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Recruitment Agency not paying..

(17 Posts)
HappyJoyful Wed 17-Oct-12 10:19:34

poor DH is beside himself with worry, as am I, and we don't know what to do..
He's been working for about 2 months for a company via a Temp Agency. All seemed to be fine in the first month but slowly the pay (it was supposed to be weekly) suddenly kept not arriving. Now it's been over a month.. the company he's working for keep appearing to have done all the right things and keep telling him it happens sometimes and not to worry, and that it will be in his account on Tues (then Friday) so on and so and now it's all a bit blah, blah..he keeps chasing and no one is answering emails or calls ? No idea where to turn or what to do as they are based in Lincoln and we're miles away. I have a worrying / niggling fear panic that we are about to be shafted? Any thoughts ideas or help in what we can do to sort this out would be gratefully received..
Thank you

TakingTheStairs Wed 17-Oct-12 10:22:18

I'd lay money on the client not having paid the recruitment agency and they haven't got the cash flow to pay you.. not your fault of course, but bad management by them.

I don't know what to suggest but I hope you get it sorted soon. It must be very stressful for you.

HappyJoyful Wed 17-Oct-12 10:35:39

Interesting you think it's that way round - somethings up for sure! I had my doubts more on the agency with the cash flow problem not the company DH working for, if it was that way round then why aren't the agency just answering DH's calls / emails and telling him needs to take it up with the company not them?

mrsconfuseddotcom Wed 17-Oct-12 11:38:57

Ring ACAS for advice and find another job quick!

flowery Wed 17-Oct-12 12:23:26

The reason they are not telling him to talk to the company is that his contract is with the agency, the agency's contract is with the company. It's the agency he needs to be hassling, their problems (if any) with getting paid by the company aren't his concern.

Having said that, although it's not the company's problem as such, they are probably in more of a position to pressurise the agency than your DH is, so assuming they have paid their bill with the agency, would his manager at the company be happy to intervene with the agency?

TakingTheStairs Wed 17-Oct-12 12:28:05

Sorry, I wasn't clear, I meant the company probably hadn't paid the agency and the agency hadn't got the cash flow to pay your DH while waiting for the cheque.
But as your DH's contract is with the agency it is up to them to pay him.
I would flag it with the company that he is working for through the agency though in a very casual way, ask them if contractors have had issues with that agency before and see if that could help at all?

HappyJoyful Wed 17-Oct-12 12:54:47

Yes, he's been hassling the company too and they do (to be fair on them) seem to be trying to sort it out - not entirely sure what's the amount of expected time though to it to be resolved before as someone has suggested trying to contact someone at an advisory service..
We'll keep phoning (and phoning) not sure what else we can do at this stage.
Thanks again for thoughts / suggestions

HappyJoyful Wed 17-Oct-12 12:55:21

Yes, he's been hassling the company too and they do (to be fair on them) seem to be trying to sort it out - not entirely sure what's the amount of expected time though to it to be resolved before as someone has suggested trying to contact someone at an advisory service..
We'll keep phoning (and phoning) not sure what else we can do at this stage.
Thanks again for thoughts / suggestions

StillSquiffy Thu 18-Oct-12 06:55:20

I am sure therecwill be a clause in DH's contract that he will only get paid after company pays agency.

We work alongside agencies and IME this is v common. Pressurizing agency to pressurize client rarely helps (they can usually afford to wait and would rather not piss off the client). best thing is to pressurize from bottom up - ie tell who he works directly for that they need to sort it. Threatening to leave sometimes helps, as does downing tools and telling them you will only come back when paid. Once we had to serve a winding up order but that's only worth it where tens of thousands are at stake.

These things usually settle down after a few runs through HR. It might be worth him asking the company what exactly the process is for dealing with this (there will be one, going from who signs timesheet to who authirises payment to who processes bacs run). then he can try to contact each person in the process in order to personally pressurize the right person at each stage. But he needs to be careful to be uber polite and not to upset anyone ifbhe goes down this route. Unless they have genuine cash-flow problems, the issue will be a single bottle-neck where one person simply doesnt priorities their part in the process.

HappyJoyful Thu 18-Oct-12 09:58:36

thanks stillsquiffy. As you say, he's remaining totally polite and trying to remain calm! Apparently other's are in same boat on other sites and have downed tools so we are hoping (as agency finally answered phone) it will be resolved by Friday. However, having heard this now for some number of weeks I am not convinced. Thanks again for support and advice.

DyeInTheEar Mon 22-Oct-12 14:11:12

Has this been resolved yet?

Is this a large or small agency? If the client is refusing to pay the agency then the agency needs to make that clear to the candidate and pull them from the assignment. If they are a small agency, living a bit hand to mouth and without much business though they may be keeping their fingers crossed money eventually comes through whilst the candidate goes without being paid for a while... very unprofessional all round. Without knowing your temp agreement I can't say whether the agency has the right to withhold any payment, however, I suspect a court would take a very dim view of this if it was the case. There have been cases where (long term) temp workers have got the same rights as permanent workers regardless of the contract they were told to sign.

I've never heard of an agency not answering their phones. This is quite revealing and quite worrying. They sound like they are in trouble TBH and avoiding all calls.

If this continues I'd contact REC and let them know though they are very limited in what they can do on your DH's behalf but at least you've reported poor service. This is only relevant though if the agency is a member of REC.

How to complain about an agency

HappyJoyful Tue 23-Oct-12 13:05:12

Hi thanks Dye.. sadly not yet resolved.. we have had a 'promise' that it will be this week, I live in hope! Finally spoke to someone at the agency (as you say, they are in trouble and haven't been paid so living hand to mouth)
Who are REC - sorry, excuse my ignorance - will report them this week if nothing comes through.
Nightmare! thanks for asking though and the tip to report them.

DyeInTheEar Tue 23-Oct-12 21:04:22

REC are the regulatory body that sets the recruitment industry standards and will also send inspectors to the agency to check their systems etc.

However, I think it is voluntary to belong. You can run an agency without being a member / approved by REC. But obviously the best agencies will go for the accreditation to show clients and candidates that they are trustworthy.

I don't think the REC have any real clout though if this agency is a member they may withdraw their approval.

This agency is behaving really badly - though the client not paying them is a bit of mystery. Is DH's line manager aware that he's not been paid at all? Are the agency being completely honest they have not received payment? If it was my candidate I'd be finding them another placement and fighting for their money.

It's all a bit odd and absolutely wrong for your DH. Good luck this week. I'm on mat leave at the moment - if it's not resolved feel free to PM me details and I'll do some digging as to whether they are REC approved and what your next step should be.

HappyJoyful Thu 25-Oct-12 15:13:41

Many thanks Dye, really kind offer (albeit one I am desperately hoping not to take you up on!) However, not looking promising. Tomorrow is cut off day and then we'll have to do something ??? Tried calling them again for 2 days but no answer - oh I lie, someone answered and said 'so and so was in a meeting' so we're really leaving it till tomorrow.
Thanks again.

DyeInTheEar Thu 25-Oct-12 19:58:19

Good luck. Look on their website for the REC tick / endorsement - if they have one I'd contact REC and let them know. I'd be they have great advice.

Fingers crossed. smile

HappyJoyful Fri 26-Oct-12 16:45:20

they didn't have a tick or endorsement but I emailed them anyway and I also contacted the organisations they did claim to be regulated by. No sooner had I done that and emailed them telling them I was doing this had a call from CEO and we've had a small interim payment... not sure it was my 'threat' but glad we seem to have some progress and don't feel like DH been totally shat on.
Thanks again all for tips and suggestions and of course the support.

DyeInTheEar Fri 26-Oct-12 19:33:43

grin well done! That's a good start! Hope the money continues to come in.

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