Who to chase for Payment.

[mikeyboy]

Not to burden you with my problems but I am almost at my wit's end and need to ask someone if I am in the wrong.

I have been having repeated payment issues since taking on this contract. There is a long chain between me and the customer. I am employed by Client A to work on a site. They have a number of contractors hired via Agency A. However, for me there is a further link in the chain Agency B to whom I send my invoices and timesheets via my Umbrella. Payment terms are 14 calendar days from invoice.

The problems lie with Agency B who are currently being "taken over" apparently. Hence their problems with payment. (Not my problem. I go to work everyday, do my work, raise my invoices on timesheets on-time and expect to be paid).

Every invoice so far has been paid at random. NEVER within the 14 days or even close to it. May's invoice was paid last week, June's invoice has still to be paid and July's Invoice is due around the 16th of this month.

I understand that with bank transfers etc delays of up to a week can occur but so far the fastest I have been paid is within 6 weeks. This is pushing me to the brink financially as I am renting accommodation here as well as paying a mortgage, flights back and forth home etc.

My Umbrella have been paying me little bits here and there despite the fact they have not received anything from Agency B. I have contacted Agency A, they have paid all invoices they have received from Agency B on-time and receive the same lies both me and my Umbrella receive when we contact Agency B.

I really like working here, the rate is good (if I ever get paid) and this could be a very longterm contract. Given that there isn't much going on in my niche back in the UK I am reluctant to leave. But I really don't know what to do.

I am really stressed because of all this. It is effecting my work and home life and I am having lots of sleepless nights. What can I do?

(sorry for droning on, but this is killing me)

[juststarting]

Are the first 2 letters of Agent B either BI... or CA.... ?

[Malingering BA]

What does the contract with the next company up the chain say about payment T&Cs? Write to them and point them out. Give them 7 days to pay all outstanding amounts and provide an undertaking they will adhere to the T&Cs in future. Also point out that if this does not happen you reserve the right to refer the matter to the small claims courts / a debt collection specialist (you choose) without further warning. This way you can demonstrate you have done your best should things end up in court.

When I was in a similar situation I also discussed it with the client. They were very understanding and realistic and had harsh words with the agent to get themselves sorted out or be fired from the contract. In fact they offered to pay me direct if things couldn't be sorted out within a fortnight. They were sorted within a day.

If all else fails, there are several "no recovery, no fee" debt collection agencies such as Daniels Silverman around.

Don't get stressed out, get your money.

[Malingering BA]

Oh yes, and if you are "opted in", the agency are under legal obligation to pay you anyway.

[If you didn't explicitly "opt out" you are "opted in"].

[mikeyboy]

Thanks for the words of advice.

One question though. Are the Umbrella responsible in any way to ensure that I receive payment on time? Surely this is one of the services I am paying my monthly fee for?

Not that I believe Umbrella Co. have been shirking their duties. In-fact they have been very good as far as I'm concerned. Paying me when Agency B has "promised" to send payment and not demanding the money back when it hasn't materialised. Basically giving me interest free loans whilst they have received nada from Agency B. Of course this just creates more stress, since if Agency B never pay I will owe the Umbrella ££££'s.

[Malingering BA]

Sorry Mikey, I know nothing about umbrellas as I've never used one myself. Have you asked the umbrella what they are doing about chasing the debt?

[VectraMan]

WHS.

I would have used this as a way of getting out of the contract with Agency B by now. I can't believe you're still working for them.

Either go direct, or with Agency A. At least then you'll start getting money for the work you're doing now rather than digging yourself in deeper.

However your employer (i.e. the umbrella), should really sort this sort of thing out for you.

[mikeyboy]

Agency A have suggested going direct if the matter is not resolved. However they have not set a precise timeframe for this and as Agency B keep telling them "oh we sent payment today, yesterday whatever" Agency A keep thinking the matter is sorted.
I have e-mailed Agency A this morning highlighting the situation and explaining that although I like the work and the client I cannot continue like this. I have no confidence in Agency B as I have been consistently lied to and I want to go direct.
Two of my colleagues are direct with Agency A and experience no issues with payment other than the odd 1 or 2 day delay here and there which is the norm I guess.

[DS23]

hmm

so what happens if this goes on for another month and then another? how long do you hang yourself out? it's your business that is on the line here. get ready to cut and run as soon as possible because the sooner you get out the smaller the possible loss.

i've been there and i hung on until the swirling gurgling agency going down the plughole noises interrupted my finger crossing seminar.

i'd tell the people you invoice in writing that unless overdue payments are not forthcoming immediately you will walk out on friday and not return. be upfront with the end client - they will not be happy but will understand that your livelihood is on the line.

start looking for another job right now.

[NotAllThere]

Strictly, you can't chase anyone for payment as no-one owes you money. Agency B owes your brolly.

If you were operating ltd, you would start dunning procedures immediately, ala www.payontime.co.uk and perhaps tell B that if they don't change their attitude PDQ, you'll consider them to be in breach, and you'll go direct with agency A/the client, and at the same time issue them with a statutory notice as a precursor to getting a winding up order. As you're not, you'll have to get the brolly to do this.

Thing is that the brolly won't lose out much if the invoices aren't paid, or are paid late. They've no incentive. Especially now you owe them money!

Agency A have suggested going direct if the matter is not resolved. However they have not set a precise timeframe for this...

Tell Agency A that you want this resolved by Friday, or you won't be in on Monday. You'll still need to get your brolly to take action against Agency B.