Agency withholding funds

[loftboy_uk]

Hi,

Yesterday I was told that the recruitment agency I am contracted to are withholding funds owed to me until they receive all outstanding payments from their client.

At present they owe for for the month of October and all work in November up to yesterday (although the Novemeber invoice hasn't been sent yet).

The client is two months behind in their payments and have just received another invoice.

I have a contract with the agemcy that has no mention of not paying me if the client does not pay them, only the time periods in which they must honour my invoice. The contract has been reviewed for IR35.

I have also opted out of the "April 2004, Employment Agencies & Employment Regulations Act".

Before I speak to the agency please can I have some advice on how I should approach this?

Many thanks,
M.

[Flubster]

Threaten the pimp with legal action, as per the terms of your contract with them. Payment from the end client has nothing to do with you.

[Sockpuppet]

Agreed legal action all the way. If you have PCG membership....use it!

Just tell the client & pimp that after Monday you shall no longer be completing work or handing over completed work units untill this matter is resolved.

[Epiphone]

Assuming you have payment instructions on your invoice wait until 30 days (or whatever) is up then charge em interest under the small business act.

I think you can get a company woun up for non payment too (Garishee something-or-other? C'mon someone who knows what they're doing, chip in)

[ratewhore]

Go here: http://www.payontime.co.uk/

If there are no payment terms in your contract then the law takes 30 days as a realistic figure. Therefore, any payment not made within 30 days of receiving the invoice can be subject to penalty payments and interest.

I have used this legislation to get an agent to pay my invoices and was successful in getting the penalties and interest paid as well (AlexMann)!! I reckon you should try that.

[Ardesco]

Write them an invoice for interest and tell them you will be taking them to court if they don't cough up quickly. You have a contract with the agency, not with the end client. Unless there is a clause in your contract that says you do not get paid until the end client pays them, they cannot withold your funds.

Get on them quick because this can be a sign that the agency is not doing well, there have been a few horror stories posted on these forums after agencies have witheld cash.

[BrilloPad]

Never have more than one outstanding invoice at once. Then if agency goes under, you can invoice end client direct.

Are there any other contractors in same situation as you? Any idea why client/agency not getting on?

[boredsenseless]

Never have more than one outstanding invoice at once. Then if agency goes under, you can invoice end client direct.

Are there any other contractors in same situation as you? Any idea why client/agency not getting on?

You can't invoice the end client direct unless they agree as the end client is actually a debtor of the liquidator of the agency and as such the money is already accounted for

[DaveB]

You can also threaten to apply for a Garnishee Order in the County Court.

A Garnishee Order is where a third party (the garnishee) is ordered to pay to the creditor a debt he owes to the debtor. So if the client really owes the agency money you can issue the order direct to the client to get the money owed directly.

If the client doesnt really owe the agency money then they really wont want you getting court orders against their client and hopefully that threat will be sufficient incentive for them to pay you.

[rootsnall]

Who are the agency ? Are they likely to go under ? Who is the end client ? Are they likely to go under ?