Agency withholding payment

[Padz]

Hi

Never had this happen before in 7 years of contracting so would appreciate some help. I did a contract until 17th Feb 2014 and was offered an extension. I chose not to take it because of problems experienced with the agency and the umbrella company they forced me to use. So, I have emails from the agency confirming that my timesheets up to the 17th Feb have been signed off by the client and the invoice was raised by the umbrella company on the 6th March, in good time for the agency's payment schedule. I was expecting payment by the 19th March but nothing has reached my account. I raised this with both the agency and the umbrella. The umbrella has responded saying that the agency is withholding payment until some checks have been carried out with the end client since the contract has now finished. The agency only makes one payment per month so the soonest I can now expect payment is April. Can they do this? It's clear the end client was happy with my work and have given sign off for the timesheets. I don't seem to be getting any response from the agency either by email or getting someone on the telephone. Any advice would be appreciated.

[tractor]

...

Read your contract. What does it say?

Do you have signed copies of timesheets?

Are you opted out?

etc.... more info or no one can help you....

[TheFaQQer]

Ask your employer what they are doing to chase this late payment.

[riffpie]

Ask your employer what they are doing to chase this late payment.

Sounds like he's already done this:

I raised this with both the agency and the umbrella. The umbrella has responded saying that the agency is withholding payment until some checks have been carried out with the end client since the contract has now finished

I wonder if there's some genuine concern by the client about the standard of the services provided.

[TheFaQQer]

Sounds like he's already done this:

I wonder if there's some genuine concern by the client about the standard of the services provided.

This is part of the problem of using an umbrella - they may have asked once, but they don't have the same inclination to keep badgering to find out what is going on as an individual would. And since they are the ones that you need to get paid, they are the ones that need to chase the money.

I would ask the client if there is an issue, and see what they say. If they have signed the timesheet (and the timesheet has a good clause on there which indicates that they are happy with the work), then someone needs to find out what the problem is with the agency.

[kal]

Sounds like he's already done this:



I wonder if there's some genuine concern by the client about the standard of the services provided.

OP has an email from the agency confirming receipt of the signed timesheet and that the invoice has been raised, bit fishy that the last timesheet is stuck in the system after the OP refused the extension, surely if the client had issues with the standard of work then they wouldn't have offered an extension

[Padz]

payment terms in the contract are Payment Terms – Monthly PROVIDED that the Service Provider shall have complied with the terms herein below and subject to payment timescales as published on our Live site.

All documents reached them in good time for payment (by 6th March as stated on their website).

I am opted out.

The client doesn't have an issue with the work I did. They offered me an extension.

The timesheets are electronic on the agency's site. I get emails when they are approved and I have screen shots of the site to support this.

I have contacted, the agency, the umbrella and the end client so far.

The agency won't speak to me on the telephone regarding this matter, my emails have been ignored. All I have is an email from the umbrella company stating that the agency are 'carrying out checks'. Why they are only making checks now when they have had the invoice since the 6th March is beyond me.

Thanks for the replies so far

[riffpie]

OP has an email from the agency confirming receipt of the signed timesheet and that the invoice has been raised, bit fishy that the last timesheet is stuck in the system after the OP refused the extension, surely if the client had issues with the standard of work then they wouldn't have offered an extension

Good point. Silly me. I could argue that they didn't bother looking at his work until he refused the extension, but that's a level of nit-pickery I'm not going to stoop to.

[northernladuk]

After 30 days you can start claiming interest..

You have to show that you are a small business (with fewer than 50 workers), and that the debt is due for more than 30 days--if your contract states that payment of your invoice is due after 7 days, then you must of course wait 37 days before claiming that it is overdue.

Satisfy these conditions, and you're entitled to interest at 8% over the 'official dealing rate' (find this on the Bank of England website). If that rate is currently 5.%, the interest rate you are entitled to is 13.%. You can calculate the interest due using the Late Payment Calculator on this site.

Send them a letter pointing out it is now a commercial debt and you will be claiming interest. They will probably stump up at that point..

Also your Opt in/out status will also count here if you know what it is.

[Old Greg]

After 30 days you can start claiming interest..



Send them a letter pointing out it is now a commercial debt and you will be claiming interest. They will probably stump up at that point..

Also your Opt in/out status will also count here if you know what it is.

Brolly.