Payment Headache

**eek** · 14 December 2010, 10:20

Originally posted by NorthWestPerm2Contr View Post

Is it me or are agencies bent upon not paying contractors on time? I had a nightmare with agency x constantly paying me late and having the worst possible timesheet system imaginable.

Now agency y has not paid me (payment terms are awful - 3 weeks after end of month) and even then they have still not paid me. I can't get through to their team and am really pissed off. Can't concentrate on work or anything.

I am always rash in these circumstances but am considering not turning up tomorrow if they don't sort it out today and telling clientco that agency refusing to pay.

What are your views?

Warn you client that you have not been paid and as such may have to stop work in the near future.

Issue you agent with a letter requesting payment within 7 days with suitable warning about what you will do afterwards. I usually threaten a Bankruptcy petition as the consequences are always far more awkward to deal with.

Mind you if you can't speak to your agent are they still around?

**norrahe** · 14 December 2010, 10:28

Name and Shame please

**Old Greg** · 14 December 2010, 10:43

Originally posted by NorthWestPerm2Contr View Post

Is it me or are agencies bent upon not paying contractors on time? I had a nightmare with agency x constantly paying me late and having the worst possible timesheet system imaginable.

Now agency y has not paid me (payment terms are awful - 3 weeks after end of month) and even then they have still not paid me. I can't get through to their team and am really pissed off. Can't concentrate on work or anything.

I am always rash in these circumstances but am considering not turning up tomorrow if they don't sort it out today and telling clientco that agency refusing to pay.

What are your views?

Not turning up seems a bit much until you've given end-client a chance to sort it out, and you really should do this now. IMHO of course.

**mavster07** · 14 December 2010, 11:47

I would definitely notify your client and advise them that services would have to be withdrawn and alternate contract work obtained.

I would simply request to the agent that you are finding the agency unreliable and you would like to:
a) Terminate your contract with the agency effective immediately due to breach of contract (which it is);
b) Engage either directly or with an alternate agency on the PSL;
c) Have the current client pay your invoice directly.

If you do have to stay with the current agency, I would issue a contract amendment and ask them to sign it, which is that all invoices are paid within 14 days of receipt of a signed timesheet (or whatever the system is there). If the timesheet system really sucks, advise them that you are switching to manual timesheets whereby you will ask the client to sign at the end of the month and they will be sent a scanned copy along with your invoice. Make sure your invoice clearly states the payment terms of XX days too (in case the contract is mute on this area).

At the end of the day you are a supplier to the end client and under the debt recovery legislation, if the agency doesn't pay, you are within your legal rights to serve the invoice on the end client who are the recipient of services (this happens all the time in non-IT related commercials). I would tell the agency that you plan to do this and to seek to terminate the contract due to frustration and/or breach and cut them out of the loop. I had an agency do exactly what you're having happen to you and i told them straight out 'no pay, no work, contract ended' and I did exactly that, told the client, got a new agency off the PSL and setup a new contract.

**NorthWestPerm2Contr** · 14 December 2010, 16:47

Ok...

that was wierd

Payment came in now. They had not given me the remittance which is why I assumed no payment.

However.... They overpaid me by £1000!

what should I do?!

Has that happened to anybody else?

**mavster07** · 14 December 2010, 17:07

obviously you need to give the money back !!!!!!

**NorthWestPerm2Contr** · 14 December 2010, 17:32

obviously you need to give the money back !!!!!!

easier said than done!

**SueEllen** · 14 December 2010, 20:23

1. Tell them that they over paid you - try to do it verbally then if not email/fax the invoicing department
2. If you can't then you have to issue an invoice next month with a credit on it so they pay you less.
3. If that doesn't work keep the money in your business savings account until they ask for it back which they will do but it could take them over a year.

**pmeswani** · 14 December 2010, 21:14

Originally posted by NorthWestPerm2Contr View Post

easier said than done!

Send them an email informing them that they have overpaid. When you raise your next invoice, invoice them and send them a statement with it showing previous invoice + current invoice and amount received and amount outstanding. That way, they know how much they need to pay.

Payment Headache