Agency Tosspot Payment process

[Not So Wise]

Before I say anything I will warn you, I am cranky today, not enough sleep and just had a long convo with another contractor getting shafted by his agency because of his stupidity/naivety

First off: Read the bloody contract. It's a legal contractual document between two or more parties, not a "Congratulation you got the job!!" card

Does it say something like "Payment shall only be made upon receipt of payment from client"? If not tell agency to f*off, them receiving payment is not your problem, they are responsible for paying you not client (you have zero contractual relationship with the client)

Next what do your payment terms in the contract actually say? It should say something like "upon receipt of invoice/timesheets payment will be made in X days"

If it's 30 days/calender month and you submit invoices/timesheets monthly, well you are stuck with that until renewal time but more fool you for agreeing to it in the first place. Basically you are letting agency take a cut for pretty much doing nothing (aka no factoring), something far to many contractors are letting agents get away with at the moment.

If it says nothing at all about payment terms at all , well you are up the creek without a paddle as you will have to depend on what legal case law says is "reasonable"

And with large gaps between first day work is done until payment for it becomes due, you best hope the agency does not go under or you will be seriously out of pocket. If your agency cannot pay you without getting paid first they have serious cash flow issues already, you do realise many agencies are little more that 1 to 2 man bands working out of hole in the wall with a PC/fax machine and a contact list?

Next, anyone who accepts the line "you have to work a month in hand can alter their payment procedures to accomodate an individuals needs " needs to locked up to protect themselves from the world.

Little bit of information, agents lie, they lie a lot. If it's not in the contract expect to get shafted because that's the norm. If you don't get shafted you got lucky and should go buy a lotto ticket. Without any agreement in the contract at best, in writing at worst the agreement might not as well exist

Now the 6 month issue, are you opted in or out?
Easy way to tell:
Did they have you sign a opt out before introducing you to client (interview)? If no then you are opted in, which means many of the contract clauses might be invalid, like withholding payment. And the 6 month lock out (but if they have a lock out in the agency/client contract, theirs will still be valid and it's hard to find a client willing to take on that hassle/risk)

In summary, discuss payment terms before they send you contract (aka when negotiating rate after offered position), read the contract before you sign, make sure everything you discussed is in the contract (anything not in contract is considered not agreed to even if agent says otherwise) and when any problems crop up later go straight to the contract and check what it says before picking up phone to agent

[original PM]

I think the issue here is you seem to be implying they are withholding payment.

They are not they simple have long payment terms.

It is unlikely they will bend to your requirements because the bean counters will want to balance their books and keep as much money as possible in their accounts for as long as possible.

It is tough but once you get through the first part think about what happens in 6 months time - you will still be being paid for another month or so - which may ease the money worries until you get the next contract.

[slickcontractor]

This is yet another agancy scam, which drives me nuts

Happened to me also on my last contract. Like you they didn't tell me about it until I had signed the contract and was already on-site. I did everything to try and get them change the terms(not contract, as this is not contractual), threatened to complain to client, complained to client, complained to HR. None of it got me anywhere, except to p**s off the agency

One thing you could try is tell them that you have a serious cash flow problem and that you need to paid weekly in order to meet your very large outgoings, might have some effect...

I have had endless arguments with this tulip agent but i cant seem to get through to him and he even passed me to a more tulip of a boss of his. I gave up arguing because they are defeating me with their stupidity experience . just dont get the whole idea of holding back my pay. Purely beneficial come contract end for sure but i just cant get to terms with it.

[Ruse]

Does anyone know if agencies that claim that you have to work a month in hand can alter their payment procedures to accomodate an individuals needs e.g pay weekly or just monthly once the timesheets have been submitted?

The agent i dealt with explained the usual. You work the month, and you get paid the week after. After 2 weeks of non payment, it came to light that if i started in august, i would expect august only pay end september in my account meaning that they would hold back a month of my wages.

I dont mind the process but i dont think i am 100% comfortable with the idea of an agency paying me only when clientco has paid them which again came to light after some lengthly discussions.

Unfortunately i cant change agencies because of the "6 month on client site" clause on the contract.

any ideas on how to go about this or just hope for the best

This is yet another agancy scam, which drives me nuts

Happened to me also on my last contract. Like you they didn't tell me about it until I had signed the contract and was already on-site. I did everything to try and get them change the terms(not contract, as this is not contractual), threatened to complain to client, complained to client, complained to HR. None of it got me anywhere, except to p**s off the agency

One thing you could try is tell them that you have a serious cash flow problem and that you need to paid weekly in order to meet your very large outgoings, might have some effect...

[stillooking]

It can be difficult re-negotiating terms (including payment), I try to secure weekly payment even though the agents trot out the familiar spiel.

I'd go back to them and ask for improved terms. Not that I'm an expert as I've messed things up in the past...

It's part of an agencies risk and responsibility to manage their own overdraft.

[DaveB]

Does anyone know if agencies that claim that you have to work a month in hand can alter their payment procedures to accomodate an individuals needs e.g pay weekly or just monthly once the timesheets have been submitted?

The agent i dealt with explained the usual. You work the month, and you get paid the week after. After 2 weeks of non payment, it came to light that if i started in august, i would expect august only pay end september in my account meaning that they would hold back a month of my wages.

I dont mind the process but i dont think i am 100% comfortable with the idea of an agency paying me only when clientco has paid them which again came to light after some lengthly discussions.

Unfortunately i cant change agencies because of the "6 month on client site" clause on the contract.

any ideas on how to go about this or just hope for the best

If you didn't opt out you can try and swing the regulations at them since they *should* pay you regardless of whether the client has paid or not.

Otherwise the first time the try it go straight to the client and politely enquire if they have paid the agency or not and explain why you need to know.

[slickcontractor]

Does anyone know if agencies that claim that you have to work a month in hand can alter their payment procedures to accomodate an individuals needs e.g pay weekly or just monthly once the timesheets have been submitted?

The agent i dealt with explained the usual. You work the month, and you get paid the week after. After 2 weeks of non payment, it came to light that if i started in august, i would expect august only pay end september in my account meaning that they would hold back a month of my wages.

I dont mind the process but i dont think i am 100% comfortable with the idea of an agency paying me only when clientco has paid them which again came to light after some lengthly discussions.

Unfortunately i cant change agencies because of the "6 month on client site" clause on the contract.

any ideas on how to go about this or just hope for the best