Umbrella Agency gone into administration - 6 weeks unbilled work

[LondonSam]

Hi Guys,

I'm contracting at a medium-sized agency in London (around 100 staff) via an umbrella agency.

This is my second stint here as I was here for a few months before christmas. I found the work myself by contacting the company directly and only introduced the umbrella company as a means to process payments. They had nothing to do with organising the work.

I have been back here this time since the 25th Feb and due to finish on the 26th April. I have just been informed by the head of HR that they have received notice that my current umbrella company has gone into administration.

My current contract was setup by myself on the umbrella companys online system and approved by the development manager (online) at my current company. The daily rate is £350. Although I have submitted my timesheets online for Feb and March the company have not been invoiced as the timeseheets are awaiting approval from the development manager so essentially I have the performed about 6 weeks of yet to be invoiced work.

The head of HR proposed that because they dont have the security of paying the umbrella company they would instead pay me directly but only at a rate of £200 per day, not the £350 that I am supposed to be receiving.

This discussion took place verbally so I have subsequently requested a summary of their proposal and reasoning via email.

When I first started here I did a trial month @ £250 p/d, this had a signed physical contract. Afterwards they wanted to hire me for a number of months at my standard rate of £350.

A new contract was added online at £350 and approved by them. This was all invoiced and paid as expected.

When I started back again in Feb I created another contract online, again for £350 per day, which was also approved by the development manager. Like the one before this only exists online, there is no hardcopy.

I am not sure where I stand legally here, if you are able to offer any knowledgeable advice or suggestions that would really help me but please dont say something is a fact if you are unsure as it will only cloud the situation further for me.

One important question, if they paid me directly by cheque, is there any financially sensible way I could get this processed properly in terms of paying my taxes, NI etc.?

Thanks in advance

Sam

[ctdctd]

Join another umbrella and get them to invoice that?

Or form your own Ltd company and get them to invoice that.
May be a delay while you get a bank account opened.

Or get them to take you on as a temp and they sort Tax and NI for you.

HTH

[BolshieBastard]

Sorry to hear this but as I say, why introduce another link in the chain that puts your money at risk? Just say 'No!' to brollies.

I dont see how the client can 'offer' to pay you £200 a day when your contract is for £350. And WTF does the head of HR mean by not 'having the security of paying' the brollie!?

As the client hasnt been invoiced (AFAIA and IANAL), you havent lost the 'right' to the money. As I see it, you can either join another brollie (and have the remote chance they go tits up sometime in the future) or form your own ltd then, invoice the client for the full rate for the days worked.

If they paid you 'personally' yes, you'd be liable to PAYE and NI.

[cojak]

This may be a dumb question but have you spoken to the umbrella company? When did they go into administration? Have administrators been appointed?

I've looked in the London Gazette and couldn't find any company resembling an umbrella appointing an administrator back to 26th March.

At the moment you're getting this information second hand and it may not be accurate. I wouldn't trust HR as far as I could throw them.

Get the facts from the horses mouth and then decide/look for the next steps.

[bluetoaster]

Re: Umbrella Agency gone into administration - 6 weeks unbilled work

Have you called the brollie company to ask them directly?

[Zippy]

This sounds a bit fishy to me.

Why haven't your timesheets for Feb been approved?
Why are the client only offering £200 per day, when your contract says £350?

Make sure you gather any evidence you can that you actually performed the work for the client (e.g emails requesting/acknowledging work done, praising work done,any mails from HR about the umbrella problem too). Just in case they are trying to pull a fast one.

[Wanderer]

The head of HR proposed that because they dont have the security of paying the umbrella company they would instead pay me directly but only at a rate of £200 per day, not the £350 that I am supposed to be receiving.

WTF?!!?? No! !hey will pay the contracted rate. End of story.

Speak to your umbrella company and agency immediately and ask them if they are going into administration. There's a lot more to this that meets the eye, methinks.

You want to get a legal advisor on board straight away with this one.

[LisaContractorUmbrella]

IANAL but the contract would have been B2B between the umbrella company and the agency; the OP would have worked under a contract of employment which would have shown a salary of contract rate less umbrella co margin less an amount payable to HMR&C for employer's NI. That would be the reasoning for the lower rate if the agency paid direct - they would be taking on employer responsibilities. However, this would cease to be a problem if the OP finds another brolly or sets up Ltd Co. What would concern me more is the fact that the timesheets haven't been signed.

Are you opted in or out of the agency regs? Also, same as Cojak I have checked and checked and can't find anything about a brolly going into administration - OP - have you spoken to them or had written confirmation???

[Andy Hallett]

When an umbrella company goes pop word gets around the campfire very quickly. None on the radar, the OP can name the umbrella to give us all a better chance of helping.

[LisaContractorUmbrella]

When an umbrella company goes pop word gets around the campfire very quickly. None on the radar, the OP can name the umbrella to give us all a better chance of helping.

Strange though - we have now had a contractor contact us saying the same thing And yes the name from the OP would definitely help