Being paid after 30 days - is that normal?

[nhussain03]

Because you are not direct with the customer, there is always an extra step in the chain. 30 days is not to bad I have had 60 days via ltd before, they did honor and pay on time.

[eek]

Yes, especially on a direct gig. If you're direct as a limited company you'll go into the client's normal monthly supplier run, so, for example, you'd get August's work paid second week in October. That's how businesses rather than employees work. Similarly if you're a permie, you'd get paid at the end of the month for the whole month's work. Big agencies often "invoice factor" for you as part of your gig, simply because you're working somewhere like a large bank who they know is good for the money - as soon as you've got a signed timesheet, they know that it's money they can get from the client so they'll get yours to you weekly.

Small agencies (and consultancies) may factor as well - we are all set up to do it because our factoring firm does all the work and pays the contractor and us the following week.

[jayn200]

Yes, especially on a direct gig. If you're direct as a limited company you'll go into the client's normal monthly supplier run, so, for example, you'd get August's work paid second week in October. That's how businesses rather than employees work. Similarly if you're a permie, you'd get paid at the end of the month for the whole month's work. Big agencies often "invoice factor" for you as part of your gig, simply because you're working somewhere like a large bank who they know is good for the money - as soon as you've got a signed timesheet, they know that it's money they can get from the client so they'll get yours to you weekly.

Businesses pay according to payment terms. They're not always able to pay invoices 6 weeks after invoice date. They will usually try to dictate payment terms as much as they can but not every company is large or savvy enough to be able to dictate their payment terms. I understand you may have only worked for large corps that are regularly able to boss around their suppliers and dictate their payment terms but that's not universally applicable.

[LondonManc]

Hi,

The umbrella company I have just joined have notified me that I will be paid 30 days after I have done a week of work. This is because of their agreement set with the agency, that payslips and payments are made after 30 days.

Is this normal? I feel a bit nervous about getting my payslip and payment 30 days after, and having to keep track of it all, especially as I'm going back to back on short contracts.

Thanks!

Yes, especially on a direct gig. If you're direct as a limited company you'll go into the client's normal monthly supplier run, so, for example, you'd get August's work paid second week in October. That's how businesses rather than employees work. Similarly if you're a permie, you'd get paid at the end of the month for the whole month's work. Big agencies often "invoice factor" for you as part of your gig, simply because you're working somewhere like a large bank who they know is good for the money - as soon as you've got a signed timesheet, they know that it's money they can get from the client so they'll get yours to you weekly.

[northernladuk]

Nervous, why? You're just working 30 days in hand the same as when you start your first job or switch employers. You just fall in line with their payment terms even as an employee.

Are you sure about that?

[northernladuk]

Hi, thanks for replying. The Umbrella is Pay Stream.

I think I'm going to go back and check with the agency as Pay Stream are saying it is because of the agency's terms with them, and if the agency is willing to change the terms, then they are happy to pay sooner.

Sadly agents are rarely willing to change their terms. To pay any sooner means they are paying you without getting their money from the client so shouldering the risk. Something many won't do... Plus they may have a monthly payroll process they are unwilling to change.

Shouldn't be an issue with 30 days, you'll get paid an extra month after you've left which is always nice.

[cat89]

Nervous, why? You're just working 30 days in hand the same as when you start your first job or switch employers. You just fall in line with their payment terms even as an employee.

Sometimes you work on contract for 30 days then get paid upto 30 days after that and so on. That can mean you dont get paid for near enough the first 60 days then every subsequent payment should be 30 days after.

Some agencies try and spin this saying when you finish the contract and move on, you will still get a payment 30 days after you finished.

I think it's because I'm on short contracts (less than 4 weeks at times) and I don't want to move onto something else and be worrying whether I've been paid correctly on the previous contract and having to check/chase it etc. It just feels quite inefficient practically for me.

As I'm not tied down to this umbrella yet, I'm wondering whether it is an umbrella issue or an agency issue. If it is an umbrella issue, I still have the option to move to another umbrella who can pay me a week after rather than a month after.

[cat89]

Are you sure the umbrella is not a scheme one. Everything is above board and no loans involved etc? It's FCSA registered?

If all that is sorted then yes, it's possible to be 30 days in arrears, particulary with an agent in there as well. No one is willing to shoulder the risk and factor the money so you'll just have to wait as it passes down the chain.

Something thst should have been check at engagement but the times they quote aren't out of th realms of possibility..

There is no 'normal' by the way. There are many different options so it's down to diligence to make sure you investigate and pick the ones thst suit you

Hi, thanks for replying. The Umbrella is Pay Stream.

I think I'm going to go back and check with the agency as Pay Stream are saying it is because of the agency's terms with them, and if the agency is willing to change the terms, then they are happy to pay sooner.

[TheDogsNads]

Hi,

The umbrella company I have just joined have notified me that I will be paid 30 days after I have done a week of work. This is because of their agreement set with the agency, that payslips and payments are made after 30 days.

Is this normal? I feel a bit nervous about getting my payslip and payment 30 days after, and having to keep track of it all, especially as I'm going back to back on short contracts.

Thanks!

Nervous, why? You're just working 30 days in hand the same as when you start your first job or switch employers. You just fall in line with their payment terms even as an employee.

Sometimes you work on contract for 30 days then get paid upto 30 days after that and so on. That can mean you dont get paid for near enough the first 60 days then every subsequent payment should be 30 days after.

Some agencies try and spin this saying when you finish the contract and move on, you will still get a payment 30 days after you finished.

[northernladuk]

Are you sure the umbrella is not a scheme one. Everything is above board and no loans involved etc? It's FCSA registered?

If all that is sorted then yes, it's possible to be 30 days in arrears, particulary with an agent in there as well. No one is willing to shoulder the risk and factor the money so you'll just have to wait as it passes down the chain.

Something thst should have been check at engagement but the times they quote aren't out of th realms of possibility..

There is no 'normal' by the way. There are many different options so it's down to diligence to make sure you investigate and pick the ones thst suit you

[cat89]

Hi,

The umbrella company I have just joined have notified me that I will be paid 30 days after I have done a week of work. This is because of their agreement set with the agency, that payslips and payments are made after 30 days.

Is this normal? I feel a bit nervous about getting my payslip and payment 30 days after, and having to keep track of it all, especially as I'm going back to back on short contracts.

Thanks!