When Umbrellas go bust?

[northernladuk]

In this scenario he is employed. I presume IPSE doesn’t cover this.

Bleedin agents. Clueless I tell ye.

[jamesbrown]

In this scenario he is employed. I presume IPSE doesn’t cover this.

Depends what you mean by cover it. They have agency/umbrella default cover:

If you have an outstanding invoice with an end client, agency, or umbrella company that is going bankrupt or into administration, it’s likely you won’t get paid. That’s why we provide IPSE members with up to £10,000 if an end client or agency goes into administration and up to £2,500 if your umbrella company goes bankrupt or into administration.

Protect yourself | IPSE

[malvolio]

In this scenario he is employed. I presume IPSE doesn’t cover this.

No, but they do have an option for a payment if your umbrella/agency/client goes bust...

[Andy Hallett]

I don't suppose he's a member of IPSE?

In this scenario he is employed. I presume IPSE doesn’t cover this.

[northernladuk]

He had previously been using a reliable long established umbrella but the Agency would not allow that one as it was not on their preferred suppliers list of 4 - 2 of which now appear to have gone down.

Any chance you can post them. This will affect more than just you so really useful to get some information up for others that come looking.

The Crystal Umbrella thread started with one person mentioning it and we had a flurry of people getting really useful advice about the situation.

If you don't want to them PM me the agents details and I'll ring them and try and get the info out of them.

[Nagsman]

when Umbrellas go bust

Not duty of care. They should have done their diligence but they aren't liable. Did they just recommend them or did they give you a list you had to chose from? Golden tip. Never use anything an agent recommends if at all possible. They only do it for kick backs.

Definitely take it back to the agent through. I'd be threatening to down tools as well. That means the agent won't get his comission so they'll sit up and take notice of that.

He had previously been using a reliable long established umbrella but the Agency would not allow that one as it was not on their preferred suppliers list of 4 - 2 of which now appear to have gone down.

[Scruff]

mmm...interesting

If they have been placed into formal Liquidation, you, as an employee of the Umbrella should have preferential rights as a creditor.

I would firstly try to determine whether

1. The Umbrella is incorporated in England and Wales (look up their names from the contract in Companies House).
2. It is actually in Liquidation (again, look in Companies House for their status).
3. If they are in Liquidation, contact the Liquidator (by telephone and then follow up by email).
4. Confirm with the Liquidator that they have you down as an employee and creditor.

IANYA

[northernladuk]

Although hard to do in practise if an agent refuses to let you use your preferred brolly. Even if they did pay their subs to the big boys club.

Yep. There are a few out there that will let you chose still. I've assumed this isn't a case of the 5 big ones like we usually get though. None of them are going to go bust or are that bad they don't respond so assuming it's a backhander set up with little diligence carried out.

Be really useful if he could name them. We had a field day with the Crystal Umbrella/Pendragon/Back to Crystal carry on.

[jamesbrown]

I don't suppose he's a member of IPSE?

[ladymuck]

Not duty of care. They should have done their diligence but they aren't liable. Did they just recommend them or did they give you a list you had to chose from? Golden tip. Never use anything an agent recommends if at all possible. They only do it for kick backs.

.

Although hard to do in practise if an agent refuses to let you use your preferred brolly. Even if they did pay their subs to the big boys club.

[northernladuk]

A family member, long time contractor is working via and Agency which has insisted that he uses one of the Umbrellas on their preferred list. Back in September Umbrella 1 ceased to trade owing him 2 weeks money. More recently Umbrella 2 has not paid him since mid-december and is unresponsive to emails and phone calls.

Since the Agency is insisting that these are approved umbrellas are they legally liable? Surely they are in breach of their duty of care.

Not duty of care. They should have done their diligence but they aren't liable. Did they just recommend them or did they give you a list you had to chose from? Golden tip. Never use anything an agent recommends if at all possible. They only do it for kick backs.

Definitely take it back to the agent through. I'd be threatening to down tools as well. That means the agent won't get his comission so they'll sit up and take notice of that.

[GhostofTarbera]

A family member, long time contractor is working via and Agency which has insisted that he uses one of the Umbrellas on their preferred list. Back in September Umbrella 1 ceased to trade owing him 2 weeks money. More recently Umbrella 2 has not paid him since mid-december and is unresponsive to emails and phone calls.

Since the Agency is insisting that these are approved umbrellas are they legally liable? Surely they are in breach of their duty of care.

No


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[lucyclarityumbrella]

A family member, long time contractor is working via and Agency which has insisted that he uses one of the Umbrellas on their preferred list. Back in September Umbrella 1 ceased to trade owing him 2 weeks money. More recently Umbrella 2 has not paid him since mid-december and is unresponsive to emails and phone calls.

Since the Agency is insisting that these are approved umbrellas are they legally liable? Surely they are in breach of their duty of care.

Hmmm that's an interesting one. It is obviously down to the umbrella to make payment to you and you make sure that your family member is noted as a debtor with the liquidators. If the umbrella is unresponsive, then I would be asking the agency to make contact with them and update you given they forced you into employment with them, morally yes, as to whether there is any legal recourse I am guessing probably not.

[Nagsman]

A family member, long time contractor is working via and Agency which has insisted that he uses one of the Umbrellas on their preferred list. Back in September Umbrella 1 ceased to trade owing him 2 weeks money. More recently Umbrella 2 has not paid him since mid-december and is unresponsive to emails and phone calls.

Since the Agency is insisting that these are approved umbrellas are they legally liable? Surely they are in breach of their duty of care.