Advice please: contractor hasn't paid me for two months

[MissM]

I'm on a retainer with a contractor and have been lucky enough to have a year's contract on a good daily rate. This has been my main (at times only) source of income for the last year.

Due to new budget restraints, they want to reduce the number of days I work for them each month and have a new contract for me to sign. However, they haven't paid my invoice since June - I am owed two months pay. Phone calls and emails have only elicited vague reasons for non-payment, and promises that I will be paid for both months 'next week' (nothing has materialised when the week arrives). I have had to borrow money to pay my mortgage this month - luckily due to very prompt payment from another employer last month I didn't have to do the same in July.

My question is, what do I do? Do I not sign the new contract till they pay me? Do I tell them I won't do any work for them until they pay me? Or do I keep my mouth shut as I could risk losing the contract all together (unlikely, as I know I do the job well and they value my work, and without being arrogant the work is very time-critical and it could take them a while to find someone else. But is it worth the risk)?

Has anyone else been in this position? I can't keep relying on promises that I'll be paid 'this week'. This isn't the first time that it's happened btw, although it was just one month's payment that was late last time, not two.

Send them a final notice with interest and a warning that you will take this to small claims court if they do not pay within 48 hours by direct transfer to your bank. Don't let good business relations cloud your judgement here. They owe you money, with a late payment surcharge to cover the costs and inconvenience of you having to borrow.

Don't sign new contract until they have paid. Don't do any more work for them until they have paid. Contact Citizens Advice too.

I'd agree, final notice and then start looking into the Small Claims Court process. It is depressing that a 'live' client treats you like this, but try to not take it personally.

I found it very stressful when someone didn't pay me.

Do you have t&cs of your own? I had some produced after I wasn't paid as I was concerned it would all look a bit wooly if it came to the SCC.

Do you think they are in financial trouble?

You poor thing, there is nothing worse for the stress levels.

Agree with the others.

Thank you all, that's really helpful. I've never been in this position before (apart from with them), so am feeling all at sea with it! I rang the bank in tears when it happened last time (they were very nice about it).

I don't have t&cs other than a note at the bottom of all my invoices that says 'Please pay within one calendar month' or something along those lines. But perhaps I need to work up something a bit more substantial!

I think they may be in financial trouble, which is why the budget has been cut for this work, but they're a huge company so should be able to pay their consultants! They're also breaching their contract with me as it states they I'll be paid at the end of each working month, and I haven't!

Really appreciate the advice from a non-emotional perspective - thanks.

Update: took all of your advice, plus contacted the Society of Authors who do a great information sheet on how to chase payment. Used it to tell the company that I wasn't going to continue with the work until they paid me, and that I was entitled to claim interest if they've not paid within a week. Had two very contrite emails back assuring me that they don't want to spoil the relationship so fingers crossed things will start moving!

Thanks all, feel much more in control now.

Well done OP! Fingers crossed they follow through.