Agencies and monthly salaries

There is something that i don't quite understand.
1. The teacher has a contract with the agency.
2. The contract states that the teacher gets XXX B every month.
3. The contract also states that the teachers salary gets paid on a given date.
4. The agency has a contract with the school.
5. The school pays the agency every month.
6. Why is it when the school does not pay the agency on time the teacher does not get his salary as per contract?
7. For an agency to state that it has financial problems is not good enough and should not be in business.
8. Is the agency not subject to an audit on a yearly bases?
9. Does the agency not have to submit income tax returns?
10. Does the agency not have to deduct tax every month from the employees?
11. Or is an agency above the law?????

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