Term for When a Company Fails to Pay Contractors or Military Personnel
When a company or government entity fails to pay its contractors or military personnel, the situation is generally described as non‑payment or non‑payment of obligations. In government contracting, this can be referred to by several related terms depending on the context:
Non‑payment – A broad term meaning the failure to make required payments on time or in full .
Contract default – If the non‑payment occurs under a legally binding contract, it can constitute a breach or default, allowing the other party to seek remedies such as termination, damages, or recovery of unpaid amounts .
Delinquency – Often used in financial or payroll contexts to describe overdue payments.
Back pay – If the delay is due to a past‑due obligation, the unpaid amount may be called back pay.
Wage or compensation arrears – Common in labor or military contexts when personnel are owed wages or benefits.
In government contracting, the term “non‑payment” is often used in contract performance reports and contract administration to document when a contractor has not received timely or full payment for work performed . If the non‑payment involves military personnel, it may also be described as non‑payment of wages or non‑payment of military compensation.
If the non‑payment is systemic or widespread, it can be labeled a contracting default or payment default in procurement records. In legal or labor law terms, it may be referred to as breach of contract or failure to pay wages.
Key takeaway:
The most common and neutral term is non‑payment, but the exact phrase depends on whether it’s a general business, government, or military context, and whether it’s part of a contract or a labor agreement.
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