• What Prompt Payment means to Suppliers and Service Providers:

Payment must be made to suppliers for the supply of goods and services:

• on or before the date on which payment is due under the terms of a written contract, or

* where there is no written contract or if the written contract does not specify a payment date, within 45 days of receipt of the invoice or delivery of the goods or services, whichever is the later.

• Prompt Payment by Contractors

A main contractor on a public sector contract must pass on to his / her suppliers or sub-contractors the benefits of being paid promptly.

• Payment of an ‘Interest Penalty’
• An interest penalty is payable on any amount outstanding if a payment is not made by the due date.
• The interest period runs from the date after the due date of payment up to the date on which payment is made.
• An interest payment cannot be ‘waived’ by the supplier.
• The interest payment is fixed by the Government and may be amended periodically.

Late Payment in Commercial Transactions Regulations 2002:

This law was implemented in Ireland by regulations which provide that penalty interest will become payable if payments for commercial transactions are not met within 30 days, unless otherwise specified in a contract or agreement. the regulations apply to commercial transactions in both the public and private sectors.

Including Government Departments, Commercial and Non-Commercial Semi-State Bodies, Health Boards, Local Authorities, etc. and their subsidiaries. Also, where contractors sub-contract or obtain goods or services from another person in respect of a public sector contract, they must comply with the payment of provisions of the Act.

For more information and the latest applicable late payment interest rate visit the Department of Enterprise, Trade and Employment.