Freelancers facing non-payment can take steps to recover their fees and protect themselves from future risks.
Solutions for Freelancers Facing Payment Issues
If you’re a freelancer and your client refuses to pay despite you having delivered your work, there are steps you can take to recover the payment.
The Visual, Audio, Creative Content Professionals Association (Vicpa), a group advocating for freelancers, recommends that freelancers file a claim at the Small Claims Tribunal (SCT) if their client is based in Singapore. The SCT offers a simpler and more affordable option compared to a lawsuit.
If the claim is for up to $5,000, the filing fee is as low as $10, with the cost rising for higher claims or those made on behalf of a registered business. The SCT has a $20,000 limit for claims by registered businesses, which can be raised to $30,000 if both parties agree. Claims must be filed within two years of being owed the money.
However, if the client is located overseas or is bankrupt, filing a small claim is not an option, and legal advice is necessary.
Legal Action and Alternatives
If you wish to sue your client but are worried about high legal fees, one option is to join forces with other freelancers owed payment by the same client. By getting common legal counsel, you can reduce costs.
If you’re working alone, you can seek pro bono or low-cost legal representation from the Law Society or the Community Justice Centre. Freelancers can also become members of Vicpa, which provides access to NTUC’s legal clinics for assistance with work or contract disputes.
Preventive Measures for Freelancers
To avoid similar situations in the future, Vicpa encourages freelancers to do their due diligence before accepting a job. Check the prospective client’s business profile on the Accounting and Corporate Regulatory Authority’s (Acra) website and ask for feedback from others who have worked with the client.
Additionally, written contracts are essential. If a client refuses to provide written terms of service, it’s a red flag. Freelancers should also be aware that authorities may not always help in recovering payments unless there is clear evidence of fraud or criminal wrongdoing.
Key Takeaways:
Small Claims Tribunal offers a cost-effective way to recover payments within Singapore.
Legal support is available for freelancers through organizations like Vicpa and the Law Society.
Due diligence and written contracts are essential for protecting freelancers against payment issues.
