Agent changing payment terms at renewal

[ppeaster]

Hi,

I have been contracting through an agency at the same client for the last four years. Agent has been fine, the only time I hear from them is at contract renewal but that doesn't bother me. Payment is weekly, one week in arrears. I recently agreed an internal move to a new team which comes with a small rate rise. The agency has told me that as part of this renewal they are imposing new payment terms - now three weeks in arrears. So when I start the new role, I will be unpaid until week 3, then when I leave the client they will need to pay me for a further 2 weeks.

Whilst I don't like it, I recognise the agent is entitled to change T&Cs and I am free to leave if I don't like them. As I like this client I feel I have to accept. However, my old contract explicitly states 'payment is one week in arrears'. The new contract simply includes a screenshot of an Excel spreadsheet entitled "Payment Terms", showing a basic timeline, from which you can work out when you are paid. I have concerns that from a legal standpoint this is not clear and, in the worst case, could leave me at risk if they fail to pay me.

Does anyone have experience of this type of thing? I think I need them to give me a more explicit contract but appreciate any thoguhts.

[TheDude]

Hi,

I have been contracting through an agency at the same client for the last four years. Agent has been fine, the only time I hear from them is at contract renewal but that doesn't bother me. Payment is weekly, one week in arrears. I recently agreed an internal move to a new team which comes with a small rate rise. The agency has told me that as part of this renewal they are imposing new payment terms - now three weeks in arrears. So when I start the new role, I will be unpaid until week 3, then when I leave the client they will need to pay me for a further 2 weeks.

Whilst I don't like it, I recognise the agent is entitled to change T&Cs and I am free to leave if I don't like them. As I like this client I feel I have to accept. However, my old contract explicitly states 'payment is one week in arrears'. The new contract simply includes a screenshot of an Excel spreadsheet entitled "Payment Terms", showing a basic timeline, from which you can work out when you are paid. I have concerns that from a legal standpoint this is not clear and, in the worst case, could leave me at risk if they fail to pay me.

Does anyone have experience of this type of thing? I think I need them to give me a more explicit contract but appreciate any thoguhts.

I wouldn't worry about it too much.

Complain and you might find you are not being paid for another 12 months or more in this market.

[WTFH]

I'd not accept a contract that had a screenshot in it. Rather than them trying to explain how it will work, ask them to put it in writing in the contract.

[ladymuck]

Depending on how well you get on with the client (as you've been there a while, I guess it's good), you could try to find out what payment terms your client has. I bet they are not paying a week in arrears but are on at least 30 day terms. Also try to find out if the client has extended their payment terms with the agency.

Then invest £25 or so and do a credit check on the agency. Extending payment terms could be a sign of financial distress and a lack of ability to cover the gap between paying contractors and when the money comes in. What you're looking for is a change in overall position rather than getting too hung up on the amount of cash in the bank (which is often surprisingly low for many agencies).

I don't think it's unreasonable to ask for what WTFH has suggested. Screenshots shouldn't be part of a contract. If there is a defined payment cycle, it should be explicitly described.

[courtg9000]

Depending on how well you get on with the client (as you've been there a while, I guess it's good), you could try to find out what payment terms your client has. I bet they are not paying a week in arrears but are on at least 30 day terms. Also try to find out if the client has extended their payment terms with the agency.

Then invest £25 or so and do a credit check on the agency. Extending payment terms could be a sign of financial distress and a lack of ability to cover the gap between paying contractors and when the money comes in. What you're looking for is a change in overall position rather than getting too hung up on the amount of cash in the bank (which is often surprisingly low for many agencies).

I don't think it's unreasonable to ask for what WTFH has suggested. Screenshots shouldn't be part of a contract. If there is a defined payment cycle, it should be explicitly described.

This is good advice, but be careful with credit checks and recruitment agencies, because of the nature of the business especially medium to smaller agencies may not have a fantastic credit rating and some of the biggest agencies also may not have the credit ratings you might expect them to have or like them to have.

[ladymuck]

This is good advice, but be careful with credit checks and recruitment agencies, because of the nature of the business especially medium to smaller agencies may not have a fantastic credit rating and some of the biggest agencies also may not have the credit ratings you might expect them to have or like them to have.

I agree, that's why I say look for changes. Some credit reports give several years worth of detail and you can get a feeling for whether things are getting worse, better or staying the same

[northernladuk]

Are you inside IR35, outside IR35 or no PSC's? Agent is paying your LTD or paying your umbrella?

I'd definitely be pulling them up on the screenshot thing. Have it in proper writing that's clear and you understand. They can send you the payment sheet as an addendum but the clause needs to be worded clearly and in detail for me. Shouldn't be a problem going back to them and asking them to amend it. They'll be eager to get you to sign so shouldn't make an issue out of this.

[Bluenose]

Hi,

Does anyone have experience of this type of thing? I think I need them to give me a more explicit contract but appreciate any thoguhts.

Sometimes the changes are needed because payroll/bank services change. Sometimes they cut staff which extends payment periods.

I actually think the new terms you have been offered are good but yes, I would agree with the above that a screenshot inside a contract is not acceptable.