IT Contract - Agency payments terms...
Discussion
So, I started a new job about 6 weeks ago, through an agency I have never heard of, but they seem a reasonably large organisation, and all above board. Was told when I joined, that there would be a three week period during which they would not pay me, which I assumed was for setting up payments, P45 etc..
As I had just come out of a period of unemployment, money was a little tight, so I asked if they could speed things up, which they duly did, and paid me at the end of the 2nd week. This is the payment terms I have had at every other contract I have ever done, you do two weeks work, and get paid for the 1st week at the of of the 2nd.
The agency agreed to pay me as I have said above, but I NOW have to wait another three weeks before I get paid again, apparently this was agreed by me I agreed the T&C's, and I need to get into the same arrears as all their employees.
They do this, I am told, because of delays in my employer (who I am contracted to) are slow in paying THEIR bills.
Sureley that's THEIR problem, not mine?
As I had just come out of a period of unemployment, money was a little tight, so I asked if they could speed things up, which they duly did, and paid me at the end of the 2nd week. This is the payment terms I have had at every other contract I have ever done, you do two weeks work, and get paid for the 1st week at the of of the 2nd.
The agency agreed to pay me as I have said above, but I NOW have to wait another three weeks before I get paid again, apparently this was agreed by me I agreed the T&C's, and I need to get into the same arrears as all their employees.
They do this, I am told, because of delays in my employer (who I am contracted to) are slow in paying THEIR bills.
Sureley that's THEIR problem, not mine?
worsy said:
What does your contract say?.
Mine is work a month and invoice, paid at end of second month. Weekly would be heaven!
Mine's work a month, submit hours for approval, then invoice then payment 30 days later.Mine is work a month and invoice, paid at end of second month. Weekly would be heaven!
Not uncommon that I'm getting paid for a day's work 2 1/2 months later.
ewenm said:
When you say "Agency" are you an employee of the agency (umbrella) or do you have your own limited company with a contract to the agency?
I was recruited by an agency, they pay my Danbro, my umbrella company, (who are excellent by the way and a recommendation off of here). The 21 day delay is with the agency, the umbrella company pay me immediately.My T&c's as stated above indicate this delay, and I (had to) accept these terms in order to get the role. I was merely trying to find out if this was common practice, as i had not come across it before in my 9 years of contracting,
onyx39 said:
Sureley that's THEIR problem, not mine?
You are going to have, and have already had, so many differing accounts of what is correct.The only answer really is what your contract with the agency says. read the T&Cs and if they do anything qucker be grateful.
For reference, I've been contracting for 20+ years and have been paid weekly, monthly, on the dot, 1 week after invoice, 2 weeks after invoice, etc... It changes with every contract depending on the agency.
I know some people who seem to work for agencies that wait for the client funds to be paid and cleared before they pass on the monies. This is wrong and I would not work on these T&Cs unless desparate.
onyx39 said:
I was merely trying to find out if this was common practice, as i had not come across it before in my 9 years of contracting,
Seriously? You've managed to bill weekly for the whole 9 years? I'm really rather surprised there. Standard business Terms & Conditions for Business to Business work is monthly billing a month in arrears with 30 days payment terms. Anything less than that is a bonus.
Personally I find weekly billing a pain in the neck - raising a VAT invoice on a weekly basis is a chore.
JonRB said:
onyx39 said:
I was merely trying to find out if this was common practice, as i had not come across it before in my 9 years of contracting,
Seriously? You've managed to bill weekly for the whole 9 years? I'm really rather surprised there. Standard business Terms & Conditions for Business to Business work is monthly billing a month in arrears with 30 days payment terms. Anything less than that is a bonus.
Personally I find weekly billing a pain in the neck - raising a VAT invoice on a weekly basis is a chore.
Billing is a doddle, I get my time sheet signed, fax it off and that pretty much it!
Piersman2 said:
For reference, I've been contracting for 20+ years and have been paid weekly, monthly, on the dot, 1 week after invoice, 2 weeks after invoice, etc... It changes with every contract depending on the agency.
Indeed. Same here (only in my case only 12 years)Piersman2 said:
I know some people who seem to work for agencies that wait for the client funds to be paid and cleared before they pass on the monies. This is wrong and I would not work on these T&Cs unless desparate.
Totally. I had one agency who tried this on when the client got into financial difficulties and didn't pay and the agency tried to withold payment over it. Had to go to court over it in the end. As I said to the agent during one of our many 'discussions' on it before it went legal - "what the
do you think you get your 20% cut for? For hooking my company and the client up and nothing else? You are factoring the debt - that's what I'm paying you for. If the client hasn't paid you then that's tough really. That's the business risk you take when you factor."onyx39 said:
yes.. .always been weekly paid whilst contracting. Did this from 2003 to 2006 when I went Perm and then from September last year onwards.
Billing is a doddle, I get my time sheet signed, fax it off and that pretty much it!
Sounds more like perma-temp to me. Good luck with IR35. Billing is a doddle, I get my time sheet signed, fax it off and that pretty much it!
JonRB said:
onyx39 said:
yes.. .always been weekly paid whilst contracting. Did this from 2003 to 2006 when I went Perm and then from September last year onwards.
Billing is a doddle, I get my time sheet signed, fax it off and that pretty much it!
Sounds more like perma-temp to me. Good luck with IR35. Billing is a doddle, I get my time sheet signed, fax it off and that pretty much it!
lestag said:
onyx39 said:
Sureley that's THEIR problem, not mine?
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