Payment As A Subcontractor

As a subcontractor or independent worker it can be hard to get paid on time. If jobs don’t work out, take longer than expected or cost more than expected, your employer may withhold payments until they get paid, putting you in a difficult position. However, it’s important to realise that you have a lot of rights as a subcontractor, and you can demand payment in some situations.

If you’re having trouble with payments from a contractor, client or other employer, you should consider consulting a commercial lawyer to determine what your best course of action is. In some cases, the simple threat of legal action will be enough to make sure that you get paid, but in other cases, you may have to take your client or employer to court.

What Do I Have To Do To Get Paid As A Subcontractor?

In theory, getting paid as a subcontractor or independent worker should be simple. Once you’ve completed a job, or at predetermined intervals, you will need to put together an invoice and submit it to your employer. Your invoice should be paid within a reasonable amount of time after you submit it, otherwise you’re entitled to take legal action or to seek legal advice from advisors such as

Unfortunately, getting paid isn’t always this easy. If you’re working under another contractor, they may be waiting for the person that they’re working for to pay them. Although they are supposed to pay you as soon as possible, they will often put it off for as long as they can. This can place you in a difficult position, and can result in all sorts of issues when it comes to running your business.

How Can I Force Payment?

Eventually, it might get to the point where you’re sick of waiting to get paid and you need to take steps to force payment. This might happen because the person that you’re working for doesn’t want to pay you, can’t afford to pay you or is trying to avoid payment for some other reasons.

Luckily, there are a few things that you can to do force them to pay up, including:

Adjudication – If you don’t want to go to court, but still want to get paid, you might consider using an industrial adjudicator to resolve your payment dispute. The exact process varies by state, so it’s important to be aware of how it works in your area.

Threats of court action – Often, sending another invoice with a reminder to pay and the threat of legal action is enough to prompt quick payment. This is a simple way to encourage contractors to pay you without having to go to ridiculous lengths.

Court action – Unfortunately, sometimes you will have to resort to court action. Speak to your local commercial law firm to determine the best course of action, and begin court proceedings when you think you’re ready.

Final Word

Although it can be hard to make sure that you get paid as a subcontractor or independent contractor, there are options open to you. Do your research and consider discussing your case with a commercial lawyer, especially if the unpaid sum is significant.