'Gap Pay' - Rip-off or just forcing contractors into Permiedom?

[LisaContractorUmbrella]

Maybe that is the reason for the announcement....

But surely if such a 'big' umbrella company weren't paying travel and subsistence expenses we would have heard about it before now?

[LisaContractorUmbrella]

But they're an umbrella company - umbrellas already do that.

Exactly - this is why the press announcement is confusing me

[cojak]

did you not read what Lisa said. They provide the gap payments to ensure you can claim expenses back from your contracts. without those gaps they wouldn't be able to deduct expenses for your contracts.

But they're an umbrella company - umbrellas already do that.

[simondolan]

mwuh

This is a little odd! Pay between assignments has been a feature of an over-arching contract for years as it forms the basis of the mutuality of obligation between an umbrella company and a contractor and without such a contract in place the umbrella company wouldn't be allowed to put through travel and subsistence expenses

Maybe that is the reason for the announcement....

[LisaContractorUmbrella]

Still can't quite figure out why this is news

[eek]

Actually I'm being a dim here - I was looking at Giant as being an agency, of course it's not - it's an umbrella company (as Lisa alluded).

So this is just Giant positioning itself as a 'consultancy', trying to muscle in on agency territory. When it is in fact a jumped-up umbrella company trying to cream off the agencies margin.

I'd be ticked off about this if I was Andy...

did you not read what Lisa said. They provide the gap payments to ensure you can claim expenses back from your contracts. without those gaps they wouldn't be able to deduct expenses for your contracts.

[cojak]

Actually I'm being a dim here - I was looking at Giant as being an agency, of course it's not - it's an umbrella company (as Lisa alluded).

So this is just Giant positioning itself as a 'consultancy', trying to muscle in on agency territory. When it is in fact a jumped-up umbrella company trying to cream off the agencies margin.

I'd be ticked off about this if I was Andy...

[LisaContractorUmbrella]

If I wanted to work for an Umbrella company I'd phone Lisa up.

But I don't.

mwuh

This is a little odd! Pay between assignments has been a feature of an over-arching contract for years as it forms the basis of the mutuality of obligation between an umbrella company and a contractor and without such a contract in place the umbrella company wouldn't be allowed to put through travel and subsistence expenses

[northernladuk]

Yup. But thing is, this is blurring the lines between those of us who want to be 'real' contractors, running their own ltd co and being in charge to the 'permietractor' prevading the industry.

Imho, its just another nail in the contracting industry and with the current market, tax take etc, I truely wonder whether its all worth it anymore.

+1 to that unfortunately the ratio is strongly in favour of the permietractor and growing rapidly.

[BolshieBastard]

Aren't they just withholding salary for a "rainy day"?

Yup. But thing is, this is blurring the lines between those of us who want to be 'real' contractors, running their own ltd co and being in charge to the 'permietractor' prevading the industry.

Imho, its just another nail in the contracting industry and with the current market, tax take etc, I truely wonder whether its all worth it anymore.

[cojak]

Aren't they just withholding salary for a "rainy day"?

If I wanted to work for an Umbrella company I'd phone Lisa up.

But I don't.

[Sausage Surprise]

Aren't they just withholding salary for a "rainy day"?

[cojak]

Tax compliance drives pay between assignments for giant contractors | Business intelligence for recruitment and resourcing professionals

All I can see are the burdens of contracting with none of the benefits of permiedom.

I've never blacklisted any agency that can get me a contract, but I'll be damned if I'll be 'employed' by Giant.