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Client hiding behind umbrella, refusing to pay notice or outstanding unused holiday

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    Client hiding behind umbrella, refusing to pay notice or outstanding unused holiday

    I was recently employed by a UK company that paid all staff via an umbrella company. All staff had a contract of employment from the UK Ltd company, and in mine I was entitled to four weeks’ notice as well as 20 days paid holiday per year. The company was sold not long ago, and though the new owners promised to keep all staff employed, they did not. Two weeks after they had bought the company they called a meeting and terminated all contract. I was given a weeks’ notice and I was told that I would not be getting paid my untaken holiday pay because the new owners felt that while we have contracts of employment from the company they had purchased we were (they felt) employed not by the company they had bought but by the umbrella company and that because of this we were not entitled to any notice or for any compensation for unpaid holiday. Can this be true and legal? In my case, after the one weeks’ notice that they did pay, I am still owed almost £5k before taxes.

    The umbrella company has kept quiet and refuses to comment on the situation.

    Some people I have spoken to suggest that I use the ACAS service to dispute the payments, but ACAS themselves cannot tell me (and will not look at any contracts etc.) if I would be successful without me first having to raise the issue with the new company owners (which I am very keen to do only if I have a valid case).

    Is there any way I can find out if I do have a right to demand the unpaid money?

    Thank you!

    #2
    Help?

    Can anyone help with this?

    Comment


      #3
      Originally posted by dnbrinson View Post
      Can anyone help with this?
      CAB? A solicitor?

      Comment


        #4
        So to confirm, you are owed £5000 before taxes just for holiday and notice right!!

        They paid you for your actual work to date right!!!!

        Comment


          #5
          Was the Contract of Employment that you signed with the umbrella company or with the company that you were actually working for?
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          Comment


            #6
            Your dispute is with the umbrella company. You'll have to sue them. Legally the client company has no obligation. You have to now sue the Umbrella company, and they'll be forced to pay it, that's why they're quiet.

            Send a demand to your umbrella company and when you don't get anywhere take it up with ACAS or a soliciter and they will tackle your Umbrella co. I suspect they'll cough up, once they get a legal threatening letter.

            You can keep your dispute away from the new company owners. They're quite right, it isn't their problem (legally - though yes it is unfair).
            I'm alright Jack

            Comment


              #7
              Originally posted by LisaContractorUmbrella View Post
              Was the Contract of Employment that you signed with the umbrella company or with the company that you were actually working for?
              I have one from each of them...

              Comment


                #8
                ..

                Originally posted by dnbrinson View Post
                I have one from each of them...
                In that case, you may get more comphrensive advice if you can explain here which was responsible for what according to the two contracts that you have signed.

                This may be terribly complex especially where each party may have conflicting or duplicated clauses.

                Comment


                  #9
                  Are you sure you are due holiday pay ?

                  And it wasn't included in the rate ?

                  Other than that you will need to take legal action against both if you have exhausted all other routes.

                  Comment


                    #10
                    Thanks

                    Originally posted by blinko View Post
                    Are you sure you are due holiday pay ?

                    And it wasn't included in the rate ?

                    Other than that you will need to take legal action against both if you have exhausted all other routes.
                    My contract definitely states 20 days paid holiday per year at my normal daily rate.

                    I suspect I will need to take action against both - does anyone know of a time limit for doing this in?

                    Comment

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