Boss not paying on time

[john1277]

Hi everyone/ anyone who can help

I’m currently a sole trader working/ sub contracting to someone in Auckland. I am in the trades.

I say sub contracting but I don’t do any work for anybody else and only work for the same person, so technically by some standards in NZ I am an employee.

My current boss is having financial trouble at the moment and has not been paying me on time and sometimes it will be weeks before I get paid (3-4 weeks)

I’m just wondering what if any action I can take to do something about this?

I have a young family and can’t afford to just leave in the current times we are living in. I have bills and mouths to feed.

Everybody gets paid fortnightly but lately he has just been making random excuses and telling me he can’t pay me because of X Y Z reason.

I think in NZ there is a grey area between sole trader/ employee and as sole traders if we wear the uniform, only work for the one company and work a certain percentage of our time for the same company every week we are basically employees.

I’m kind of just trying to find a way to get my boss to pay me on time like everyone else so I can afford to live.

Any advise would be helpful.

Thanks

 

[cornelius8l]

@john1277 Find a new boss? Trades are always needed. I can't think of any ways to force them to pay up that would result in a good long-term working relationship.

 

[garyvasquez]

@john1277 If you’re a subby, you can’t do much.

You need to find a new gig.

 

[jamesbates]

@john1277

I have a young family and can’t afford to just leave in the current times we are living in. I have bills and mouths to feed.

It sounds more like you can't afford to stay in the current job. The answer isn't leaving or trying to make your employer pay on time. The answer is hoping your employer continues to pay you whilst looking for another job.

 

[john1277]

@jamesbates Yeah I’m just worried that if I tell him I’m leaving, he will just withhold the money he owes me. I almost need to find a new job, say I’m sick until I get paid for the time I’ve worked and then tell him I’m leaving.

 

[barbarossa]

@john1277 Yes, don't tell him you are leaving. You will go to the bottom of the pile of the people he owes money to.

Look for alternative work and take sick days in-between payment. It shouldn't be like this, but it is.

 

[cbonetwobe]

@john1277 The distinction between a subbie and an employee is that, if you wanted, you could take your boss to the employment relationships authority and have the relationship declared that of an employee. That's a big step to go through, more than most people would be willing to take. So... I'm going to stay with the assumption you don't do this. This unfortunately eliminates the grey area, putting you on the wrong side of the line.

I frequently have clients that refuse to pay until their client pays. It's annoying and against the contract I have with them, but ultimately I tend to let it slide. The risk is you're building up a big debt, and if your boss goes under then you likely will lose all that money. I'm in the lucky position that I have enough cash on hand to not really care about the payment date, just whether I'll get it.

The best suggestion I can give is to find a more reliable client/employer, that actually pays on time. Note that as a subcontractor you likely do not have to give any notice at all. Check your contract obviously, but most will allow you to work both jobs simultaneously, and/or cut with little to no notice.

 

[john1277]

@cbonetwobe Yeah we don’t really have a contract in place either so I don’t know how well it would go with employment relations. I guess I could talk to an employment relations lawyer. Mostly worried I will be owed 4 weeks which is around $10k for me and he just not pay me if I try to leave. Then I’d be having to pay for a lawyer to try get the money out of him

 

[cbonetwobe]

@john1277 Yes, that's my point.

I expect you would win. But it would be costly and time consuming for both of you.

So... It's just not in your interest to go there. And if you don't go there then you are implicitly agreeing with your boss's interpretation.

 

[charliek]

@john1277 What’s your agreement with them?
Look into the construction contracts act payment claim process if you want to have more security.

 

[john1277]

@charliek We don’t really have a contract, I kind of just provide labour/ run jobs for him. Starting to think I should get a contract signed between us with clear terms on when I will be paid and have a 5% late fee or something added into the agreement. But this will probably just cause bad blood

 

[tylerj13]

@john1277 Better yet, up your standard rates by and offer a discount for on time payment. Also 5% is nothing you're not in the finance industry, you don't have to be competitive, make it 10%