Labour hire invoices unpaid for eight weeks? Stop the bleed first

Eight weeks unpaid is a warning sign

If you supply labour to construction sites, eight unpaid weeks is not just an accounting issue. Your wages have already gone out, the super clock keeps running and the client still has your money. The longer the account stays open, the more you risk funding their job with your cash instead of theirs.

That is why the first move is to stop new placements with that client unless payment is agreed in writing. Keeping workers on site while the debt grows can deepen the loss and weaken your leverage. A short pause is often the fastest way to stop the bleeding before you chase the balance.

Put the debt into a clean record

Once placements are paused, send a current statement and a written demand. Keep it factual. List the invoice numbers, the amount outstanding, any part payments and the date you want payment by. Do not bury the point in a long complaint. You want a record that can be used again later if the matter escalates.

Save every email, text message and file note that refers to payment. If the client has promised money on the phone, confirm that promise in writing. A clear paper trail matters because memory fades fast when people change roles, sites shut down or the story starts changing. Good records narrow the argument.

Source: Official guidance

Check whether a person stands behind it

Before you decide how hard to push, check your terms for a personal guarantee. Some labour hire arrangements are signed by a director or owner personally, especially where credit was set up quickly. If there is a guarantee, it may change who you pursue and how you frame the demand.

Do not assume the guarantee covers everything. Read the wording closely and note who signed it, what debts it covers and whether any limits apply. A guarantee is only useful if it is properly documented. This is one of the first checks worth making before you spend more time on the company alone.

When a statutory demand may fit

If the debt is undisputed and the client is a company, a statutory demand may be available. The Federal Court says the demand must relate to a debt due and payable of at least $4,000, and the company generally has 21 days to comply or apply to set it aside. Non-compliance can support a presumption of insolvency for winding-up purposes. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/corporations-guides/information-sheet-1?trk=public_post_comment-text&utm_source=openai))

That does not mean every overdue invoice should jump straight to that step. The same Federal Court guidance notes that a genuine dispute, an offsetting claim or a defect in the demand can matter. ASIC also tells creditors to check whether an external administrator has been appointed and to understand the company’s insolvency position before deciding what to do next. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/corporations-guides/information-sheet-1?trk=public_post_comment-text&utm_source=openai))

What to do today

Today, pull the file together before the story changes. Gather the contract, onboarding papers, signed timesheets, site records, invoices, the latest statement and every message about payment. Check that the legal entity on the paperwork matches the entity that owes the money. If the names do not line up, fix that first.

Then decide the next move from the facts, not frustration. Pause new placements, send the demand, check for a personal guarantee and ask whether the debt is clean enough for a formal company demand. If you want a practical view on labour hire debt recovery in construction, call CRP today. CRP coordinates independent qualified professionals. This is general information only and not legal advice.