Establish penalties against companies for systematic late payment of invoices

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Establish penalties against companies for systematic late payment of invoices

Petition Details

Freelancers make up 15% of the UK workforce, yet there has been little change in legislation to support this shift. In particular the lack of appropriate legislation around payment terms gives freelancers little practical power to ensure terms are enforced - resulting in serious cash flow issues.

Additional Information

A small survey of freelancers (97 people) found that everyone had experienced late payment and 37.5% had to wait over 6 months to be paid - some people were never paid. Companies should simply not be allowed to operate like this.

Options currently available include taking a company to small claims court, which is costly & time consuming, and late payment fines which are an inadequate solution as again require the invoice to at some point be paid - and don't fix cash flow issues.

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