Late Payment within the self-employed sector
This report looks at the prevalence of nonpayment and late payment in the sector.
Delays in payment from a client
Over half of freelancers (54%) reported that have experienced a delay in payment from a client in their self-employed career which closely aligns with our findings from 2020 where 56 per cent of freelancers had experienced late payment in their career. [5]
Of these, over a third (35%) reported that they have experienced a delay in payment from a client in the last 12 months.
On the other hand, 44 per cent reported that they had not experienced a delay in payment from a client during their career in self-employment.
In terms of quantifying the time that freelancers have had to wait beyond the agreed payment deadline for a payment from a client, two-fifths (40%) reported that that they had to wait between one week and a month beyond the payment deadline for a payment.
A further 28 per cent stated that they had to wait between a month and three months for payment whilst concerningly, 18 per cent of freelancers reported that they had to wait more than three months for payment.
In addition, one in ten freelancers (10%) stated that they were paid less than one week beyond the payment deadline.
Delays in payment from an agency
The majority of respondents (67%) reported that they had not experienced a delay in payment from an agency in their self-employed career. This is likely linked to the fact that agencies are legally required under Agency Workers Regulations 2010 to pay contractors on time after a 12-week minimum qualifying period. [6]
However, almost a third of freelancers (30%) reported that they had experienced a delay in payment from an agency in their self-employed career, with almost one in five (18%) of these stating that they had experienced a delay in payment from an agency in the last 12 months.
In terms of quantifying the time that freelancers have had to wait beyond the agree payment deadline for a payment from an agency, over a third (35%) stated that they had to wait between one month and three months beyond the agreed payment deadline for payment.
In addition, 23 per cent of respondents reported that they had to wait between one week and a month beyond the agreed payment deadline for payment from an agency whilst 18 per cent indicated that they had to wait over three months from the payment deadline.
A further 15 per cent reported that they had to wait for less than one week beyond the agreed payment deadline for payment from an agency.
Unpaid work
Concerningly, almost a third of freelancers (31%) reported that they have completed work and not been paid for it, with 16 per cent of these stating that they have completed unpaid work in the last 12 months.
The majority of freelancers (66%), however, reported that they have not experienced unpaid work in their self-employed career.
Appendix
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