The Government should increase the legal penalties that freelancers can charge to clients who pay late (past 30 days of project completion). These penalties should be equal to the initially agreed fee.
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We need payment laws to be revised with more support for freelancers. The existing legislation, the Late Payment of Commercial Debts (Interest) Act 1998, falls short in its effectiveness due to relatively minor penalties. At times we can be waiting to be paid for two months or longer. Even though Late payments are pursued through the small claims court that include the late payment fees, clients still refuse to pay the penalty charge. We believe that if the penalty charge for late payment is increased there will be more incentive for clients to pay on time.