Agency not paying on time

**pzz76077** · 22 February 2010, 18:28

Originally posted by hugebrain View Post

My agency (Harvey Nash) has sent me an email saying they don't intend to pay on time as specified in the contract, and that I may have to wait for up to ten months for money they have agreed to pay in around two weeks.

What's the best procedure for dealing with this?

I presume that they are not in breach of contract just by sending an email, so I would have to wait until a payment is actually late before I do anything. Then they would be in breach of contract.

Should I just stop working then, or should I send them a letter saying that If I don't receive payment in a certain number of days or I will consider the contract as terminated.

What happens regarding notice periods? I assume that I won't have to give them a month's notice if they are not fulfilling their side of the contract.

What reason did they give for this offer to change the previously agreed trading terms??

Was it something that you did or are Harvey Nash having cash flow problems??

PZZ

**BolshieBastard** · 22 February 2010, 18:38

Originally posted by hugebrain View Post

My agency (Harvey Nash) has sent me an email saying they don't intend to pay on time as specified in the contract, and that I may have to wait for up to ten months for money they have agreed to pay in around two weeks.

What's the best procedure for dealing with this?

I presume that they are not in breach of contract just by sending an email, so I would have to wait until a payment is actually late before I do anything. Then they would be in breach of contract.

Should I just stop working then, or should I send them a letter saying that If I don't receive payment in a certain number of days or I will consider the contract as terminated.

What happens regarding notice periods? I assume that I won't have to give them a month's notice if they are not fulfilling their side of the contract.

Ten months!!? WTF!?

I dont se how they can delay paying you by up to 10 months.

**hugebrain** · 22 February 2010, 18:40

Originally posted by pzz76077 View Post

What reason did they give for this offer to change the previously agreed trading terms??

Was it something that you did or are Harvey Nash having cash flow problems??

PZZ

No reason given, it's for everyone at the client site. Not sure if they have cash flow problems or not.

**pzz76077** · 22 February 2010, 18:44

Originally posted by hugebrain View Post

No reason given, it's for everyone at the client site. Not sure if they have cash flow problems or not.

Personally, I would try and find out WTF is going on before making a decision.

Call up someone at HN and also speak with the end client. Is it HN or the end client that has prompted this situation?? Is the end client in trouble??

Post your update on here so that we know how you got on.

PZZ

**centurian** · 22 February 2010, 20:53

I would think they if they state that they are going to breach/amend the terms of the agreement, then that is evidence enough for you to withhold your services.

10 months is stupid and I would wonder if you will ever get paid. So basically there's a good chance that you are now working for free. Better off jacking it in and looking for something else.

Better to earn nothing having a lie in, playing some games and looking for work - than to earn nothing working your socks off.

I would try and work out what is going on pronto, but I wouldn't hang around too long if it doesn't look like you are going to get paid in this calendar year.

**centurian** · 22 February 2010, 20:55

Originally posted by hugebrain View Post

What happens regarding notice periods? I assume that I won't have to give them a month's notice if they are not fulfilling their side of the contract.

Read each clause carefully. Some contracts are crafty and basically state that a breach of one clause does not invalidate the contract. Whether they can get away with that in court is another matter.

But to put it bluntly, if they are not going to pay you, they're hardly going to sue you for withdrawing your services.

**cojak** · 22 February 2010, 21:07

Originally posted by centurian View Post

Read each clause carefully. Some contracts are crafty and basically state that a breach of one clause does not invalidate the contract. Whether they can get away with that in court is another matter.

But to put it bluntly, if they are not going to pay you, they're hardly going to sue you for withdrawing your services.

Bluddy hell, that's outrageous! Get professional help asap. And go to the Thomas Higgins website for late payment advice.

**TykeMerc** · 22 February 2010, 22:20

Originally posted by cojak View Post

Bluddy hell, that's outrageous! Get professional help asap. And go to the Thomas Higgins website for late payment advice.

WSS, I can't think of a single reason that this would be acceptable.

Despite Harvey Nash being a big agency the risk is completely silly.

The only reason I can think that they're trying this on is that the client has said they will take an absolute age to pay up, but carrying that risk is a sizable part of what the Agency margin is for from a contractors perspective.

Talk to the agency and clent (in that order), find out if it's genuine and why and seriously consider if you're ready to carry the cost and risk, personally I wouldn't.

**Wanderer** · 23 February 2010, 00:30

Wow, that's a really strange one. Why would a big agency like that come out with such a statement? Are we missing something here?

As others have suggested, I would contact the agency straight away and ask for an explanation. If they stick to their guns then speak to the client and ask what's going on. I've often found that approaching the client gets these things sorted out quick smart. Unless it's the client in difficulty, in which case you may be better looking for another contract.

Don't stop working unless you want to jack in the contract anyway. In any case, you would have to wait until they are in breach of contract. At least you are getting paid fortnightly rather than monthly.

If they still don't pay up then send them an ultimatum (7 days to pay) and follow it up in the small claims court. I've found that the threat of legal action makes them pay up pretty quickly once they realise that you aren't going to mess about...

Agency not paying on time