How UK Freelancers Are Managing Nonpaying Clients
In today's economy, many individuals are not directly employed by the companies they work for. Instead, they receive a contract to do a piece of work or a project that has a concrete finish. This is the case for workers in the USA, UK and many other places. Lately, freelancers in the UK have been dealing with clients who either pay late or skip out on paying at all. This leaves the freelancer in a bind, having done the work with no payment or a delayed payment that makes it difficult for them to pay their bills and put food on the table.
Some freelancers have gone so far as to begin and circulate a petition to take to the UK's Parliament. The petition is a sort of unionization of the freelancers, and it would penalize employers who do not pay on time when the work is delivered. This would benefit the freelancers a great deal.
Some people think a petition is unnecessary. They argue that individual freelancers should just go and get a lawyer when a client doesn't pay. The reality for many freelancers is that many of their jobs have small enough contract that paying a lawyer to enforce the payment would not make financial sense. Employers know this, which is likely why many of them delay paying or don't pay for the work they receive from the freelancer.
There are a few laws already on the books in the UK that could help freelancers, but the freelancers do need to be ready to take the client to court if they do not receive payment. One of those laws allows the freelancer to charge an 8 percent monthly interest rate for an overdue payment. It is the freelancer's responsibility to update the client with the new total.
A strategy that many freelancers use is to use a cover letter or contract with an initially higher rate, stating that there will be an X percent discount for full payment within Y days or weeks. Doing it this way gets the freelancer their money in a shorter length of time. For more information click here https://petition.parliament.uk/petitions/228079.