Agency not paying invoice

[ap2013]

Hi all,

my last client did not sign my final timesheet (3.5 days) as my contract was terminated with immediate effect and I was told by the agency not to turn up on site. So I submitted my invoice via my umbrella (CU) and filled out a timesheet for 3.5 days which I signed and sent off to the agency. They initially said the client are disputing the days (we ended on bad terms however I did work the days) so they basically can't pay me. I argued with them that the contract is between the agency and my umbrella. Umbrella re-sent the invoice asking for payment to which they have not responded. I then sent an email to the agency reminding them of The Conduct of Employment Agencies and Employment Businesses Regulations 2003, in particular Regulation 12 (of which I am opted in) and that if I do not receive a response I will need to consider legal action. I have not heard anything back since. It's been exactly a month since the initial invoice was sent asking for payment.

What are my options here? I realise because I am with an umbrella my options are limited. I do have the option of getting legal advice from Roger @ Egos (who is excellent and well recommended btw) but would prefer not to due to the costs involved.

And some advice for fellow contractors, stay clear of Square One Resources

Thanks

[DirtyDog]

Hi all,

my last client did not sign my final timesheet (3.5 days) as my contract was terminated with immediate effect and I was told by the agency not to turn up on site. So I submitted my invoice via my umbrella (CU) and filled out a timesheet for 3.5 days which I signed and sent off to the agency. They initially said the client are disputing the days (we ended on bad terms however I did work the days) so they basically can't pay me. I argued with them that the contract is between the agency and my umbrella. Umbrella re-sent the invoice asking for payment to which they have not responded. I then sent an email to the agency reminding them of The Conduct of Employment Agencies and Employment Businesses Regulations 2003, in particular Regulation 12 (of which I am opted in) and that if I do not receive a response I will need to consider legal action. I have not heard anything back since. It's been exactly a month since the initial invoice was sent asking for payment.

What are my options here? I realise because I am with an umbrella my options are limited. I do have the option of getting legal advice from Roger @ Egos (who is excellent and well recommended btw) but would prefer not to due to the costs involved.

You need to get the umbrella to chase the agency more - they are your employer, so you need to go through them.

Since you did not opt out of the agency regulations, then this is fairly straightforward, so I wouldn't bother with a solicitor (before Dominic Connor pipes in, Roger isn't a solicitor) or similar legal expert. You did the work. You can prove that you did the hours you are invoicing for. Therefore, you are entitled to be paid for those days - if the agency doesn't get paid, then that's their problem.

Get the umbrella to chase for payment, and failing that you'll have to file a small claims court notice. Read the information on payontime.co.uk

And some advice for fellow contractors, stay clear of Square One Resources

Granted it's been a while since I worked through them, and the guy I used to deal with has since left, but I've always found them to be pretty professional and prompt payers. Not had much contact with them for a while, though.

[CoolCat]

You need to get the umbrella to chase the agency more - they are your employer, so you need to go through them.

Since you did not opt out of the agency regulations, then this is fairly straightforward, so I wouldn't bother with a solicitor (before Dominic Connor pipes in, Roger isn't a solicitor) or similar legal expert. You did the work. You can prove that you did the hours you are invoicing for. Therefore, you are entitled to be paid for those days - if the agency doesn't get paid, then that's their problem.

Get the umbrella to chase for payment, and failing that you'll have to file a small claims court notice. Read the information on payontime.co.uk


Granted it's been a while since I worked through them, and the guy I used to deal with has since left, but I've always found them to be pretty professional and prompt payers. Not had much contact with them for a while, though.

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.

i worked for a big consultancy, who fell out with one of their contractors, i sat next to the commercial director as he negotiated with the umbrella... the opening negotation stance from the umbrella was "just give us 50% of amount invoiced and we will forget it"... so I dont have much faith in umbrellas pushing for payment.

[ap2013]

Thanks for the advice guys.

This is what I was afraid of. ContractorUmbrella have been very good but after speaking to my account manager he has basically said there isn't much he can do which doesn't strike me with a great deal of confidence. He also mentioned the minimum wage aspect and to be honest I will be pretty p!ssed if it does go down that route. Obviously livid with the agency and the blatant disregard for contractual obligations, not really about the money but the principal of it all.

[DirtyDog]

Thanks for the advice guys.

This is what I was afraid of. ContractorUmbrella have been very good but after speaking to my account manager he has basically said there isn't much he can do which doesn't strike me with a great deal of confidence. He also mentioned the minimum wage aspect and to be honest I will be pretty p!ssed if it does go down that route. Obviously livid with the agency and the blatant disregard for contractual obligations, not really about the money but the principal of it all.

I'd ping Lisa an email / PM and see what she advises.

[Old Greg]

Thanks for the advice guys.

This is what I was afraid of. ContractorUmbrella have been very good but after speaking to my account manager he has basically said there isn't much he can do which doesn't strike me with a great deal of confidence. He also mentioned the minimum wage aspect and to be honest I will be pretty p!ssed if it does go down that route. Obviously livid with the agency and the blatant disregard for contractual obligations, not really about the money but the principal of it all.

The truth is there isn't much he will do. He can presumably start legal action against the agency.

[tarbera]

Bad terms

so if you did a bad job, why should they pay you.? They might sue you for all your fees back.

[ap2013]

It has nothing to do with a bad job, it's not based on anything to do with performance (nor is anything in my contract).

[DirtyDog]

so if you did a bad job, why should they pay you.?

Because that's what the law says.

If you aren't opted out of the agency regulations, then you get paid for the work that you do. If the client isn't happy with the work that you did, then they have to pursue other remedies rather than not paying.

They might sue you for all your fees back.

They might - at which point you have to either pay up or defend your position. Withholding payment illegally isn't the way to resolve the dispute, though - two wrongs don't make a right and all that.

[LisaContractorUmbrella]

I'd ping Lisa an email / PM and see what she advises.

Thanks DD - OP has PM'd me so I will respond directly. This is a little more complicated than it first may seem; I have spoken to the account manager in question and we are still corresponding with the agency who are also still in discussion with the client. We will always work with agencies to ensure that our employees are fully paid for the work that they do.