreed that you did the work? A signed timesheet would be best but an email conversation with the client would also do, even if they didn't directly mention work approval but it was clearly implied that you'd done the work. If so, I'd insist on payment and pursue through the Small Claims channel if not forthcoming.

Happy to be corrected by others who know this area better.

**northernladuk** · 30 June 2023, 17:24

Originally posted by Snooky View Post

Did you explicitly opt out of the agency regulations (Conduct of Employment Agencies and Employment Businesses Regulations 2003) before being introduced to the client?

If not, as I understand it you're opted in by default, which means that the agency cannot withhold payment just because they haven't received it from the client, as long as you can show that the work was carried out. This is a statutory right so it overrides any commercial contract clause. The key thing is - do you have some kind of proof that you did the work and the client agreed that you did the work? A signed timesheet would be best but an email conversation with the client would also do, even if they didn't directly mention work approval but it was clearly implied that you'd done the work. If so, I'd insist on payment and pursue through the Small Claims channel if not forthcoming.

Happy to be corrected by others who know this area better.

Good point but the chances of this being done properly are probably nil. Before introduced is often the problem, them sending your CV is being introduced but often they'll ask you to sign it when you sign the contract. If that's the case then it's too late, you've been introduced and you are in. Need to check the chain of events very carefully.

Where the above might be true we've yet to see a single instance where pulling the Opt in/out status has made one iota of difference even if it did stand up. Payment, notice periods whatever. It just doesn't seem to be worth the paper it's written on.

**ukltdcon** · 1 July 2023, 00:02

it is through a limited outside, and it does have an opt-out clause for the agencies 2003.. not something I knew about although I did sign the contract at the end after CV, interview and offer.

**eek** · 1 July 2023, 07:52

Originally posted by ukltdcon View Post

it is through a limited outside, and it does have an opt-out clause for the agencies 2003.. not something I knew about although I did sign the contract at the end after CV, interview and offer.

In which case the opt-out is going to be invalid but you are going to have issues recovering the money.

Is there any phrase that says you will be paid by the agency only when they've been paid.

**Lance** · 1 July 2023, 09:45

Originally posted by ukltdcon View Post

Hi, recently started a contract and turns out the client having cash flow issues, i completed my first month and this was invoiced and paid, now finished the 2nd month the client notified me of the situation and CTO agreed that I would submit my timesheet and it would be signed off, and work is on hold. I have a record of this chat.

This morning I can see the agency has cancelled this timesheet, and assume it never got signed off. I still have a record that it existed.

My contract has a clause along the lines of

The Agency shall not be obliged to pay any Fee to the Consultancy unless an invoice has been
properly submitted by the Consultancy and until the Client has verified the execution of the Services.

Might also note that there is a 2 week notice clause, which neither the agency or client has given me any notice of termination. And the only way for me to submit an invoice is through the self-billing platform, which I can only submit a timesheet.

The agency have said I will get paid "eventually"..

Assuming this does not get paid in the next month, should I just forget about this and write it off or is there any grounds to eventually take it to court on non-payment?

it sounds like there are grounds but it will likely not get that far.

Do you have actual evidence? IE. A signed timesheet? Or just a record that it existed? This will key. You need evidence that work has been done. Without that evidence this is going nowhere.

**northernladuk** · 1 July 2023, 11:13

Originally posted by ukltdcon View Post

it is through a limited outside, and it does have an opt-out clause for the agencies 2003.. not something I knew about although I did sign the contract at the end after CV, interview and offer.

Sorry to sound harsh but you should. This is your job and your livelihood. Knowing how to be a contractor, how to run the business and all the legalities is your job. Not the bit you do on site for the client, anyone can do that, even the permies. Being a good contractor is knowing about the clause, what to do with it and how it affects you.

Do you know in what capacity you signed the contract? Do you realise you signed it on behalf of the LTD as a director and controlling person or did you sign it because you are doing the work? Was the contract in the name of the LTD or you personally. Would you have known the difference if it had your name and not your LTD?

**ukltdcon** · 1 July 2023, 15:26

Fair point and I should know the basics, although contracts differ from client to client you’d need legal review to interpret it properly is there a service for this? Id usually put it through qdos but that’s only ir35 aspect

I was quick to accept this one, as many will know hard enough to get any contract at the moment for some

regardless in this situation they have basically intentionally removed the paper trail although is a first in 10 or more years of freelancing and contracting

Recourse to claim payment