AWR Swedish Derogation = more pay, same frequency !

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LisaContractorUmbrella replied

8 May 2012, 08:21
Originally posted by SunnyInHades View Post

Just talked to a mate of mine whose now using an AWR Swedish Derogation umbrella after switching from an old style umbrella - he's taking more cash than before but being paid at the same frequency !

Old umbrella:
1) Works at client site, get timesheet signed weekly, submits to umbrella
2) Umbrella pays earnings weekly (fee and HMRC deduced)

AWR Swedish Derogation umbrella:
1) Works at client site, get timesheet signed weekly, submits to umbrella
2) Umbrella pays minimum wage + 'bonus' + 'derogation pay' weekly (fee and HMRC deduced)

The 'bonus' is thousands of quid and is on the same payslip - no delayed payment, waiting until the end of the month of anything like that for bonus pay.
'Derogation pay' is pay between assignments (minimum wage per day) paid in advance - rather than wait until the contractor is between assignments to pay him, it's paid upfront.
The Weekly fee is similar to the old umbrella.

Looks like an acceptable model for Umbrellas - as long as the full bonus (hundreds/thousands) is always paid on time weekly and the umbrella fee is low.

I am sorry but that makes no sense at all - can you please explain in more detail exactly how the employee is taking home more money
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SunnyInHades started a topic AWR Swedish Derogation = more pay, same frequency !

4 May 2012, 19:28
AWR Swedish Derogation = more pay, same frequency !

Just talked to a mate of mine whose now using an AWR Swedish Derogation umbrella after switching from an old style umbrella - he's taking more cash than before but being paid at the same frequency !

Old umbrella:
1) Works at client site, get timesheet signed weekly, submits to umbrella
2) Umbrella pays earnings weekly (fee and HMRC deduced)

AWR Swedish Derogation umbrella:
1) Works at client site, get timesheet signed weekly, submits to umbrella
2) Umbrella pays minimum wage + 'bonus' + 'derogation pay' weekly (fee and HMRC deduced)

The 'bonus' is thousands of quid and is on the same payslip - no delayed payment, waiting until the end of the month of anything like that for bonus pay.
'Derogation pay' is pay between assignments (minimum wage per day) paid in advance - rather than wait until the contractor is between assignments to pay him, it's paid upfront.
The Weekly fee is similar to the old umbrella.

Looks like an acceptable model for Umbrellas - as long as the full bonus (hundreds/thousands) is always paid on time weekly and the umbrella fee is low.
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