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umbrella company altering contract to avoid notice payment

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    umbrella company altering contract to avoid notice payment

    I have a date with the umbrella company at an employment tribunal in July. My dispute with them is that they changed the wording of my original contract to avoid paying me 3 weeks' notice.

    I took a contract with a company through the Agency and decided to go with the umbrella company rather than my own limted company. So the first thing to establish is that my contract was with the umbrella company. This contract stated that I would receive 4 weeks' notice.

    Three weeks before my contract was due to end, the Agency terminated the contract early because the company I was working for were not paying the invoices to the Agency.

    My claim is that the contract I had signed with the umbrella company clearly stated that I would be given 4 weeks’ notice unless Company A, the Client I was working for, terminated the Assignment for whatever reason. This did not occur as it was the Agency not Company A who terminated the contract early. The Assignment Schedule I electronically accepted for this contract through the umbrella company website clearly stated this.

    The following statements, extracted from the Assignment Schedule that I signed clearly stated this:

    Client: Company A
    Customer: the Agency

    The notice period stated that I would be given 4 weeks by the umbrella company unless:
    * Please note that, notwithstanding the Company Assignment Notice Period, the Company reserves the right to terminate an Assignment with immediate effect if (a) you are in breach of any provision of your contract of employment with the Company or the terms of the Assignment, (b) are guilty of misconduct or neglect of duty; (c) the Client does not confirm, or cancels the Assignment prior to start of the Assignment; (d) the Client terminates the Assignment for whatever reason and whether or not any formal written notice of termination is given; or (e) in the reasonable opinion of the Company you have not successfully completed the probationary period applicable to any Assignment. Termination of an Assignment will not affect the continuity of your employment with the Company.

    I spoke to the umbrella company stating that I should be given 4 weeks' notice, but they pointed me to the above statement, section d):
    d) the Client terminates the Assignment for whatever reason and whether or not any formal written notice of termination is given

    I responded by stating that the Client is stated as Company A who did not give me immediate notice, it was the Agent. The umbrella company representative then said he would look into it. 2 days later I received a phone call from the umbrella company asking me to look at the contract again. To my shock it had been changed. It now stated:

    Client: the Agency
    Customer: Company A

    This wording has been deliberately changed to avoid paying my notice pay.

    I had previously saved the original contract by doing a Save As from the umbrella company website, so I have both copies. However, the umbrella company are denying they changed the contract and are disputing it. The say they have the application logs to prove they hadn't changed anything. However, I was once a techie and know there are other ways to change data such as direct to the database.

    To me, it is outrageous that the umbrella company treat contractors this way and actually change contractual details to get out of paying a few grand. As you can imagine I am infuriated with this situation and regret ever using an umbrella. Needless to say I am now operate as a limited company.

    I would very much appreciate it if anyone out there has had a similar experience, especially with the umbrella company, or can assist me in winning my case at the Employment Tribunal.

    #2
    Never ceases to amaze me people joining umbrella's instead of their own ltd co.
    I couldn't give two fornicators! Yes, really!

    Comment


      #3
      Originally posted by BolshieBastard View Post
      Never ceases to amaze me people joining umbrella's instead of their own ltd co.
      you live up to your name dont you! its an easy option for beginners and short contracts...
      I didn't say it was your ******* fault, I said I was blaming you!

      Comment


        #4
        Originally posted by sarlscharisma View Post
        ... The say they have the application logs to prove they hadn't changed anything.
        Hmm. You don't think they could be lying do you?

        Originally posted by sarlscharisma View Post
        ... or can assist me in winning my case at the Employment Tribunal.
        Get a lawyer.

        And consider whether three weeks pay is worth the hassle. While the brolly may have committed fraud by retrospectively changing the contract, are you sure enough of your ground to publicly state it? Are you confident that if they sued you for slander/libel that you'd be able to defend it?

        Fortunately, in court, you have privilege, which allows you to make any accusation without it being slanderous. Be careful outside of court though.

        And next time - go ltd.
        Down with racism. Long live miscegenation!

        Comment


          #5
          You are going to struggle to get any money out of the umbrella company for the pure fact that they haven't received any money from the agency.

          The fact is that they made a mistake when creating their contract.

          Name and shame!
          l l l http://www.thewantedfans.com

          Comment


            #6
            I am assuming you have something signed by the brolly in the first place, with these t&c's in it?


            Definitely name and shame and then we can advise others not to go near them.

            I reckon we should have a brolly \ agency blacklist!!!!!
            "If you can read this, thank a teacher....and since it's in English, thank a soldier"

            Comment


              #7
              They are a "big" umbrella company, who many will know and love.

              What worries me is all their contracts are electronic and they refuse to send out physical copies or do signatures. The electronic contract is a waste of time and will learn from this one - never again. My advice to you all get a proper signed contract, otherwise you are wide open. I requested my contract a couple of days ago, but they refused to send me it and have closed my online account with them so I can't access it.

              The only proof i have is that i saved it on my desktop. But taking them to an employment tribunal only cost me time and 1/2 day out so it will make me feel better even if I come out with nothing. I just want the contractoor community to be aware of this situation.

              Comment


                #8
                Further developments with this case

                This gets a bit more interesting now. The BIG umbrella have now provided me with a settlement figure which is pay for the 3 weeks' notice, but at the minimum wage rather than my contractor rate. I don't know if they have a loophole but the contract states I am paid as follows:
                basic pay/day @ min. wage
                bonus @ £x/day which in effect makes up my rate when added to basic pay.

                I am not settling on this figure and will continue to action this via the employment tribunal. So as ever, any guidance on this matter would be appreciated.

                Comment


                  #9
                  Originally posted by sarlscharisma View Post
                  This gets a bit more interesting now. The BIG umbrella have now provided me with a settlement figure which is pay for the 3 weeks' notice, but at the minimum wage rather than my contractor rate. I don't know if they have a loophole but the contract states I am paid as follows:
                  basic pay/day @ min. wage
                  bonus @ £x/day which in effect makes up my rate when added to basic pay.

                  I am not settling on this figure and will continue to action this via the employment tribunal. So as ever, any guidance on this matter would be appreciated.
                  I do have some sympathy for the brolly. However the fact is that the original contract allows you 4 weeks notice. They have not been paid by the client, but that is their problem. Their business model should cope with that.

                  In my view you are entitled to the 4 weeks payment. What you don't show is the full contract, and I rather suspect that the tribunal won't award you more that your basic pay - why should you get your "bonus" when you haven't actually done the work which is supposed to guarantee it. But good luck anyway. At the least you might cause some further clarity.

                  Comment


                    #10
                    Originally posted by sarlscharisma View Post
                    This gets a bit more interesting now. The BIG umbrella have now provided me with a settlement figure which is pay for the 3 weeks' notice, but at the minimum wage rather than my contractor rate. I don't know if they have a loophole but the contract states I am paid as follows:
                    basic pay/day @ min. wage
                    bonus @ £x/day which in effect makes up my rate when added to basic pay.
                    Didn't that ring alarm bells?

                    Comment

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