What to Do When a Client Does Not Pay You as a Support Worker
22 October 2026
If a client has not paid your invoice, start with a friendly reminder, check what you agreed and keep a record of every step. If that does not work, a letter of demand, mediation, a debt collection service or a small claims tribunal are the escalation options Australian small business guidance describes.
This guide is for independent support workers who have already sent an invoice and are still waiting. It sets out the steps in order, what to gather before you start and where to get advice. It is general information, not legal advice.
Before you chase: check the basics
Most unpaid invoices have a simple cause. Before you contact anyone, confirm four things so your follow-up is accurate and calm.
The invoice is correct: the right dates, hours, amount and the details of who it is addressed to.
It was actually received, at the right email or address.
You know what was agreed about payment, in a written agreement, messages or emails.
You know the due date, and it has genuinely passed.
business.gov.au says that with a written contract, the first step is to read it for payment conditions and debt recovery options. With a verbal agreement, you will need proof of what you both agreed, such as emails or texts. If your agreement is thin, setting up clear rates and agreements before the next job is the best protection.
Step 1: send a friendly reminder
A missed payment can be an oversight. business.gov.au suggests getting in touch by phone, email, letter or in person to give a friendly reminder, discuss a new payment date or negotiate a payment schedule if needed.
Keep the first message short and factual. Name the invoice, the amount, the date it was due and how to pay. Offer to resend it if that helps. A calm approach can resolve the issue without harming the working relationship, which matters if you want to keep the client.
Step 2: write it down
From your first reminder onward, keep a simple file. It will make every later step easier, and it is the same habit that good record keeping for support workers already builds.
The agreement, rates and any changes you both accepted.
Each invoice and the dates you sent it.
Notes of phone calls, written the same day.
Copies of emails, texts and letters, sent and received.
If you decide to take things further, business.gov.au says a court or tribunal will need to see evidence, and that notes made on the same day as the conversation are best.
Step 3: check whether there is a genuine dispute
Sometimes the client is not refusing to pay. They think something went wrong.
business.gov.au gives an example where an invoice went unpaid because of a misunderstanding. A phone call cleared it up and the invoice was paid without any formal dispute. Ask the client directly what they are unhappy about, and listen before you respond. The guide on how shift approvals work and how to avoid disputes covers the most common causes.
Step 4: send a letter of demand
If reminders get no response, business.gov.au says you can send a letter of demand once you have tried unsuccessfully to get your invoice paid. It states how much is owed, what for and the date the invoice must be paid by. It may also say you will consider legal action if the debt is not paid by that date.
Before sending one, business.gov.au suggests you check these points:
You have already tried friendlier options, such as a call or reminder letters.
Every detail is precisely accurate and could not be called false or misleading.
A late payment interest rate is included only if it was specified in the contract.
It mentions only action you are prepared to take.
It is polite, signed and dated, with copies of supporting documents attached.
The page also notes that a letter of demand could inflame a dispute, so weigh that against the need to recover the money. It recommends sending it by registered post with a signed proof of delivery card, and keeping that card as evidence. A lawyer can write one for you, and most law firms charge a set fee for a letter alone.
Step 5: get help to resolve the dispute
If contacting the client has not worked, business.gov.au points to the Australian Small Business and Family Enterprise Ombudsman, which has an online dispute support tool to find low-cost dispute resolution services. Mediation is a common option, where you and the client work with a mediator to reach an agreement.
It also says unions can represent independent contractors and help with disputes, and that business enterprise centres in every state and territory offer advice to small businesses. You can also ask your own adviser or a lawyer, and your state or territory law society can help you find one.
Step 6: debt collectors and legal action
If you cannot recover the money after reminders, negotiation and a letter of demand, business.gov.au says you might engage a debt collection service. It is a business that tries to recover the money for you for a fee.
Legal action is the last step. Depending on the amount, you can get legal advice or lodge a claim with a small claims tribunal. business.gov.au suggests asking whether the client is able to pay, whether a time limit applies to your claim and whether the time, cost and stress will be worth the outcome.
Sometimes the practical answer is different. business.gov.au notes that chasing payment takes time and money, and in some cases the best option is to stop chasing and write off the debt.
How to lower the risk next time
You cannot remove the risk completely, but clear terms help. business.gov.au says payment terms form part of a contract and should say which payment methods you accept, when you expect payment and how you collect overdue payments. Without clear terms, customers may pay late, dispute the payment or refuse to pay.
Agree the rate, the hours and how and when you will be paid before the first shift.
Put your payment terms on every invoice, and send invoices promptly.
Give clear item descriptions so the client can see what they are paying for.
Independent support workers on CareVicinity are independent contractors; CareVicinity does not employ or assign them as staff.
Frequently asked questions
What should I do first if a client does not pay me?
Check that your invoice is correct and was received, then send a friendly reminder with the invoice number, amount and due date. business.gov.au notes that a missed payment can simply be an oversight. Keep a note of the date and how you contacted them.
Can I stop working for a client who has not paid?
That depends on what you agreed with them, so read your agreement first. If it says nothing, or you are unsure where you stand, get advice from a lawyer, a union that covers you or a business enterprise centre before you decide. Do not make threats you are not prepared to follow through.
Do I need a lawyer to send a letter of demand?
No. business.gov.au provides a sample letter of demand you can adapt, and says you can write it yourself. It also notes that a lawyer can write one on their letterhead, often for a set fee, which can sometimes encourage a quicker payment.
What if the client says they do not owe me anything?
Then there is a dispute, and your records matter most. Go back to the agreement, your invoices and your notes. Consider mediation through a low-cost dispute resolution service before debt collectors or a tribunal, as business.gov.au suggests trying other options first.
Is going to court worth it for an unpaid invoice?
It can be, but business.gov.au describes going to court as expensive and time consuming, with an outcome you do not control. Small claims tribunals or divisions hear smaller amounts more cheaply and informally, so check the one in your state or territory.
Sources
business.gov.au, "What to do when you haven't been paid", https://business.gov.au/finance/financial-trouble/what-to-do-when-you-havent-been-paid, read 22 October 2026.
business.gov.au, "Write a letter of demand", https://business.gov.au/people/disputes/write-a-letter-of-demand, read 22 October 2026.
business.gov.au, "Payment terms", https://business.gov.au/finance/payments-and-invoicing/payment-terms, read 22 October 2026.
business.gov.au, "Debt collection services", https://business.gov.au/people/disputes/debt-collection-services, read 22 October 2026.
business.gov.au, "Prevent, manage and resolve disputes", https://business.gov.au/people/disputes/prevent-manage-and-resolve-disputes, read 22 October 2026.
business.gov.au, "When to go to court over a dispute", https://business.gov.au/people/disputes/when-to-go-to-court-over-a-dispute, read 22 October 2026.
business.gov.au, "How to invoice", https://business.gov.au/finance/payments-and-invoicing/how-to-invoice, read 22 October 2026.