Reply to: Agency changing payment terms mid-contract

[LondonManc]

IMO:
pros
-you can take solace in "sticking it up to the man"
-you'll probably get paid pretty quick
-they'll probably never pay late again

cons
-what if they don't pay you the next day, or the day after, or the day after? How long are you willing to hold out losing income for the sake of making a point? (weeks?)
-you look pretty unprofessional - most companies will not drop their service when a payment is 1 day late, there are legal processes to chasing late payments which should be followed but they shouldn't result in service ending without a certain level of warning (it's not illegal but it's pretty unprofessional)

again, these are IMO

I don't disagree; the biggest con is that you're jeopardising a potential long term business relationship. Odds are that they'll be straight on to the agency to find your replacement.

[pr1]

Or sticking it to the man, depending upon your point of view.

IMO:
pros
-you can take solace in "sticking it up to the man"
-you'll probably get paid pretty quick
-they'll probably never pay late again

cons
-what if they don't pay you the next day, or the day after, or the day after? How long are you willing to hold out losing income for the sake of making a point? (weeks?)
-you look pretty unprofessional - most companies will not drop their service when a payment is 1 day late, there are legal processes to chasing late payments which should be followed but they shouldn't result in service ending without a certain level of warning (it's not illegal but it's pretty unprofessional)

again, these are IMO

[LondonManc]

cutting off your nose to spite your face much?

Or sticking it to the man, depending upon your point of view.

[MrMarkyMark]

Slightly different in my case, I've agreed to two weekly invoicing, and usually get paid the Friday after the invoice goes in. But it's been missed once, and I wasn't at work the next Monday. I checked everything to make sure I wasn't in breach of contract, I warned everyone that I wouldn't be at work (told them I didn't have the funds to get there) and the site was closed for a day. I don't know how they explained it to the client but it has to be black and white for me.

Sock it to 'em

[pr1]

Slightly different in my case, I've agreed to two weekly invoicing, and usually get paid the Friday after the invoice goes in. But it's been missed once, and I wasn't at work the next Monday. I checked everything to make sure I wasn't in breach of contract, I warned everyone that I wouldn't be at work (told them I didn't have the funds to get there) and the site was closed for a day. I don't know how they explained it to the client but it has to be black and white for me.

cutting off your nose to spite your face much?

[northernladuk]

Slightly different in my case, I've agreed to two weekly invoicing, and usually get paid the Friday after the invoice goes in. But it's been missed once, and I wasn't at work the next Monday. I checked everything to make sure I wasn't in breach of contract, I warned everyone that I wouldn't be at work (told them I didn't have the funds to get there) and the site was closed for a day. I don't know how they explained it to the client but it has to be black and white for me.

You've got to be kidding right?

[Lost It]

Slightly different in my case, I've agreed to two weekly invoicing, and usually get paid the Friday after the invoice goes in. But it's been missed once, and I wasn't at work the next Monday. I checked everything to make sure I wasn't in breach of contract, I warned everyone that I wouldn't be at work (told them I didn't have the funds to get there) and the site was closed for a day. I don't know how they explained it to the client but it has to be black and white for me.

[LondonManc]

Well, they've phoned me back today, and said it was all a big misunderstanding. The recruitment consultant said that he'd been told it was changing to monthly by the directors, and he just passed on the information.
I explained that they would be in breach of contract (I double checked my contract and it clearly states weekly), and he said, "oh if you can't live with monthly, then we'll make an exception for you"...I replied by saying, "you have a contractual obligation to pay me weekly, so it's not "making an exception"".
He also said there are cash flow issues with the start up and they requested to change it to monthly, because they are stretched financially.
Just as I suspected.

Anyway, long story short, it will remain weekly.

Thanks for the update; at least getting paid weekly will leave you exposed to two weeks at most.

[SueEllen]

Well, they've phoned me back today, and said it was all a big misunderstanding. The recruitment consultant said that he'd been told it was changing to monthly by the directors, and he just passed on the information.
I explained that they would be in breach of contract (I double checked my contract and it clearly states weekly), and he said, "oh if you can't live with monthly, then we'll make an exception for you"...I replied by saying, "you have a contractual obligation to pay me weekly, so it's not "making an exception"".
He also said there are cash flow issues with the start up and they requested to change it to monthly, because they are stretched financially.
Just as I suspected.

Anyway, long story short, it will remain weekly.

They probably read this thread and worked out who you maybe.

It does happen.

[ECommerceConsultant]

Well, they've phoned me back today, and said it was all a big misunderstanding. The recruitment consultant said that he'd been told it was changing to monthly by the directors, and he just passed on the information.
I explained that they would be in breach of contract (I double checked my contract and it clearly states weekly), and he said, "oh if you can't live with monthly, then we'll make an exception for you"...I replied by saying, "you have a contractual obligation to pay me weekly, so it's not "making an exception"".
He also said there are cash flow issues with the start up and they requested to change it to monthly, because they are stretched financially.
Just as I suspected.

Anyway, long story short, it will remain weekly.

[SueEllen]

OK, thank you all for providing tips on how to deal with it. It's very appreciated.

Oh and when I said walk away I mean it.

I've downed tools on two contracts due to payment term issues.

One we sorted the issue out, while the other I walked away from.

Funnily enough due to walking away from the second contract I was then free to get a contract that lead me to get in demand skills.

[ECommerceConsultant]

OK, thank you all for providing tips on how to deal with it. It's very appreciated.

[MrMarkyMark]

The main thing everyone has forgot to add is the OP needs to invoice the agency as per his contract to show the new terms are not accepted at the same time as doing the investigations.

Then if the agency makes a fuss about the invoice or doesn't pay on time, then you need to walk out.

This +1

[SueEllen]

The main thing everyone has forgot to add is the OP needs to invoice the agency as per his contract to show the new terms are not accepted at the same time as doing the investigations.

Then if the agency makes a fuss about the invoice or doesn't pay on time, then you need to walk out.

[LondonManc]

Agreed, and it was my concern from the start.
No one from the agency is picking up their phone, or replying to emails / voicemails.

Things to do:
Credit check via google search
If that raises concerns, express those concerns to the agency; their financial problems shouldn't be yours (and vice versa to be fair).
Once you're not been paid, look at going offsite - raise this to the guy running the show that you haven't been paid and make it clear that you aren't prepared to work for free.