Why it matters

Ask any freelancer or writer if they’ve always been paid on time and you’re likely to be met with a barrage of laughter. Late payment is endemic in the creative industries, not least because freelancers (and sometimes employers too) often don’t know their rights in relation to timely payment, or what they can do, by law, when those rights aren’t honoured.

It is of course better to avoid this uncomfortable and stressful situation, but the reality is it can happen for a myriad of reasons: the payer encounters financial difficulties, your invoice got lost, the accounting department is slow, there is a mistake in the amount paid to you, etc. Here are some tips to ensure you aren’t left waiting, or – in the worst cases – never paid at all.

Background and basic principles

In the UK, we actually have strong legislation to protect people from late payment (something that countries like the US do not, unfortunately, have); specifically, it is the Late Payment of Commercial Debts (Interest) Act 1998. This Act dictates that, if you are not paid within 30 days from your invoice, you are entitled to claim both a late payment fee and significant interest. To quote the act directly:

Once statutory interest begins to run in relation to a qualifying debt, the supplier shall be entitled to a fixed sum (in addition to the statutory interest on the debt).

(2) That sum shall be–
(a) for a debt less than £1,000, the sum of £40;
(b) for a debt of £1,000 or more, but less than £10,000, the sum of £70;
(c) for a debt of £10,000 or more, the sum of £100.

What this means is that, from 31 days from the date of an invoice, you can re-invoice with an additional late payment fee added (according to the above), and thereafter add daily interest at 8% above base rate – which is extremely high, as interest rates go! The calculation for interest is dependent on the current Bank of England Base Rate, so the Small Business Commissioner has a calculator, to make things a little easier for you. You can find that here. The intention of the law is to make it more expensive for the commissioner not to pay you than to take an overdraft so that you aren’t, in effect, acting as their lender.

Why this is important

Freelancers can be made to feel that they are being ‘difficult’ by applying late fees and interest to late invoices – and it’s legitimate to worry that it may annoy the person who has commissioned you to do the work. But be reassured that you have a right, in law to receive timely payment, and it can be incredibly helpful to speed up the process to remind the person who commissioned you that the law mandates timely payment.

However, if communication is not forthcoming, or the employer simply doesn’t intend to abide by the law, it is the employer who is being difficult. You can’t ask your landlord, electric company, childcare provider or mortgage lender to wait until someone has decided to pay you. Would a builder wait to be paid? Would a salaried employee be understanding if their pay slip was a month late? No. So why should authors be expected to?

Authors should not fear being blacklisted for standing up for their rights. If a publisher or employer does not believe you should be paid within the law, this reflects incredibly badly on them. Please contact us if you are treated poorly or experience unprofessional behaviour from employers within the publishing industry. Our advisory team will offer individual, confidential advice and support members on any issue. See also the commitment to professional behaviour in bookselling and publishing which all parties should abide by.

The truth is that knowing your rights and knowing the law relating to those rights does not make you look difficult; it makes you look professional. A third party is more likely to pay attention and make sure you are paid on time the next time you work together if they know that you are consistent and serious An author who waits months or years before chasing payment is less likely to be treated seriously and increases the risks of losing the payment once and for all: late invoices can be legitimately chased for up to 6 years but the publisher may have gone out of business by then!

Moreover, by applying these late fees, which are your legal right, you’re normalising the practice, so that the person who comes after you – a person who, perhaps, really cannot wait another seven or 10 days for payment to appear – may not feel so uncomfortable doing so. Applying late fees across the board is an act of solidarity with your author colleagues (and for that matter, all other freelancers).

But how can you put your case across in a way that doesn’t feel ‘difficult’? The Society of Authors can provide bespoke advice, and we have a range of resources to help in these situations.

Briefly: always be calm and professional. It’s a great idea to send a gentle reminder at, say, day 25 from invoicing, just to remind the employer that the legal payment period is coming to an end. If you have a good working relationship with an employer who has always paid you on time before, checking in after 30 days have passed just to see if there has been a human error or a legitimate reason for non-payment is also advised. After all, we are all human. If you aren’t paid, escalate your claim beyond the finance department to your editor or the company’s managing director.

If the company raises obstacles such as demanding extra paperwork, speak to us.

And consider carefully if you are asked to wait to help cashflow as this may be a sign that the company is in trouble and you may need to act quickly to ensure you are paid.

We campaign strongly on the CRA’s #PayTheCreator principles, and we encourage you to use them!

And in the worst-case scenario, when pay is not forthcoming after months and communication completely breaks down, you have options – like the Northern Ireland Small Claims process, the Scottish Small Claims Court’s Simple Procedure, or the County Court Small Claims Track in England and Wales – and we can support you to use these. Do contact us as we can support you in the process and have guides on how to make these claims.

Remember: if you are reluctant to do it for yourself, do it for the sake of the next person in line. Do it for the profession of writing, and all those within it.

We will work in solidarity with you and support you with every step.

Resources:

• Society of Authors, Guide to Chasing Payment (free for SoA members)
• Society of Authors, Dignity and Respect page
• Late commercial payments: charging interest and debt recovery: Interest on late commercial payments – GOV.UK (www.gov.uk)

Government guides:

• England and Wales
• Northern Ireland
• Scotland