It is a Government requirement that all central Government Departments [including the Department of Rural and Community Development (DRCD)], the Health Service Executive, the local authorities and all other public sector bodies (excluding commercial Semi-State bodies) pay their suppliers within 15 calendar days of receipt of a valid invoice.
This arrangement does not alter contractual relationships and does not change the legal position in relation to late payments.
The Department of Business Enterprise and Innovation collates and publishes the composite quarterly returns by Central Government Departments of payments made to their suppliers within 15 days.
Since 2009, Central Government Departments have been improving their respective payment times so as to assist the cash flow of businesses. Departments are now obliged to pay their suppliers within 15 days of receipt of a valid invoice.
Subsequently, and as part of the commitments in the EU/IMF Programme for Ireland, the 15 day prompt payment requirement was extended beyond Central Government Departments and rolled out to the Health Service Executive, the Local Authorities, State Agencies and all other Public Sector Bodies (excluding Commercial Semi-State bodies), in respect of valid invoices received, on or after, 1 July 2011.
As part of the 15 day prompt payment requirement, Government Departments and relevant public sector bodies are required to publish on their respective websites, their quarterly payment performance reports. Government Departments are also required to publish the quarterly composite reports covering the bodies under their aegis.
Prompt Payment Official Notice
Small Businesses can attach an Official Notice of the 15 day prompt payment requirement to relevant invoices. Small businesses themselves should refer instances of non-adherence to the relevant Government Department.
|Amount of Late Payment (i.e. Invoice Value)||Compensation Amount (€)|
|Not exceeding €1000||40.00|
|Exceeding €1000 but not exceeding €10,000||70.00|
Compensation for recovery costs should be paid automatically to the supplier without the necessity of a reminder. The Regulations provide that the following “Flat Rates” should be used:
In addition to the compensation for recovery costs set out in the above Schedule, the 2012 Regulations also entitles the supplier to obtain further recovery costs, for example, the cost of using a Solicitor or employing a debt collection agency.
Below are Quarterly Prompt payment reports for: