Reply to: What to do when non-payment from end client during last week of working...

[rob s]

Check companies house for the home address of the agency directors, ask the agency if they'd like your invoice hand-delivered to their home address as the other one keeps getting lost.

This does not constitute legal advice.

[GB9]

You can charge late payment costs and interest retrospectively

Remember that agent that was a nightmare and never paid on time? Feel free to calculate a claim and send it off, but don't expect payment without

Would never usually charge for a late or missed payment as long as it was just an error and I was sure I was going to get paid. The problem I had was with an agency that claimed I owed them from future work. Firstly, I didn't (their contract clause was illegal and not even correctly applied) and secondly, they didn't invoice me for anything in advance, they just kept the last months fees from my contract through them).

[Safe Collections]

Not quite.

They owed my company one month's fees for 3 / 4 months at a rate of 8% over base. It would be a nice little earner if you could get that regularly.

You can charge late payment costs and interest retrospectively

Remember that agent that was a nightmare and never paid on time? Feel free to calculate a claim and send it off, but don't expect payment without

[GB9]

They made £900 interest from one months fees? That is an account I want!!!!

Not quite.

They owed my company one month's fees for 3 / 4 months at a rate of 8% over base. It would be a nice little earner if you could get that regularly.

[northernladuk]

Better still, all contract companies should have insurance that covers legal costs for the pursuit of unpaid debt. It saved me a lot of grief a while ago when a rather unscrupulous agent decided my company should provide them with commission for the next 6 months and they were going to keep my company's last month fees to cover the cost. They ended up paying all my costs plus £900 in interest, all because they thought the crap in their contract gave them the right to.

They made £900 interest from one months fees? That is an account I want!!!!

[fraymond]

Better still, all contract companies should have insurance that covers legal costs for the pursuit of unpaid debt. It saved me a lot of grief a while ago when a rather unscrupulous agent decided my company should provide them with commission for the next 6 months and they were going to keep my company's last month fees to cover the cost. They ended up paying all my costs plus £900 in interest, all because they thought the crap in their contract gave them the right to.

GB9, which insurer was that with? I don't have that cover but would like to take out a policy.

[Safe Collections]

Wrong. You're due money for time worked not for notice period not worked. Not saying its not worth a tilt at the lot but those 4 days are somewhat different.

Professionally speaking, we would say claim for the days worked. Claiming for notice period days not worked generally just gives another reason for the debtor to delay or refuse payment.

[psychocandy]

NL UK has changed his answer 5 times. The first one wasn't helpful at all.

The agent probably doesn't want to upset the client, and will be hoping you roll over. Don't. You should be paid for the work you did, and possibly the rest too if your contract specified a notice period that they didn't stick to.

Wrong. You're due money for time worked not for notice period not worked. Not saying its not worth a tilt at the lot but those 4 days are somewhat different.

[GB9]

Send agency a letter pointing out that the time was worked and that payment is due (this is provided that payment was on a time based rate).

When the debt is due then send them another letter stating that:

- time is of the essence
- that you will charge interest in line with the Late payment of commercial debt legislation. This is currently 8% over BoE base rate.
- state that if payment is not made you will take them to court and request the court costs are added to the judgement

Await reply. Repeat the above.

Start court action.

The judge is within their rights to strike out any clause of the contract e.g. the one that says timesheets need to be signed in order to gain payment.

If you want the money you have to be prepared to take the court action.

Better still, all contract companies should have insurance that covers legal costs for the pursuit of unpaid debt. It saved me a lot of grief a while ago when a rather unscrupulous agent decided my company should provide them with commission for the next 6 months and they were going to keep my company's last month fees to cover the cost. They ended up paying all my costs plus £900 in interest, all because they thought the crap in their contract gave them the right to.

Lesson - just because you sign a contract it doesn't mean it is legal or will stand up in court.



Edit: you could also potentially sue the end client for loss but more complicated and worth a chat with a solicitor first.

[kingcook]

Agent should be on your side as it is his commission that has evaporated for those days as well.

Not necessarily. One client-to-agent contract I saw said that fees must be paid [by the client to the agent] regardless of whether the timesheet is signed or not (not sure how they can enforce this).

Yet my contract stated: no timesheet, no pay.

[Andy Hallett]

What to do when non-payment from end client during last week of working...

Three things.

1) Are you opted out? It does make a difference and it is remarkably difficult to comply with all the steps to get a contractor opted out. This topic is covered elsewhere so I won't flog it to death.

2) Are the end client disputing that you worked, or the quality of your work?

3) Your umbrella company are your employer, what do they say about it as your contract is with them, not the agency.

[northernladuk]

The opt out is important, if it was signed but it was after you were introduced to the client then it may not be valid.

From what I have read the wording is ambiguous as it says something like 'or started work' but no one has ever taken it far enough to test what the really means. I think it is to cover instances where introduction has already taken place, i.e. if you get the contact and just find an agent cause they can't deal direct personally but agents don't think so.

4. Name and shame the agency here we always like to know about agencies which screw their contractors.

I don't like comments like this personally. Be absolutely sure they are screwing your first. This kind of thing has come back and bitten people on here before when the other party comes on and lays the facts bare....

[Wanderer]

Good advice so far. I'd proceed on the basis that the agency should pay you regardless of anything else and if they want to argue it then they can do it in court.

The opt out is important, if it was signed but it was after you were introduced to the client then it may not be valid.

1. Do a search for "Dunning" on this site. Dunning is the process of chasing a debt and you aren't the first one who has been stiffed by a client/agency.

2. Get a solicitor to write a threatening letter to the agency. One that comes to mind is Thomas Higgins who will do it for £2 + VAT. Don't expect any advice from them for your £2, but they will send a stern letter for you and that will put the frighteners on the agency.

3. Take it to small claims court, see Money Claim Online - you can start legal action quite cheaply. Hopefully the agent will just cave in when you threaten court action.

4. Name and shame the agency here we always like to know about agencies which screw their contractors.

[northernladuk]

Also here are all the threads other people have started in the same position.. There is, unforunately, a lot of them. Might be something that will help you in there...

agent not paying site:http://forums.contractoruk.com/business-contracts - Google Search

[northernladuk]

18 pages - the gist is that if you didn't sign the opt out before meeting the client, you're not opted out. Not sure that anyone's tested this in anger.

..and that if you are opted in they have to pay you regardless of times sheets.. (hope I got that the right way around)