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Help! Agency trying to change payment terms

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    Help! Agency trying to change payment terms

    Hi all, first post here having only recently returned to Contracting for just over a decade - changed a bit, hasn't it? I remember the good old days of single person companies, a company called Gabem (iirc), and not worrying about being paid.

    Anyway, I'm in a bit of a pickle and hope somebody out there can offer advice.

    I started up a contract a couple of months ago and have had nothing put problems getting paid. I originally signed a subcontract agreement with the agency stating that payment would be 5 days after the last Friday of every month. I was told that PAYE wasn't possible and that I would either have to go Limited or use an umbrella company - a UC back when I originally contracted made life so much easier that I went that route.
    My pay became sporadic with no sense of when or if I will be getting paid - up until today I had gone 7 weeks including Christmas with no pay.
    After a lot of email exchanges, it turns out that I am subcontracted to the agency, who are in turn subcontracted to a company that the Client uses exclusively for contracted labour.

    The agency started claiming that my pay agreement is 30 days after the last Friday of the month - it turns out that they slipped a contract to the umbrella company (who signed it) with the new payment terms and are now refusing to pay me as per my original subcontract agreement.

    Does the original subcontract agreement with the agency take precedent (if that's the right phrase) and if so, does that mean they are in breach of contract?

    #2
    This is where you need to take professional advice - if you're an IPSE member then ring the legal helpline (number is on your dashboard) and see what they say.

    What does your contract of employment with the umbrella company say about payment terms? That's where you need to start, though I would also say to the client that there's a chance that you might need to leave because you're not getting paid.
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