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IC Contract

August 19, 2020 01:30PM
I logged into a company I work for and they have a new IC contract up. I was reading it and it specifically states that IC must agree that if their client does not pay them, I would not hold the company liable. I am very uncomfortable signing that. Is this normal language I never noticed before ?
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August 19, 2020 03:08PM
But how could the MSC be liable to you for someone else's action or lack of action toward them? They would have the right to hold the client responsible and file suit or take some other action. You would just be sol.

OTOH, it might help MSC's who do not have large reserves to survive while they are waiting for due payment. In this scenario, it is one of your risks of doing business. If they do not have the money in reserve, they cannot pay you, even if a judgement is made or a settlement reached. Ouch. This is harsh. We need more information!

I hope that someone who has more specific knowledge can tell us if this is also a cost of doing business that counts as some sort of loss at tax time...

My garden in England is full of eating-out places, for heat waves, warm September evenings, or lunch on a chilly Christmas morning. (Mary Quant)


Edited 1 time(s). Last edit at 08/19/2020 03:09PM by Shop-et-al.
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August 19, 2020 03:12PM
My personal belief is that the company should have to pay me even if the client doesn't pay them. My contract is with the company. I am doing work for them.
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August 19, 2020 03:49PM
I do not disagree! That was well stated!

In a perfect world, all MSC's have enough money in reserve to pay their independent contractors, even if payment is due to them. In our covid and otherwise rattled world, some companies might not have enough money. And then each shopper should decide what they can afford to risk.

And this is why I want someone to tell us if there is any connection between non-payment and a business loss or some sort of tax benefit. If there is no benefit at tax time, no one should dare to accept any assignments and run the risk of total loss.

My garden in England is full of eating-out places, for heat waves, warm September evenings, or lunch on a chilly Christmas morning. (Mary Quant)
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August 20, 2020 09:00PM
@Shop-et-al wrote:

And this is why I want someone to tell us if there is any connection between non-payment and a business loss or some sort of tax benefit. If there is no benefit at tax time, no one should dare to accept any assignments and run the risk of total loss.

Yes, there would be a tax benefit in this case.

When you are required to make a purchase as part of a mystery shop, that is a business expense. Normally this would be offset by the MSC specifically reimbursing you for that expense, making the whole thing a wash so that neither the reimbursement nor the expense would be reported. If, however, the MSC does not reimburse you for whatever reason (shop rejected, MSC goes kaput, idiotic requirement in IC that they only have to pay if the client pays), then you would claim that required purchase as a business expense at tax time.

You cannot, however, claim the loss of the shop fee or the time it took you to do the shop in the first place.
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August 20, 2020 09:03PM
Have you seen this in a contract before ? I have worked for them for many years but there have been some changes this year - new platform, payment dates have decreased to once a month.
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August 20, 2020 09:12PM
I can't say I've ever seen it in a contract, but I tend to gloss over them at this point. That said, I do remember a few threads on Volition back in the day so I'm pretty sure it's been used by a few MSCs over the years. Such wording is what allows a MSC not to pay should they approve a shop but the client later rejects it for whatever reason, which ultimately means the client won't pay the MSC for that shop.
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August 21, 2020 03:13PM
All the more reason to search here and see what other shoppers have to say about any particular MSC. If they have a reputation for paying on time and in the amount stated, along with any reimbursement, I would have no problem signing the ICA. If, on the other hand, they have a reputation here by long-standing shoppers for not paying or dragging out the payments beyond their stated time in the ICA, then I would not shop that MSC nor sign any ICA from them. Lots of helpful info here on the Forum.
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August 21, 2020 05:33PM
If I do a shop for a company, and do it properly as contracted, I expect to be paid by the msc that assigned the shop to me. If I meet my contract obligations and the msc does not get paid, that is their business expense; not mine. If that ever happens to me, then I will do no more shops for that msc.

This happened with Stericycle several years ago. They did not pay me for a route of 6 convenience store shops I completed. They refused to reply to my attempts to contact them. I have not done a shop for them since. They remain on my blacklist to this day, and I will never have a nice thing to say about them. There are plenty of honest msc's to shop for.
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