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Agency/umbrella pay delays due to new policy

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    Agency/umbrella pay delays due to new policy

    Has anyone else suddenly not received pay? I had to go inside and umbrella for latest role (it is definitely inside) but role was via an agency I’ve used before. Meant to be weekly pay as before, albeit lower rate and inside. But the market was dire and I needed work after being on bench for a while.
    First pay was fine and I was relieved, but second pay (the first full one) didn’t show up. Umbrella are saying no funds from agency, agency are saying no funds from client. Apparently they are no longer paying the contractor/umbrella until they get the client funds, so likely no longer weekly despite contract, as they invoice client monthly on 30 day payment.
    Their payroll said this is new policy in light of cash flow concerns over cv-19, but haven’t communicated that to me at all, nor umbrella.
    Now have no money at all, and all monthly payments come out of account over the coming three days which will bounce, and I’ll end up with loads of charges.
    Is this a new thing? Is it breach of contract? Trouble is now I’m employed by the umbrella who don’t give a toss - their response is we pay you hours after we get the money.
    Client said they’d pay me direct if need be and even outside (although not going that route as it was inside initially and would definitely fail CEST, plus umbrella contract says I can’t go to a client).

    #2
    Originally posted by koalah View Post
    Has anyone else suddenly not received pay? I had to go inside and umbrella for latest role (it is definitely inside) but role was via an agency I’ve used before. Meant to be weekly pay as before, albeit lower rate and inside. But the market was dire and I needed work after being on bench for a while.
    First pay was fine and I was relieved, but second pay (the first full one) didn’t show up. Umbrella are saying no funds from agency, agency are saying no funds from client. Apparently they are no longer paying the contractor/umbrella until they get the client funds, so likely no longer weekly despite contract, as they invoice client monthly on 30 day payment.
    Their payroll said this is new policy in light of cash flow concerns over cv-19, but haven’t communicated that to me at all, nor umbrella.
    Now have no money at all, and all monthly payments come out of account over the coming three days which will bounce, and I’ll end up with loads of charges.
    Is this a new thing? Is it breach of contract? Trouble is now I’m employed by the umbrella who don’t give a toss - their response is we pay you hours after we get the money.
    Client said they’d pay me direct if need be and even outside (although not going that route as it was inside initially and would definitely fail CEST, plus umbrella contract says I can’t go to a client).
    The Umbrella will really not care and the agency has finance issues (but so does everyone at the moment and I suspect the issue is that factoring (which agencies use to ensure they pay before receiving money) has completely shut down). So yes, they are in breach of contract but I'm not sure what you can do about it.
    1) a few days late once isn't much of an issue at the best of times
    2) these are not ordinary times let alone best of times..

    and yes that does mean you have a problem but it's not one that's going to be resolved quickly.

    My advice would be to speak to you bank about getting an overdraft and cancel all unnecessary direct debits.
    merely at clientco for the entertainment

    Comment


      #3
      Originally posted by eek View Post
      The Umbrella will really not care and the agency has finance issues (but so does everyone at the moment and I suspect the issue is that factoring (which agencies use to ensure they pay before receiving money) has completely shut down). So yes, they are in breach of contract but I'm not sure what you can do about it.
      1) a few days late once isn't much of an issue at the best of times
      2) these are not ordinary times let alone best of times..

      and yes that does mean you have a problem but it's not one that's going to be resolved quickly.

      My advice would be to speak to you bank about getting an overdraft and cancel all unnecessary direct debits.
      Thanks, but bank have said no, and I only have necessary DDs as was on bench for 4 months. So just rent and utilities.

      Comment


        #4
        Originally posted by koalah View Post
        Thanks, but bank have said no, and I only have necessary DDs as was on bench for 4 months. So just rent and utilities.
        Cancel both - you can't be chucked out in the next 3 months and no utility company is going to disconnect you - so get on the phone and explain what has happened and state you will pay them as soon as you get paid.

        Everyone is in the same boat so you really don't have anything to worry about here - a lot of people are going to be in the same situation come Tuesday when the pay their expected isn't there or is less than they hoped for.

        Outside of here I will be paying particular attention to any management going bankrupt on Monday / Tuesday (you pay wages, then screw everyone else up)..
        Last edited by eek; 28 March 2020, 10:41.
        merely at clientco for the entertainment

        Comment


          #5
          Umbrella only pay when they get paid - read your contract

          Client probably going belly up


          Sent from my iPhone using Contractor UK Forum

          Comment


            #6
            Originally posted by GhostofTarbera View Post
            Umbrella only pay when they get paid - read your contract

            Client probably going belly up


            Sent from my iPhone using Contractor UK Forum
            I know that, I’ve read contract. And no, client are fine, know that too (do the accounts).
            It’s the agency that are the weak link.

            Comment


              #7
              Originally posted by koalah View Post
              I know that, I’ve read contract. And no, client are fine, know that too (do the accounts).
              It’s the agency that are the weak link.
              As the Client said they'd pay you direct then take the cash from them. The umbrella / agency will get in a dust up but you'll be getting paid so I wouldn't worry about their feelings...

              Comment


                #8
                Agency will either a) have cash or b) factoring the invoice.

                The umbrella is your 'Employer', let them deal with it. Feel free to let end client know the score but it should sort itself out.

                The threat of calling them out on here should be enough to ensure payment, it should be your first call tomorrow.
                https://uk.linkedin.com/in/andyhallett

                Comment


                  #9
                  Originally posted by Andy Hallett View Post
                  Agency will either a) have cash or b) factoring the invoice.

                  The umbrella is your 'Employer', let them deal with it. Feel free to let end client know the score but it should sort itself out.

                  The threat of calling them out on here should be enough to ensure payment, it should be your first call tomorrow.
                  Apparently umbrella (Paystream) paid the wrong person using wrong bank details. Tried phoning this morning and Paystream is now closed to calls due to Covid-19. You have to email and they will respond within 48 hours. I'm absolutely livid. At least before all this IR35 crap, I was able to do everything on time.

                  Comment


                    #10
                    Originally posted by koalah View Post
                    Apparently umbrella (Paystream) paid the wrong person using wrong bank details. Tried phoning this morning and Paystream is now closed to calls due to Covid-19. You have to email and they will respond within 48 hours. I'm absolutely livid. At least before all this IR35 crap, I was able to do everything on time.
                    Shaggy dog story


                    Sent from my iPhone using Contractor UK Forum

                    Comment

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