Can My Agency Refuse To Pay Me?

[mlintell]

I have just renewed my contract. The contract has been signed by all parties concerned. However due to some internal politics the client company is unable to raise a purchase order at the present time so the agency will be unable to bill them. Since my contract is with the agency do they have a legal obligation to pay me even if they cannot get paid. Currently they are saying that if they don't get paid, I won't either.

I thought being a buffer of protection against this sort of thing was one of the risks the agencies take on. Any advice anyone? Right now I am thinking of walking offsite tomorrow.

[Cowboy Bob]

Did you sign an opt-out of the agency regulations? If you did, then yes they can withold the money, if you didn't then they can't.

[mlintell]

As far as I can recall I have never signed an opt out clause unless it was in the original contract almost 3 years ago. If I haven't signed one then can I bring any pressure to bear on them?

[Cowboy Bob]

As far as I can recall I have never signed an opt out clause unless it was in the original contract almost 3 years ago. If I haven't signed one then can I bring any pressure to bear on them?

Yes, if you are opted in then they have to pay you if you have done the work, regardless of whether they have been paid by the end client. If they still refuse, you need to get legal on them.

[Bluebird]

are you still on site ?

if so tell your boss if he won't sign time sheets you'll WALK and do so.

Invoice the agency for work completed, giving a deadline of x days to make payment - should be in the T&C of your contract

If no payment forthcoming, write to agency saying you take them to small claims court [ if under £5 ].

Then use moneyclaim online to start ball rolling - my guess is that it won't go this far

[Cowboy Bob]

I think you mean under £5000.

[Bluebird]

yep sorry forgot the "k"

[tim123]

Did you sign an opt-out of the agency regulations? If you did, then yes they can withold the money,

Only if the is a contractual clause saying so.

Assuming you read the contract you should never ever agree to such a clause, it has no place in a reasonably negotiated contract.

tim

[mlintell]

It would have been so much fun to take them to small claims court :-)

However screaming loudly and threatening to walk offsite seems to have done the trick. There is now a purchase order in place and whats more the length of the contract has been extended.

So for now I am a happy bunny! However I have made a mental note to find out if I am opt-in or opt-out. Guess I will be pouring over the fine print in the contract.

Many thanks to all who replied :-)

[Bluebird]

glad we could be of service

the invoice is in the post