Everything you ever wanted to know about umbrella companies but were afraid to ask...

[Banshee]

Umbrella - minimum wage

The contract of employment that you sign with your umbrella company should indicate that you will receive a minimum wage salary and a profit related bonus. The minimum wage should be payable to you regardless of whether or not the umbrella company receives funds from the agency/client and the bonus is payable upon receipt of said funds.

As with any other UK employer an umbrella company has a legal responsibility to pay employer's national insurance contributions to HMRC; the contract rate will be paid to the umbrella company by the agency/client and, from this, the umbrella will fulfill this legal responsibility and will retain their margin (usually £25-£30 per week). The balance is your salary which is then subject to PAYE income tax and employee's national insurance deductions.

Again, as with any other employer, if you decide that you no longer want to work with your umbrella company, you will be required to give notice - usually 1 month.

HTH

Unfortunately, and unless something has changed since the above was written and posted, I've just been told by my Umbrella that they CANNOT pay me NMW until the end client has paid them....

Who is right? the above advice or my Umbrella?

[lucyclarityumbrella]

Unfortunately, and unless something has changed since the above was written and posted, I've just been told by my Umbrella that they CANNOT pay me NMW until the end client has paid them....

Who is right? the above advice or my Umbrella?

As Lisa said the minimum wage should be payable to you regardless of whether or not the umbrella company receives funds from the agency/client and the bonus is payable upon receipt of said funds. You must go back to your contract of employment with them to determine what they have said.

[Banshee]

As Lisa said the minimum wage should be payable to you regardless of whether or not the umbrella company receives funds from the agency/client and the bonus is payable upon receipt of said funds. You must go back to your contract of employment with them to determine what they have said.

You are my Umbrella and that is what I determine my contract with you says. However, my ELO says different......

When should I get grumpy? or shall I stay at slightly irritated?

[lucyclarityumbrella]

You are my Umbrella and that is what I determine my contract with you says. However, my ELO says different......

When should I get grumpy? or shall I stay at slightly irritated?

If the invoice is overdue, then you can be paid NMW - if you drop me an email and let me know your name I can look into it this end and speak with the ELO.