Presumably the recent case which found that holiday pay should take account of overtime, and bonus, etc is going to be problematic for some umbrellas? i know a few where formal pay is minimum wage, and everything else is bonus, and holiday pay is paid out as a percentage of formal pay? surely some contractors are going to be able to claim back more holiday pay? and rather upset the umbrellas margins?
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A contractor related thread in general???. Needs raising up!bloggoth
If everything isn't black and white, I say, 'Why the hell not?'
John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson) -
There are a bunch of rules that mean few will be able to claim anything they missed out on. Doing things retrospectively isn't fair.Comment
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Govermin, Goose, Gander, Gander, Goose.Comment
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Umbrella companies pay their employees from monies that are earnt by those employees. So i'd have thought that it didn't matter either way.
Sure you can claim overtime hours in holiday, or not. Either way, it's coming out of the same pocket.Contracting: more of the money, less of the sh1tComment
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I haven't read through the EAT yet but I believe that the decision is going to be appealed so this is not set in stone just yet. Either way it shouldn't make any difference to umbrella companies as an over-arching contract, structured correctly, should be split between living wage (rather than minimum wage as a margin taken from the amount would take the earnings below the threshold) at a specific number of hours plus a profit related (rather than performance related) bonus.Comment
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Yes, it is coming "out of the same pocket". i.e. from the fees generated by the contractor. So, going forwards the difference it makes is less regular pay, more holiday pay. Basically a zero sum game there.Originally posted by kingcook View Post
But, what about going backwards ??
It appears backdated claims may be made. Now, I know people (often) expect their brolly to pay out everything - er's NI, holiday pay, sick pay, smp, gap pay etc etc out of the 20 quid or whatever but this is unrealistic.
So, claim back 4 weeks holiday pay difference between real rate and minimum wage then there is only one place (initially) it is coming from. The brolly. And they don't really have it (at least have never accounted for it).
That could potentially kill a large number of brollys.
Those that can survive that with their finances will be in an awkward position. They will need to recoup that going forwards. That can only mean higher fees.Comment
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So, your belief is that the bonus you pay is not affected by the judgement and will not be included. Backdated claims could be hugely problematic for you (and unfairly so in my view) if this is not the case.Originally posted by LisaContractorUmbrella View PostComment
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As I said I haven't read through the case yet (planned for today - I'll report back) but it shouldn't - if it applies to bonuses as well then all the major banks will be closing down before usOriginally posted by ASB View Post
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Don't want to hijack this thread but anyone else think this overtime pay to be classed as standard (short and dirty summary) is a little bit stupid and retrospective payment of it is just ridiculous?'CUK forum personality of 2011 - Winner - Yes really!!!!
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