Can a UK-based video production company extend payment beyond a freelancer’s invoice deadline?

Question from Morw, Can a UK-based video production company extend payment beyond a freelancer’s invoice deadline?

Answer from AI:

In the United Kingdom, the default payment period for business-to-business transactions is 30 days, as established by the Late Payment of Commercial Debts (Interest) Act 1998. However, it is essential to understand how this default period interacts with the specific terms set by a freelancer in their invoice and whether the freelancer can withhold their work until payment is made.

Payment period and invoice deadlines

If your contract with the freelancer does not specify a payment period, the default 30-day period will apply. However, if the freelancer’s invoice states a payment deadline within two weeks, this may be considered a new agreement on payment terms. In such cases, it is advisable to discuss and clarify the payment terms with the freelancer to avoid potential disputes.

Withholding access to work

Regarding the freelancer’s right to withhold access to their work, such as sound files or video rushes, this depends on the terms of your contract with them. If the contract does not explicitly state that the freelancer must provide access to their work before receiving payment, they may have the right to withhold access until payment is made.

Recommendations

To avoid potential disputes and ensure a smooth working relationship with freelancers, consider the following steps:

1. Clarify payment terms in the contract: Specify the payment period and any other relevant terms in the contract to avoid misunderstandings and reliance on the default 30-day period.
2. Communicate with the freelancer: If the invoice deadline differs from the agreed-upon payment period, discuss the matter with the freelancer to reach a mutual understanding and avoid disputes.
3. Consult a legal professional: If you are unsure about your rights and obligations regarding payment terms and access to work, seek personalized advice from a legal professional.

In conclusion, while the default 30-day payment period may apply in the absence of a specified payment term in your contract, it is essential to clarify and agree on payment terms with freelancers to avoid potential disputes and ensure a smooth working relationship.