My first client in video games was the same. They rarely paid their contractors on time (the payment was months late), or it wasn't the entire agreed sum. We kept sending in late payment notices to their finance guy, and they fired us all for being troublemakers. I believe I had a notice period of two weeks, but they fired me with one day's notice.
Suing them was out of the question. For me, as for others, it would have been international. The company was in Italy, and the contractors were all over Europe. We'd probably each spend over 10k euros on the proceedings and representation in Italian courts. And the company wasn't overdue by much more than that. Besides, even if we won and the court ruled our legal expenses were to be paid, we weren't sure the company was solvent enough. So no one sued.
I believe it was their modus operandi. The company continued firing their contractors when it got into arrears before a lawsuit made sense. Sometimes, it's just their business plan.
I agree with the article's author—no pay, no work. Before starting contract work, one should think about the line they won't cross regarding late payments. For me, it's when an invoice becomes overdue, and it's plainly a breach of contract. I will never again cross that line and keep working.
This dynamic is very important to realize, in personal relationships as well. When dealing with someone problematic, it might seem like the events are extraordinary. But usually they are extraordinary only for the impacted, not for those who cause it. It might be just a Tuesday for them (ignorance), or it might part of the plan itself (malice).
Indeed, in both cases, it's perfectly normal for the other person to do this! So attempts to bring attention to it will be fruitless. The "ignorant" person will see nothing out of place, and will be bothered by the to-them baseless accusation, and the "malicious" person will be threatened by the realization, so they will try to sweep it back under the rug.
I hate to say this, but this is quite common in Italy for smaller businesses (and most businesses in Italy are small). They have become accustomed to their courts being slow so that this is a negotiation tactic you often hear. A shame on such a nice country...
I can't imagine trying to keep working while there's no pay coming in. I know the industry is brutal, but I won't be able to work if I get evicted from my home. Especially as a contractor, you gotta look out for yourself. If they stop paying, I stop |providing services. The world wouldn't be any different towards me in that regard.
Suing them was out of the question. For me, as for others, it would have been international. The company was in Italy, and the contractors were all over Europe. We'd probably each spend over 10k euros on the proceedings and representation in Italian courts. And the company wasn't overdue by much more than that. Besides, even if we won and the court ruled our legal expenses were to be paid, we weren't sure the company was solvent enough. So no one sued.
I believe it was their modus operandi. The company continued firing their contractors when it got into arrears before a lawsuit made sense. Sometimes, it's just their business plan.
I agree with the article's author—no pay, no work. Before starting contract work, one should think about the line they won't cross regarding late payments. For me, it's when an invoice becomes overdue, and it's plainly a breach of contract. I will never again cross that line and keep working.