It wouldnt happen to an employee! Says 2Binterface
It wouldn’t happen to an employee! Says 2Binterface
Late payment & lsquo;trend’ is ludicrous.
Larger companies are crippling SMEs by paying late, and insisting on unfeasibly long payment terms with & lsquo;ludicrous’ extras such as imposed discounts, says UK entrepreneur, Beatrice Bartlay.
Bartlay argued that if the same terms were imposed upon these firms’ employees, it would bring companies to their knees in moments.
Bartlay, Managing Director of specialist staffing firm 2BInterface, set the scene: “It’s the last working day of the month and you’re anxiously waiting for your wage slip after a hard month’s slog at your desk. Your FD comes along and says that you will get paid, but not for 30 more days and – by the way – they will be taking two per cent from your salary for the privilege of working for their company and having it on your CV. After all, you should be grateful you’re getting paid in the first place, and oh, didn’t you check your contract?
“The employee wouldn’t stand for it! The unions would have a field day and hundreds of companies cease trading with furious employees who can’t pay their mortgages,” she said.
Bartlay continued: “So what’s the difference between this and the daily battle SMEs in this country have with companies that fail to pay on time, with some of them even insisting on cut prices just for the & lsquo;honour’ of working with them?
The Department for Business, Innovations and Skills announced amended late payment legislation in mid-March 2013, but Bartlay says it won’t stop larger companies flexing their big branded muscles when it comes to negotiating terms at contract stage. The legislation states that 60 days is the maximum timeframe acceptable to pay suppliers.
Bartlay concluded: “60 days is unacceptable to many owner managers. After all, I can guarantee that if they didn’t pay their tax on time they would see the backhand of the taxman. We have to call for a tighter 30 days as the industry norm for payment periods. The first few years for an SME are a telling one, and they’ll only survive on a decent cash flow. Why hinder what is great about Britain with the masses of innovation and bright young start-ups with something as simple as not being paid for what was delivered?”