Agency hasnt paid but does umbrella company have to pay me?

[Billy67]

My agency is claiming cash flow problems - etc - I user an umbrella company (Parasol) - do Parasol have to pay me?

[MrsGoof]

what does your contract of Employment say

[boredsenseless]

My agency is claiming cash flow problems - etc - I user an umbrella company (Parasol) - do Parasol have to pay me?

usually no as they state that they only pay on receipt of funds. but as said check your contract

[Mailman]

Name and shame! If your agency is having cash flow problems thats a pretty good indication that you need to change agents!

I doubt you will see any of your money.

Mailman

[Denny]

If Parasol won't pay (and it's unlikely their contract with you stipulates otherwise) then you could consider issuing the agency with a Garnishee order if they owe you money. If they are going into receivership then you might have problems because their biggest creditors need to be taken care of first - that means the banks and other bigger suppliers. Contractors are usually way down on their list of priorities.

If you stayed opted in then you could just approach the agency directly and you should have a much easier time of getting your money back because payment doesn't depend on you having signed timesheets. If they refuse and you signed a contract that still said you needed signed timesheets, then you could threaten to go to the DTI who will act on your behalf to get the money back for you. If you opted out then you do need timesheets, usually and the DTI are unlikely to get involved and tell you to see a commercial lawyer to sort the matter out. However, you could still do the above if you are genuinely owed the money and they still won't pay you or make no indication that they will pay you.

The first step is to give the agency a realistic deadline to pay by issuing them with a Letter pending legal action notice. If they don't answer satisfactorily then consider the steps I've given you above.

[Bradley]

Nmw

If Parasol won't pay (and it's unlikely their contract with you stipulates otherwise) then you could consider issuing the agency with a Garnishee order if they owe you money.

Or contact the Revenue and tell them that your employer is refusing to pay the national minimum wage for work done or sue them for constructive dismissal - the point to both of these comments is that they are pretending to be your employer for tax purposes but doing that means that they do have responsibilities as your employer.

This sort of thing is why it's best to have your own company ...

[Denny]

Or contact the Revenue and tell them that your employer is refusing to pay the national minimum wage for work done or sue them for constructive dismissal - the point to both of these comments is that they are pretending to be your employer for tax purposes but doing that means that they do have responsibilities as your employer.

This sort of thing is why it's best to have your own company ...

I think they put a clause in their contract which disqualifies contractors for sueing for things like this. Their contract is not set up to act as a bona fide employer to employee company in any other way apart from acting as a payroll channel based on funds received from the agency otherwise the contract would stipulate things like holiday period allowed, sickness, grievance procedures etc. and would be too high risk for the brolly to operate on this basis.

[MrsGoof]

I think they put a clause in their contract which disqualifies contractors for sueing for things like this. Their contract is not set up to act as a bona fide employer to employee company in any other way apart from acting as a payroll channel based on funds received from the agency otherwise the contract would stipulate things like holiday period allowed, sickness, grievance procedures etc. and would be too high risk for the brolly to operate on this basis.

is this enforceable by the agency or would a judge go tell to to go forth and multiply

[Central-Scrutiniser]

is this enforceable by the agency or would a judge go tell to to go forth and multiply

I would tend to think that the Judge would enforce Stauatory Law irrespective of any clauses in the contract eg EU Working Time Directive for a starter which gaurantees Annual Leave Payment for all agency staff, this cannot be traded for payment etc

Very interesting Court Case looming here in this respect ....

[thequ1ck]

Some brolly companies e.g. Giant require an employee to opt-out
from the Working Time Directive in order for them to be covered by
IR35 insurance. This effectivley means that the brolly gets away
with lighter admin costs from the agency and you, the employee,
have waivered all of your employee rights away.

You should check with your brolly if you have opted out from this
agreement and if you have, find out when. If you opted out during
the course of your contract, it will not come into effect until the
start of your next contract.

I would tend to think that the Judge would enforce Stauatory Law irrespective of any clauses in the contract eg EU Working Time Directive for a starter which gaurantees Annual Leave Payment for all agency staff, this cannot be traded for payment etc

Very interesting Court Case looming here in this respect ....