Here's my predicament: Contracting through umbrella company to agency to client. Contract with umbrella defined as paid weekly, contract with agent defined as paid weekly. Beancounters at agency say invoices paid on fortnightly payment cycle - I now have 4 weeks of time-sheets approved by client, logged into agency system as invoice and flagged as pending payment but not one has been paid. Umbrella company has advanced me 1/5th of net o/s invoices value. I'm now 5 weeks into contract and up-front costs. What action can I take to make the agency pay?
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Advice on action to take when agency hasn't paid?
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Originally posted by Wanderingoffagain View PostHere's my predicament: Contracting through umbrella company to agency to client. Contract with umbrella defined as paid weekly, contract with agent defined as paid weekly. Beancounters at agency say invoices paid on fortnightly payment cycle - I now have 4 weeks of time-sheets approved by client, logged into agency system as invoice and flagged as pending payment but not one has been paid. Umbrella company has advanced me 1/5th of net o/s invoices value. I'm now 5 weeks into contract and up-front costs. What action can I take to make the agency pay?
Best if you put up all the bits of the contract to do with payment frequency and being late. -
I doubt you can do anything to make the agency pay. You don't have a contract with them. It's up to your umbrella comapy.
Your umbrella company could start charging late payment interest and admin fees. Your umbrella company could even do aggressive stuff like issue a Notice to pay, solicitors letters, or even start winding up procedures. Your umbrella company could get some debt collectors in. etc.Down with racism. Long live miscegenation!Comment
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of all the things you can do don't do nothing.
are there any other contractors at the client site suffering this problem? if there are - be prepared to walk. mention the situation to the end client and prepare them that you will walk if funds are not forthcoming.
get on the phone to the umbrella an get confirmation from them what action they will take. write it all up, record all the transactions so far post it off asap to the umbrella.
monitor the situation daily - one missed deadline is perhaps a mismanagment that can be accepted two or more is not. warning bells are ringing - heed their call.
fingers crossed the agency is not going down.Comment
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Thanks to all for your time and advice so far. Over the weekend I decided that the most appropriate and effective course of action would be a no-show on Monday and to phone the client (IT Director) at 9am and explain the "no-payment" situation. This I did, and immediately afterwards I phoned my runner at the agency and relayed the conversation with said IT Director. 15 minutes later I have a call from my runner to say that cleared funds will be in my account by tomorrow (Tuesday) "apologies for delay but it wasn't our fault"... I agreed to go back on-site tomorrow BUT if the funds aren't in my bank then I'm going to walk. Thanks again folks for advice, I may need more yet. BTW I don't wish to name agency just now but it does rhyme with "F**kd me"Comment
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Are you reasonably confident you can find something else ? If you are then down tools asap, have a polite word with the client and explain things and say you are going on holiday and you'll be back when you get paid. Are you in the PCG, ring the helpline !?Comment
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Are you opted in our out or shake it all about?
IF you are opted out then you are silly (as opted status does not do anything to protect you against IR35). Actually...why arent you using your own real company where you can decide how to arrange your own financial affairs?
Anyway, has anyone told you why you havent been paid? That would be a good place to start.
MailmanComment
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Originally posted by Mailman View PostAre you opted in our out or shake it all about?
IF you are opted out then you are silly (as opted status does not do anything to protect you against IR35). Actually...why arent you using your own real company where you can decide how to arrange your own financial affairs?
Anyway, has anyone told you why you havent been paid? That would be a good place to start.
MailmanBlog? What blog...?Comment
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Originally posted by malvolio View PostHe has a brolly. Where does IR35 come into it exactly?
MailmanComment
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