Reply to: Agency Risk

[Menelaus]

Got paid for March work today. So thats a start. I sent the agency an email explaining the Late Payment of Commercial Debts Act 1998, and stating my intention to exercise my rights to compensation. But he just says that he only pays me when he gets paid. I cant seem to get it through that there is no contingent liability here. Its irrelevant when he gets paid, he has a legal obligation to pay my invoice in 30days. Anyway I said this in another email and await his response.

I'm confident that this guy isnt bankrupt; just cr@p.

Start charging him interest and put him on notice that on day 31 beyond the date of your most recent invoice you're walking off site if he hasn't paid you.

When I was but a baby analyst the risk bloke I worked with had a sign above his desk which read "Credit is a privilege, not a right".

[kryten22uk]

Got paid for March work today. So thats a start. I sent the agency an email explaining the Late Payment of Commercial Debts Act 1998, and stating my intention to exercise my rights to compensation. But he just says that he only pays me when he gets paid. I cant seem to get it through that there is no contingent liability here. Its irrelevant when he gets paid, he has a legal obligation to pay my invoice in 30days. Anyway I said this in another email and await his response.

I'm confident that this guy isnt bankrupt; just cr@p.

[NotAllThere]

It's not hunkydory for them when you walk because you haven't been paid, and you leave them in the lurch.

Anyway - do the proper dunning process as detailed on www.payontime.co.uk Then hit the agency with a statutory notice to pay.

[kryten22uk]

I did look up on CH but all seems fine.

I spoke to client, and their standpoint is that they are provided with a service (ie I turned up) and they're paying for it; all hunky-dory from their point of view.

[s2budd]

This is a problem. Look the agency up on Companies House and see if there accounts are late. Pay for a credit check against the agency and speak with your end client about going direct.

[TykeMerc]

The contract states that the agency agrees to pay within 30 days of invoice date. Not sure to what extent a breach of contract invalidates the other clauses though.

I have just received an email from the agent who says the "for some reason" the payment didnt go through, and he's only just noticed. He says he's out of the country at moment and will redo the payment on his return; albeit he didnt give a return date.

I've drafted an email stating my intention to apply the "The Late Payment of Commercial Debts (Interest) Act 1998" to this and any future late payments. The late payment is over £20k, so 8%pa interest for a month is not insignificant. This will destroy our faux-friendly relationship, but there's no way I'll renew with them ever again anyway.

That's a massive red flag, in your situation I would start immediate legals to recover the money that the Agency owes you, I would also talk the client into going direct as there have been clear material breaches of the contract by the Agency.

I would advise the client to NOT pay any invoices from the Agency too.

I'm afraid you're out of real options as it's clear that the Agency is in financial problems and you have to look after number one in these circumstances to limit your financial loss.

[thelace]

The agent should pay you as per contract, doesn't matter a fig to you whether they've been paid by the client.

Talk to the client with a view to contracting you direct, set up a contract with them if they'll allow you. The agency's contract is Null and Void if they have not kept up the payment terms stipulated in the contract.

Once you have a contract with the client direct, sever all links with the agency and immediately employ a debt collection agency to recover all monies owed including interest.

It sounds like the agency is teetering on the brink of insolvency and you want to be first in the queue to recover whatever you can from them.

Do Not carry on working for the agency, it's the equivalent of standing in the street burning £20 notes!

[kryten22uk]

Isn't one of the benefits of being "opted-in" that the agency are supposed to pay you regardless of tehm getting paid by Client Co?

The date at which the agency gets paid is irrelevant. I have a business contract with the agent whereby they agree to pay me for consultancy. There is no contingent link. They may want to operate in a "you get paid when we get paid" style in order to minimise cashflow issues, but that’s not my problem. I'm fairly sure NatWest wouldn’t like it if I turned round and said I'll pay the mortgage if/when I get paid!

[Menelaus]

Factoring / invoice discounting, perhaps?

Hey, if it's good enough for the agency...

[kryten22uk]

As you have said late payment is a breach of contract. Use this to sever all links with the agency and go direct with the client. How's that?

I get the feeling its not as simple as that. Not least because the agency has a similar clause in the end client contract, which stops the end client using me direct or indirect for 6mths.

[NickNick]

Isn't one of the benefits of being "opted-in" that the agency are supposed to pay you regardless of tehm getting paid by Client Co?

[TheRefactornator]

As you have said late payment is a breach of contract. Use this to sever all links with the agency and go direct with the client. How's that?

[SlimRick]

Terms and conditions are a fundamental part of a legally binding contract and any broken terms can lead to breach of contract.

They have breached terms and conditions of the contract, and as such would have one hell of a time imposing the restriction clause on you.

In this case, I very much doubt whether the agency would risk the expense of a court case when it can be so easily be proved that they have breached the terms of the contract.

[kryten22uk]

The contract states that the agency agrees to pay within 30 days of invoice date. Not sure to what extent a breach of contract invalidates the other clauses though.

I have just received an email from the agent who says the "for some reason" the payment didnt go through, and he's only just noticed. He says he's out of the country at moment and will redo the payment on his return; albeit he didnt give a return date.

I've drafted an email stating my intention to apply the "The Late Payment of Commercial Debts (Interest) Act 1998" to this and any future late payments. The late payment is over £20k, so 8%pa interest for a month is not insignificant. This will destroy our faux-friendly relationship, but there's no way I'll renew with them ever again anyway.

[SlimRick]

If they have breached contract - then it is no longer valid. Read your payment terms carefully, or copy that section on here so we can have a read.