Agency not paying invoice

[Wanderer]

Hmmm. Hypothetically speaking, what are the contractor's options in the event that there is a legitimate debt being unpaid and and an umbrella company which refuses to take action against the agency?

[northernladuk]

Hmmm. Hypothetically speaking, what are the contractor's options in the event that there is a legitimate debt being unpaid and and an umbrella company which refuses to take action against the agency?

I haven't read it all but I think this article covers that situation.

Contractors' Questions: Is my umbrella in breach of contract? :: Contractor UK

[Contreras]

this is one of the biggest problems with using an umbrella, you cannot fight if they dont want to.

many umbrellas contract their contractors for only minimum wage per hour, and all other payments are "bonus" if and only if the end client and agency pays their invoice. so even if you took the umbrella to tribunal or court you would likely only get minimum wages per hour. since contract between umbrella and agency, and between agency and end client, is little to do with you (in law) you cannot really push those fights.

Despite the contractual terms it would still make sense to initiate a claim through an employment tribunal IMHO.

It costs nothing and is very straight forward to do online without needing a solicitor. The umbrella must respond within a certain period or it goes to default judgement. You can still be negotiating during this period and right up to the hearing date, but the umbrella have more incentive to get it sorted - not least for the time and effort involved of attending a tribunal, but there's also no guarantee a Judge would uphold the contract totally in their favour.

[LisaContractorUmbrella]

Hmmm. Hypothetically speaking, what are the contractor's options in the event that there is a legitimate debt being unpaid and and an umbrella company which refuses to take action against the agency?

The debt is to the umbrella company who in turn have a debt to the contractor - if there is legitimate liability then the umbrella company should pursue the agency

[DirtyDog]

Despite the contractual terms it would still make sense to initiate a claim through an employment tribunal IMHO.

It costs nothing and is very straight forward to do online without needing a solicitor.

It costs £160 up front, and then £230 due at the hearing.

[Contreras]

It costs £160 up front, and then £230 due at the hearing.

Thanks for the correction. That's a recent development, since August, and not an unreasonable one IMHO. But if it helps to bring about a rapid resolution of the dispute then it's money well spent.

[Boney M]

Thanks for the correction. That's a recent development, since August, and not an unreasonable one IMHO. But if it helps to bring about a rapid resolution of the dispute then it's money well spent.

Cheaper to do it via MCOL than a tribunal now