Late payment for freelance professionals

Subject: Late payment for freelance professionals

Late payment is a harmful and unfair practice which continues to exist within the single market and has a negative effect on the development of all businesses. It is widespread primarily among SMEs but also involves individual professionals who provide cross-border services, in particular in the translation sector. In accordance with Directive 2011/7/EU on combating late payment in commercial transactions, the time limit for payment should not exceed 30 or 60 days.

However, we have been receiving numerous reports and requests for support from freelance professionals and smaller operators, who often find it impossible to recover money owed them, for fear of damaging good business relationships or owing to a lack of resources.

In view of the above:

1. Will the Commission make arrangements for studies on and research into such cases involving individual professionals providing cross-border services?

2. What steps will it take to improve the timely and effective implementation of both Directive 2011/7/EU and national legislation on late payments, and to give tangible responses with regard to this unfair practice that is adversely affecting thousands of freelancers and businesses in Europe?

Answer given by Mr Breton on behalf of the European Commission

(30 April 2020)

The study on the effectiveness of national measures to combat late payment in Business to Business (B2B) transactions (1) has confirmed that unfair payment practices and clauses relating to payments are still widespread in the EU. Some of these practices also affect ‘business services’, a sector that includes translations provided by freelancers.

The Commission has put in place a strict enforcement policy of Directive 2011/7/EU to combat late payment in commercial transactions, both between public authorities and businesses, and between businesses. To do so, the Commission launched infringement procedures, and maintains an active dialogue with the Member States and with businesses. Moreover, in its SME Strategy (2) the Commission has announced a set of actions aimed at providing SMEs with quick dispute resolution systems to claim payments, interest and compensation.

In addition, there are a number of EU regulations facilitating cross-border debt recovery, like Regulation (EC) 861/2007 establishing a European Small Claims Procedure (3) or Regulation (EC)1869/2006 creating a European Order for Payment procedure (4). The solutions provided by these instruments are cost-effective and easy to use even without the assistance of a lawyer.

⋅1∙ https://publications.europa.eu/en/publication-detail/-/publication/c8b7391b-9b80-11e8-a408-01aa75ed71a1

⋅2∙ https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2020%3A103%3AFIN

⋅3∙ https://europa.eu/youreurope/business/dealing-with-customers/solving-disputes/european-small-claims-

procedure/index_en.htm and https://op.europa.eu/en/publication-detail/-/publication/3f507938-7bf7-4b22-a61b-9bac11703581/language-en/format- PDF/source-search

⋅4∙ https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32006R1896 and https://e-

justice.europa.eu/content_order_for_payment_procedures-41-en.do