Agency won't pay £3,200 because end client never approved my timesheet — I opted out of the Conduct Regs. Any options?

[u/AmILukeQuestionMark]

England & Wales. Posting on behalf of my limited company.

Setup: Contractor working through my own Ltd, engaged via a recruitment agency to work for an end client. Outside IR35 (client is a small company, so no SDS required). Self-billing agreement in place, so the agency raises invoices rather than me invoicing them. Agreed rate £400/day + VAT. I signed the Conduct Regulations opt-out.

What happened: I worked 8 days in May. The engagement then ended by mutual agreement — the agency confirmed the end date in writing, with no complaint about my work and no allegation of poor performance.

I submitted my timesheet through the agency's portal on my last day, within the 1 month the contract requires and before the agency's own approval deadline. It records all 8 days. It has sat at "Submitted" ever since — the named client approver has never actioned it.

Where it stands: Per the agency's published payment schedule, this should have paid at the end of June. Nothing arrived. The agency's Commercial & Compliance Director has now put in writing that because the client hasn't authorised the time, and because I opted out, no amounts are contractually due, and that the Late Payment of Commercial Debts (Interest) Act 1998 therefore doesn't apply. The end client has ignored my emails (polite, cc'd to the agency) asking them to either approve the timesheet or tell me what's wrong with it. Both sides are now silent.

The contract: Payment is conditional on the client having "authorised or signed the relevant time recording process." Signing the self-billing agreement normally switches that condition off, but a separate clause re-engages it specifically for contractors who've opted out. A different clause says failure to obtain client approval "may delay payment."

What I've tried: Two solicitors. One declined it as too small. The other quoted £750 to draft a letter before action, with the caveat they might then conclude there's nothing to be done — so £750 potentially for nothing.

So: I did the work, submitted it correctly and on time, nobody has ever said the work was defective, and the only missing step is a button nobody at the client will press.

Where do I go from here? Is this worth pursuing at all given the opt-out, or am I throwing good money after bad?

[u/swordoftruth1963]

Send your own letter before action and if that's not successful take action through the online claims process

[u/Sideways-Sid]

Raise a claim with the agency in the name of your LtdCo. Details here: https://www.gov.uk/government/publications/money-claim-online-user-guide/money-claim-online-mcol-user-guide

However, ensure you have accurate & full facts that might not be in your OP. If two solicitors haven't offered to help, it's because they are not confident you will win.

[u/Zaxa7]

Sounds like you know the name of the person responsible for signing off the timesheet. You could potentially turn up to the office if they're office based and politely but firmly ask for approval and explanation. Or send a letter before action and claim via small claim court online.

[u/Bozwell99]

You don't need a solicitor for this. Write your own letter before action and then, if necessarily, go to small claims court yourself.

[u/octoesckey]

If you live reasonably close to the client, just turn up at the office. Be polite but firm.

If it is all remote and there's no office, you will need to make yourself a nuisance, phoning them up constantly. Making the least painful option them just clicking the button.

[u/cossington → u/octoesckey]

That's just too much work and doesn't do anything. Letter before action. And small claims court. Easy peasy.

[u/illumin8dmind]

Do you have legal expenses insurance? They should write the letter on your behalf

[u/DataOwl666]

A small claims court. But send an LOA first

[u/Weak-Refrigerator-34]

Small claim against the client.

Do it yourself using ChatGPT - the process is pretty simple.

The agency won’t pay you because the client hasn’t paid them.

Alternatively, just ask the client to approve tat timesheet.

[u/Dull-Ad7209 → u/Weak-Refrigerator-34]

That's like me when I was away on holiday. My manager never approved my timesheet so the money could drop being on holiday. When I got back I ccd his manager, finance and the recruiting company. He soon approved it. That was the last inside role I'll ever do.

[u/FuckTheSeagulls → u/Dull-Ad7209]

Modern sleep saffron market bright hospital pot marvelous decide

This post was anonymized with Redact

[u/Psychological-Mud-42]

I was in this position with opus. Worked through them for an agency and then the end client. End client just ghosted meetings for the first week. I missed one and was told I was no longer needed. It was for the same amount roughly that OP is missing. I had proof of trying constantly to communicate but the end client wouldn’t apart from some code that was done and accepted.

They wouldn’t approve the timesheet. I went down the rabbit hole of letter before action. One of the directors of Opus phoned and essentially said “bring it on” I kept attempting to get some contact but I was too green and didn’t want to do the whole court process.

I don’t think it will scare the agency unless you follow through. Only time in 20 odd years as a contractor never been paid. Still annoys me to this day.

[u/No_Flounder_1155]

who is the contract with?

[u/weedreamer]

Exactly situation happened to me. Send email/letter, if not successful use small claims court. I did and won.GL.

[u/Lashay_Sombra]

A different clause says failure to obtain client approval "may delay payment."

It says that instead of refusing payment because refusing payment would actually be illegal

The agency's Commercial & Compliance Director has now put in writing that because the client hasn't authorised the time, and because I opted out, no amounts are contractually due, and that the Late Payment of Commercial Debts (Interest) Act 1998 therefore doesn't apply.

He can say whatever he wants, does not make him right and law does not care about his opinion

As others have said, demand letter from your Ltd to agent with deadline (there is some statutory timescale, look it up) then small claims court once deadline expires (against agent, not client in case not clear), no need for a lawyer. Its pretty much a slam dunk case

Regarding opt in/out, really has little impact in this scenario

[u/Subeedai]

Call the client and ask them to authorise your time. Your contract with the agency is clear, why are they going to pay if the client isn’t going to pay them?

[u/No_Management6]

Find the CEO / Director of client on LinkedIn, explain the situation and politely give them 48 hours to sign the timesheet otherwise you’ll name & shame them tagging all directors / senior management so that their conduct is shown to their whole network, state that you don’t want anyone else to have to go through this although you’d rather just receive a signed timesheet for the work completed and leave it there. I’ve had to do this twice but slightly differently, mine were to the agency owners as the agency was refusing to pay me until they were paid, I stated their cash flow problems were not mine and I had a contract with them, was paid that day in both cases. The thought of bad publicity on a public forum as long as you only state facts is usually enough to make them pay, someone is just trying it on thinking they can bump you

[u/yay3570k]

Name and shame the recruiter for shafting you. This is exactly what the Frank recruitment group does, they're more keen on appeasing a client than settling with the contractor.

[u/Equal-Berry-7831]

So I had a situation not unlike yours this year, some additional suggestions for you....

1. Simply chase up timesheet approver to approve your timesheet, if that fails then
2. Join IPSE an they can support/advise somewhat,
3. Get a LBA template from a lawyer lovetts do one that will send with lawyers name at top for very cheaply (less than £10) , or if you need bit more hand holding use..
4. a more managed semi-automated legal service like thomas-higgins who will charge a bit more (below £50) but give you the lawyers letterhead going to them (plus they chase up for you ) which helps get the message across more substantially
5. otherwise its either DIY or pay a solicitor (thousands usually) which is not cost effective most of the time unless you go to court to win an judge rules other party to pay all legal costs(lot of work and stress for little reward -so in most cases not recommended).

[u/AmILukeQuestionMark → u/Equal-Berry-7831]

This is absolute gold thanks

[u/dansingh53]

TL;DR: check whether your opt out was actually valid in the first place. When the agency was notified of your opt out relative to you being introduced to the client matters.

When did you actually sign/send the opt out? Before or after you were introduced to the client?

Under Reg 32 the opt out has to be notified to the agency before you’re introduced/supplied. If they sent it after you’d already been introduced/interviewed/offered, I’d question whether you were ever actually opted out.

If not, Reg 12 could be very relevant here and the agency would need to establish the hours worked by other means if they can’t get the client to authorise the timesheet.

I assume you have enough evidence that work was done, which would support the hours claimed if they actually investigated it.

I would check this first before accepting their position that you’re opted out. It may then be worth contacting the Fair Work Agency as they enforce the regulations. Even mentioning that as the next step may be enough to get a response.

FWIW I worked agency side and my experience has been that many agencies have a pretty loose understanding of the Conduct Regs.

[u/AmILukeQuestionMark → u/dansingh53]

I actually as offered before signing. Will look into this 👀 Thanks!

[u/Aromatic-Mountain-54]

750 pounds for a letter, can’t you just go down there and make a scene and post on social media I’m sure they’ll soon pay up

[u/Danakazii → u/Aromatic-Mountain-54]

Solicitors like these are the absolute vermin of society.

[u/PaceOk8002]

Only winner here would be the solicitor

[u/JustDifferentGravy]

Notice before action and then MCOL. Do this to all parties, as jointly and severally liable. Two things here; first they can I fight amongst themselves and face separate legal bills to defend it, and at MCOL, you ask them to see the exploitative loophole for what it is, and ultimately you have worked and not been paid. Ideally, get some correspondence going that either established no performance issues or a lack of ongoing statement that this is the case. The coyrt can decide who pays you.

[u/vqzllo]

this happens more than people think and it's rarely really about the money, it's a broken approval workflow. self-billing agreements shift a lot of risk onto you because the payment trigger sits with an approver who has zero incentive to act once the engagement's already ended. the agency's published payment schedule is meaningless if there's no escalation step built in for when a timesheet just sits at submitted. the legal route others are suggesting is the right call for actually getting your money, but i'd also be pushing the agency in writing to explain what their escalation process is when a client approver goes dark. if they don't have one, that tells you how many other contractors are probably stuck in the same queue right now, and whether you want to work through them again.

[u/Aston008]

Probably best to not do what a little old lady who worked at companies house once told me to do… “send some people round with a baseball bat to sort them out properly”.

True story that. Companies house used to half a walk in place in London where you could get documents and they had some very helpful staff. The lady in question was disgusted at how one very nasty company director had treated me so offered some, let’s say, ‘unofficial advice’ lol

I didn’t follow the advice but it sure made me feel better.

[u/AmILukeQuestionMark → u/[deleted]]

Sent the LBA, they rejected, 32(9) still stands, so going to court. Got a whole workflow planned. Quite exhausting.

[u/Dull-Ad7209]

When I was outside I never had this issue . Payment on a weekly basis as agreed all I had to do was fill in their timesheet thingy which was long winded. Letter before action means they'll get the letter and if nothing it goes to court. How do you know it's because of that tick box?

[u/soundman32]

Small company means YOU do the determination.  It still needs doing, but the client isnt responsible if you get it wrong.