Payment of Invoices - Always Late!!!!!

**eek** · 9 January 2015, 08:49

Originally posted by hewetta View Post

Hi All

I have been through an agency with the same client now for over 2 years however a change in the agencies finance process has resulted in what I believe as late payment of invoices for months now.

I have spoken to the agency about this previously and they say whilst I submitted my invoices ok the client hadn't approved my time sheets hence why payment took longer than 30 days after my invoice was issued. Have also been told that payment may be longer than 30 days because they changed how and when they do there payroll runs.

I'm fed up with this and was wondering if I have a case for breach of contract? My contract wording for re numeration is as follows:
"5. Remuneration

5.1 The Company shall issue a monthly invoice to xxxxxx in respect of the provision of the Services to the Client. Remuneration will be monthly in arrears.

5.2 The invoices submitted pursuant to clause 5.1 shall be accompanied by time sheets which shall have been verified and signed by the Client,

xxxxxxxx shall settle the invoices submitted by the company 4 weeks after receipt.

5.3 The Company agrees that Xxxxxxxx may withhold payment to the

Company until it has received payment from the Client; if payment is withheld by the Client due to a dispute over the quality of work completed by the Company. Or if xxxxxx has not been paid by the client.

5.4 The Company warrants to xxxxxxx that it shall account to HM Revenue & Customs, the Department of Social Security and all other appropriate authorities for any income or other tax National Insurance contributions or social security contributions, in relation to payments made, or to be made by the Company to the Consultant and will indemnify and keep indemnified xxxxx in respect of the same (including any interest and penalties thereon) which xxxxxx may at any time be required to pay as a result of this agreement.

Any advice would be appreciated.

Reds

Ant

You are scuppered by clause 5.3 especially the last sentence. They don't need to pay you until the end client pays that. It is a valid clause but not one I would accept in a contract of mine (they have passed their financial risk to you).

**northernladuk** · 9 January 2015, 08:56

How late is late? I had a the same situation on a gig where they were always a couple of days late so the next contract I got had the payment terms changed from 30 to 35 days... To be fair they weren't late again after that

As long the agency is financially secure and it is just a few days late due to client interaction is a few days that bad. You can bet your bottom dollar if you go for breach of contract you wouldn't be having to submit any further invoices. Case of cutting own nose off?

**psychocandy** · 9 January 2015, 09:30

I've had this too where payment is always late. Always used to get there in the end but was always 1-2 weeks late.

It was irritating more than anything because it was a right ball-ache and waste of everyones time for me to chase it every single time....

**BlasterBates** · 9 January 2015, 09:51

My experience is no timesheet no agency payment. You need to push to get your timesheet signed on the last day of the month, and make a big fuss if they don't.

I wouldn't leave it to the client to handover the timesheet, you should be doing that, you just want the signature.

Once you submit a timesheet to an agency they'll pay regardless of whether the client has paid or not. That is the risk you can expect them to take on.

If the process is paperless, then just hassle the client to approve the timesheet on a daily basis. At least that way you get to see who is holding things up.

**Contreras** · 9 January 2015, 09:56

Originally posted by eek View Post

You are scuppered by clause 5.3 especially the last sentence. They don't need to pay you until the end client pays that. It is a valid clause but not one I would accept in a contract of mine (they have passed their financial risk to you).

Only valid if opted-out.

hewetta, If you're not sure what that is then pleased see the links in the sig. below.

Did you sign an opt-out agreement with the agency? and if so when?

**sal** · 9 January 2015, 11:11

Originally posted by northernladuk View Post

How late is late? I had a the same situation on a gig where they were always a couple of days late so the next contract I got had the payment terms changed from 30 to 35 days... To be fair they weren't late again after that

As long the agency is financially secure and it is just a few days late due to client interaction is a few days that bad. You can bet your bottom dollar if you go for breach of contract you wouldn't be having to submit any further invoices. Case of cutting own nose off?

^ This, besides:

Originally posted by hewetta View Post

I have spoken to the agency about this previously and they say whilst I submitted my invoices ok the client hadn't approved my time sheets hence why payment took longer than 30 days after my invoice was issued.

Originally posted by hewetta View Post

5.2 The invoices submitted pursuant to clause 5.1 shall be accompanied by time sheets which shall have been verified and signed by the Client,

xxxxxxxx shall settle the invoices submitted by the company 4 weeks after receipt.

What breach of contract? Are you submitting a signed timesheet with your invoices?

**BolshieBastard** · 9 January 2015, 13:06

As has been pointed out, if you have 'opted out' there's not much you can do except chase the agent everytime you submit your invoice \ self billing.

Late payment by a few days isnt a material breach of contract.

Payment of Invoices - Always Late!!!!!