Originally posted by lucycontractorumbrella
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Reply to: Holiday/sick pay, hours offered etc
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Previously on "Holiday/sick pay, hours offered etc"
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Originally posted by questions View PostContractor Umbrella did say they would get more details to me this week so hopefully they will come through.
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Just been having a chat with Crystal Umbrella and they seem to have the same practice. They deduct 14.3% of the contract rate with no employers NI tax allowances included \ allowed for (13.8% NI + 0.5% levy on total amount). When I asked for more details the response was:
"Your additional required cost is 14.3% - this is for employers NI, sick pay, paternity pay and includes the levy for apprenticeship Levy. If you don’t go sick then you are not due anything back – just the same as a normal employee."
I'm still talking to a couple of others, including contractor umbrella, but the additional costs (on top of admin costs) are not very clear from any of them; it is just a lump sum that includes Employers NI and apprenticeship levy but when I calculate that amount, it is always less than the additional costs I am being quoted.
Contractor Umbrella did say they would get more details to me this week so hopefully they will come through.
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Originally posted by bikeman View PostThat doesn't sound like good business for them
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Originally posted by bikeman View PostPresumably they retain some of your pay to cover sick days? Or as long as you're paid in arrears they have something in the pipeline to cover it. One things for sure it wont be coming out of anyone's pocket except yours.
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Originally posted by psychocandy View PostRight this might be a stupid question but they really pay sick pay out of their own pocket? How does this work for them then?
Surely I could work for a week (say earn £2000 and get paid it) then pull a sickie for a month? Where does the money come for this?Last edited by bikeman; 23 April 2017, 18:27.
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Originally posted by bikeman View PostIn my experience the umbrella cos I've used post 2006 did not retain holiday pay. Holiday pay was itemised it on my payslip and paid it as 'an advance on account of sums due'. I know that Contract Umbrella do retain holiday pay. Some do and some don't, it's probably just an interpretation of HMRC's convoluted rules. Given a choice I'd choose an umbrella co who don't hold onto my pay.
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Originally posted by psychocandy View PostRight this might be a stupid question but they really pay sick pay out of their own pocket? How does this work for them then?
Surely I could work for a week (say earn £2000 and get paid it) then pull a sickie for a month? Where does the money come for this?
You need to have worked for eight weeks before SSP becomes payable. Maybe you should read up on your rights as an employee?
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Right this might be a stupid question but they really pay sick pay out of their own pocket? How does this work for them then?
Surely I could work for a week (say earn £2000 and get paid it) then pull a sickie for a month? Where does the money come for this?
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Originally posted by lucycontractorumbrella View PostThey should be retaining it, if they are paying you back every pay period then they are operating rolled up holiday pay, which was classified as unlawful in 2006 under the EU Working Time Directive! As for sickpay, they cannot ask this to come from you the contractor, it must be paid for out of their profit, if they retain this, it is classed as an unlawful deduction of earnings
As to why they pay most of your pay as a bonus, this is because they have an employment contract with you and must by law pay you minimum wage. If you have a signed timesheet and the umbrella co's invoice isn't paid they must still pay you min wage.Last edited by bikeman; 17 April 2017, 20:26.
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Originally posted by psychocandy View PostNot a great start mind. They promised to call me back at 1pm yesterday and didnt bother.
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Originally posted by lucycontractorumbrella View PostThey should be retaining it, if they are paying you back every pay period then they are operating rolled up holiday pay, which was classified as unlawful in 2006 under the EU Working Time Directive! As for sickpay, they cannot ask this to come from you the contractor, it must be paid for out of their profit, if they retain this, it is classed as an unlawful deduction of earnings
BTW - this is a company on the list. Sterling.
Not a great start mind. They promised to call me back at 1pm yesterday and didnt bother.
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Originally posted by psychocandy View PostThey want to know if I want the company to retain holiday/sick pay or for me to get it - WTF.
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