The government has updated the Late Payment of Commercial Debts Regulations. The amending regulations amend the UK’s statutory framework to provide business representative bodies with broader power to challenge “grossly unfair” contractual terms and practices relating to late payment, on behalf of businesses.
They make clear that representative bodies may challenge grossly unfair terms and practices relating to payment dates or periods, the right to late payment interest or compensation for late payment. They extend the right to challenge such terms and practices to representatives of all businesses, not just small and medium enterprises, so representative bodies of any business can decide to challenge. Representative bodies will be able to decide whether to take action on behalf of individual businesses or groups of individual businesses, and also whether to take action on behalf of members or non-members. The updated regulations came into force on 26 February.