Invoices not paid by Agency

[Asha001]

Hi All,

I am in a tricky situation in regards to the payment that has to be received from my agency. To cut short was working away from UK due to COVID-19, but was agreed by client and I know invoices have been paid out to agency. However as per the contract have to inform the agency on the same but failed to do so which is not intentional. Now the agency stopped paying the invoices asking why I have not informed.

Even on repeated request they ask the same question but don’t pay or say anything. It’s been 4 months now. Are the options to get the money?

Thanks in advance.
Regards

 

[simon field]

You worked directly for a client when your agency contract says no?

 

[Asha001]

You worked directly for a client when your agency contract says no?

no I was not working for the client directly what I meant is was working as agreed with client but forgot to inform agency that I was working away from UK. Hope this is clear?

 

[Newchodge]

no I was not working for the client directly what I meant is was working as agreed with client but forgot to inform agency that I was working away from UK. Hope this is clear?

Sorry, not clear at all. Who has to receive money from your agency? What invoices have been paid out to the agency, by whom?

"However as per the contract have to inform the agency on the same but failed to do so which is not intentional. Now the agency stopped paying the invoices asking why I have not informed." Who has to inform your agency of what and why?

If it is your agency what is the problem?

When whoever it is asks the same question, what is the question and what answer is given and by whom?

 

[Alan]

This is what I understand.

You worked for the agency but was unusually working outside the UK and theagency contract states you can only work outside the UK by prior consent.

You failed to obtain such consent.

The agency is holding to their side of the contract and not paying.

Unfortunately you need legal advice to read the contract clauses and see if they can be upheld in court. It may well be a letter from a solicitor asking clarification on the clauses prior to court action may persuade teh agency to pay. But it sounds that you were in the wrong and breached contract.

 

[Asha001]

This is what I understand.

You worked for the agency but was unusually working outside the UK and theagency contract states you can only work outside the UK by prior consent.

You failed to obtain such consent.

The agency is holding to their side of the contract and not paying.

Unfortunately you need legal advice to read the contract clauses and see if they can be upheld in court. It may well be a letter from a solicitor asking clarification on the clauses prior to court action may persuade teh agency to pay. But it sounds that you were in the wrong and breached contract.

Hi Alan and Cyndy,
Thanks for your quick reply.

You are almost close Alan but it was the other way round I usually work from inside UK and this occasion I had to work outside UK and failed to inform the agency. I understand there was breach my question is can they held the invoices due to the breach of contract when timesheet has been approved and paid by the client?

Thanks.

 

[Mr D]

Hi Alan and Cyndy,
Thanks for your quick reply.

You are almost close Alan but it was the other way round I usually work from inside UK and this occasion I had to work outside UK and failed to inform the agency. I understand there was breach my question is can they held the invoices due to the breach of contract when timesheet has been approved and paid by the client?

Thanks.

Can they hold the invoices due to breach of contract?

Get with a solicitor show them the contract and explain.

 

[Newchodge]

Hi Alan and Cyndy,
Thanks for your quick reply.

You are almost close Alan but it was the other way round I usually work from inside UK and this occasion I had to work outside UK and failed to inform the agency. I understand there was breach my question is can they held the invoices due to the breach of contract when timesheet has been approved and paid by the client?

Thanks.

That depends entirely on your agreement with the agency.

 

[Big G]

Asha,

This is quite difficult to understand to be completely honest with you but, if you have worked legitimately for a customer who has then paid your invoices to the agency and they are withholding, that is simply unfair.

Would you like to send me a copy of the contract and correspondence and I will review it for you completely free of charge. Just so I can have a little look and understand it more before providing my opinion.

 

[antropy]

forgot to inform agency that I was working away from UK

That is quite a major thing to forget to inform the agency! Alex

 

[Asha001]

That is quite a major thing to forget to inform the agency! Alex

“It was not done intentionally”, didn’t realise that there is a clause in the contract that I have to inform them.

 

[Newchodge]

“It was not done intentionally”, didn’t realise that there is a clause in the contract that I have to inform them.

Do they charge your client more if you are working outside the UK?

 

[Asha001]

Do they charge your client more if you are working outside the UK?

No they don’t as far as I am aware

 

[Newchodge]

Then contact the head of the agency direct, explain that yoiu have not been paid and ask why.

 

[Asha001]

Then contact the head of the agency direct, explain that yoiu have not been paid and ask why.

All this started when I contacted him about not getting paid

 

[Newchodge]

All this started when I contacted him about not getting paid

Then contact the head of the agency direct, explain that yoiu have not been paid and ask why.

 

[Paul Norman]

Essentially, this is a negotiation.

It sounds as though, by the letter of the agreement, they can do this. If this goes to court you would probably not win - but of course, I have not read the agreement.

But it is a bit unfair. So set up a proper conversation with the agency and seek to negotiate a solution. If you need to get someone to speak for you, do that.

If that fails, sadly, I don't really see a stage beyond that. Always read contracts. Always.

 

[Financial-Modeller]

Clarity doesn't seem to be a strength here, which is probably a contributory factor, but in an effort to try to find a way through this, is the following correct @Asha001

1. you personally - and not your LtdCo - signed a contract to work for a UK-based client, via a UK-based agency as an employee and not as a service provider
   
2. you did work, submitted timesheets to the client, and submitted invoices to the agency, which were paid in the normal manner
3. you sought and received written agreement from the client that you would move away from UK and continue to work for the client via the agency.
   
4. you didn't notify the agency of the move
5. after payment of at least one invoice, you moved away from UK and continued to work for the client, submit timesheets to the client and submit invoices to the agency
6. The client continued to approve your timesheets, and has continued to pay agency invoices for four months
7. The agency hasn't paid your invoices for four months but you have continued to work

 

[Asha001]

Clarity doesn't seem to be a strength here, which is probably a contributory factor, but in an effort to try to find a way through this, is the following correct @Asha001

1. you personally - and not your LtdCo - signed a contract to work for a UK-based client, via a UK-based agency as an employee and not as a service provider. Asha- I have signed the contract with my LtdCo as a service provider.
2. you did work, submitted timesheets to the client, and submitted invoices to the agency, which were paid in the normal manner. Asha - Yes correct
3. you sought and received written agreement from the client that you would move away from UK and continue to work for the client via the agency. Asha - I am still working to the client via the agency I was on a holiday and got struck there due to COVID-19 situation as no international flights operated. Informed client and upon approval stated working.
   
4. you didn't notify the agency of the move - Asha - didn’t inform them as I am not aware of the clause in the contract or don’t remember but was not intentional not to inform them
5. after payment of at least one invoice, you moved away from UK and continued to work for the client, submit timesheets to the client and submit invoices to the agency. Asha - Yes but moving away was not intentional as said above
6. The client continued to approve your timesheets, and has continued to pay agency invoices for four months. Asha - Yes
7. The agency hasn't paid your invoices for four months but you have continued to work. Asha - Yes

.
Please find reply highlighting in bold

 

[Asha001]

Essentially, this is a negotiation.

It sounds as though, by the letter of the agreement, they can do this. If this goes to court you would probably not win - but of course, I have not read the agreement.

But it is a bit unfair. So set up a proper conversation with the agency and seek to negotiate a solution. If you need to get someone to speak for you, do that.

If that fails, sadly, I don't really see a stage beyond that. Always read contracts. Always.

Yes valuable lesson learned hopefully not a costly one. Trying to contact they don’t reply back or contract me.

 

[Financial-Modeller]

.
Please find reply highlighting in bold

Thanks.

You went away on holiday, but due to Covid, basically stayed away for 4 months.

Is it possible that the client is a bank / government department / corporate, with clear security implications of accessing their network from outside UK?

 

[Newchodge]

The problem might arise from tax laws in the country the OP was working from?

 

[Asha001]

Thanks.

You went away on holiday, but due to Covid, basically stayed away for 4 months.

Is it possible that the client is a bank / government department / corporate, with clear security implications of accessing their network from outside UK?

Yes a government project, but only started working after getting approvals from client as required and only accessing those that should be used outside of UK as instructed. And my contract finished when I was still there and informed the agency that the laptop was handed over to the client local office as instructed by the client.

 

[Financial-Modeller]

Yes a government project, but only started working after getting approvals from client as required and only accessing those that should be used outside of UK as instructed. And my contract finished when I was still there and informed the agency that the laptop was handed over to the client local office as instructed by the client.

Ok, so reading between the lines (still) the agency will have been notified that you accessed the government's network from overseas, which presumably constituted a breach of security and/or contract.

The agency presumably didn't inform you of the breach at the time, and didn't inform you when you submitted invoices.

The question remains; why did you continue to work for four months without payment?

Any recovery is going to depend on you proving that they didn't communicate termination of the contract to you.

I suspect there is still more to this than has been shared thus far.

 

[Asha001]

The problem might arise from tax laws in the country the OP was working from?

Ok, so reading between the lines (still) the agency will have been notified that you accessed the government's network from overseas, which presumably constituted a breach of security and/or contract. Asha - I am not aware if the client has informed.

The agency presumably didn't inform you of the breach at the time, and didn't inform you when you submitted invoices. Asha - again no information on this to me. I am only thinking they know after I have informed them about me handing over the laptop in the clients local office where I was struck.

The question remains; why did you continue to work for four months without payment? Asha - sorry should have told corrected myself earlier. Agency normal pays one month in arrears so say invoices for the month of May will be paid in July and the June invoice is paid in August and so on. And sorry should have corrected it earlier it’s two months worth of invoices they have to pay. Say my contract is not extended after June so by the end of the contract I got two invoices yet to be paid.

Any recovery is going to depend on you proving that they didn't communicate termination of the contract to you.

I suspect there is still more to this than has been shared thus far.

i have shared everything as far as I know not trying to hide or tell about my side of the story being very honest here. Agree that I should have been aware of the terms in the contract. Trying to get a solution on how to get the invoices paid.