Fair Payment Code: definition and example
A voluntary UK code under which businesses commit to paying their suppliers fairly and on time.
By Jack Butler-Kettle · Updated
Guidance for England and Wales. Check the contract, amendments and facts that apply to your job.
What it means in practice
Read this alongside the Fair Payment Code.
The Fair Payment Code is a voluntary award scheme administered by the Office of the Small Business Commissioner. Membership is a useful point to investigate, but it does not replace the payment terms of your subcontract or establish that a particular payment will arrive on time.
Check the current award information and your agreed dates separately. Late payment prevention concentrates on the application, notice and follow-up routines within your control.
Worked example
The facts
A subcontractor sees that a prospective customer displays a payment-code award.
What happens
It checks the published award information and asks about the proposed payment process.
It still reviews the subcontract timetable and the documents needed for each application.
What this shows
A voluntary commitment informs the assessment of a customer; it is not a substitute for workable payment terms.
Sources
- The Fair Payment Code. Office of the Small Business Commissioner.