Reply to: Agency disputing payment of invoice

[Safe Collections]

Out of interest how many cases have you seen that came down to opt in/out problems and from them how many accepted the status and it got resolved?

We have had two cases this year that purely related to the opt in/out status, both were resolved successfully without litigation. In both cases the agency had, in our view, attempted to shift the loss they faced from dealing with insolvent clients on to the contractors for no other reason than they felt they could.

However the legislation is explicit and a majority of legitimate recruitment companies know that if push comes to shove they would struggle to defend a legal claim based on statute, irrespective of what the contract may state.

The problems arise when the status isn't clear from the outset, the relationship breaks down in some way or the agent (or end client) is dishonest. Simply staying opted in does not provide a guarantee of payment in these circumstances.

From a credit risk perspective remaining opted in is preferable, but it needs to be coupled with the necessary due diligence and adherence to any agreed contractual terms.

[BolshieBastard]

No - contract doesn't trump statute. So if you aren't opted out correctly, then they have to pay you regardless of whether they get paid or not.

As long as you can show that you did the work, they have to pay up - which is one big reason why the agencies hate those that aren't bullied into opting out.



I would expect so - the website talks of "Up to £10000 compensation for failed payments" so I'd get on the phone quickly if you're a member.

Must be why Rullion Manchester wont put you forward for IT jobs (hate people who arent bullied) unless you agree to 'opt out.'

[northernladuk]

This +1. Check your contract and the status of your opt in/out carefully and proceed on that basis.

Out of interest how many cases have you seen that came down to opt in/out problems and from them how many accepted the status and it got resolved?

[Safe Collections]

No - contract doesn't trump statute. So if you aren't opted out correctly, then they have to pay you regardless of whether they get paid or not.

As long as you can show that you did the work, they have to pay up - which is one big reason why the agencies hate those that aren't bullied into opting out.

This +1. Check your contract and the status of your opt in/out carefully and proceed on that basis.

[teapot418]

Not sure about that - it covers £10K for client going bust if you're direct with client, and agency going bust if you're through an agency.

Maybe £1000 for failing to honour contract, depending what the contract says, which I guess is key here. Probably worth giving them a ring if you might be covered.

https://www.ipse.co.uk/about-us/busi...ption-services

Hmmm - reading the details of the policy, it would appear not.

WTPS.

[MrMarkyMark]

In general it's not a bad idea but it's the client that's gone bump not the agency.

Doh! reminder to read post properly next time!!

Although, I would extend my credit check to the client if they were of a smaller size.
Even this is no guarantee, in any case, look at Enron!

[northernladuk]

Well worth credit checking, before you agree to enter into contract with an agency, iMO.

In general it's not a bad idea but it's the client that's gone bump not the agency.

[TheFaQQer]

I would expect so - the website talks of "Up to £10000 compensation for failed payments" so I'd get on the phone quickly if you're a member.

Hmmm - reading the details of the policy, it would appear not.

I have asked the question, though.

[TheFaQQer]

Depends if there is a clause saying the agency would only pay you if they have been paid by the client wouldn't it? The opt in/out status would only say the agent has to pay you regardless of any timesheets but the client paying the agent clause would trump that?

No - contract doesn't trump statute. So if you aren't opted out correctly, then they have to pay you regardless of whether they get paid or not.

As long as you can show that you did the work, they have to pay up - which is one big reason why the agencies hate those that aren't bullied into opting out.

Your IPSE+ membership should cover you shouldn't it?

I would expect so - the website talks of "Up to £10000 compensation for failed payments" so I'd get on the phone quickly if you're a member.

[MrMarkyMark]

A debt collection agency would know the right buttons to press to make them see sense on this.

Yep, I would engage one straight away.
Opt, Opt out may have relevance, although, in reality, this is extremely unclear.

Recently we have had posts saying there is no risk to contracting, "None payment never happened to me" etc. etc.
Well worth credit checking, before you agree to enter into contract with an agency, iMO.

[Contreras]

Depends if there is a clause saying the agency would only pay you if they have been paid by the client wouldn't it? The opt in/out status would only say the agent has to pay you regardless of any timesheets but the client paying the agent clause would trump that?

The "paid when paid" clause is only valid for opted-out status (if you trust that the legislation applies at all).

Without a timesheet the agency must seek other evidence, which it seems they have already so there is no case to answer. A debt collection agency would know the right buttons to press to make them see sense on this.

However, was an opt-out signed, or not?

[BlasterBates]

A good idea to take legal advice, unless there is a clause in the contract that explicitly states that payment is contingent on payment from the client, I would say the agent needs to pay.

[WTFH]

Have you searched for the agency on here to see if anyone else has had issues with them?


Make sure you have everything in writing from the agency and if possible from the end client as well, then consider getting legal advice.

[teapot418]

Your IPSE+ membership should cover you shouldn't it?

Not sure about that - it covers £10K for client going bust if you're direct with client, and agency going bust if you're through an agency.

Maybe £1000 for failing to honour contract, depending what the contract says, which I guess is key here. Probably worth giving them a ring if you might be covered.

https://www.ipse.co.uk/about-us/busi...ption-services

[northernladuk]

Just a question, there was no indication your client was going to go belly up?? Nothing at all?