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Agency not paying umbrella company

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    Agency not paying umbrella company

    Hi,

    I have about ten weeks pay outstanding from my umbrella company for various short term assignments over the last few months. A handful have been paid. This is because the agency I am working though hasn't paid the umbrella. I have tried speaking to the agency directly, but have got nowhere (E-mails and telephone calls have been mostly ignored). I have now taken this up with my umbrella company, and will be going down the grievance/ACAS route. I have found out plenty of other contractors also haven't been paid. I suspect the agency may well soon go in to administration. As I understand it, if they do, I will only be entitled to minimum pay from my umbrella for the hours I have worked. I have two questions regarding this - is this correct, and if so, can I claim travel time as hours worked? The travel is simply to get to the place of work (often multiple sites per day). Needless to say I won't be doing any more work for this agency.

    Thanks.

    #2
    I’m afraid that we are seeing a lot of this lately.

    It seems that by using an umbrella people are unable to go after the agency via the usual debt collection methods.

    I’m afraid that my only advice is to use a Ltd company and work that way.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      Originally posted by cojak View Post
      I’m afraid that we are seeing a lot of this lately.

      It seems that by using an umbrella people are unable to go after the agency via the usual debt collection methods.

      I’m afraid that my only advice is to use a Ltd company and work that way.
      Is that really an option if the contract is inside IR35?

      Comment


        #4
        Then I can’t see how it is worth taking the contract at all if it appears that a contractor has no recourse when an end client or agency defaults on payment.
        "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
        - Voltaire/Benjamin Franklin/Anne Frank...

        Comment


          #5
          I posted this in another post.

          https://forums.contractoruk.com/acco...ml#post2551368

          It’s worth a shot, but since you’re the employee of the umbrella I’m not sure how effective it will be. The umbrella should be doing it on your behalf but they may not be that inclined to do it.

          Get permission from the umbrella to go after the money before you start.
          "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
          - Voltaire/Benjamin Franklin/Anne Frank...

          Comment


            #6
            Thanks for the advice. I'm going to speak to Citizen's advice on Monday, so I will mention your points to them and see what they say. I think I may well go Ltd. in the future, so I can personally take action if it happens again.

            Comment


              #7
              Originally posted by madame SasGuru View Post
              Is that really an option if the contract is inside IR35?
              Yes. I use my limited company for work that is inside IR35 and work that is outside IR35. Why wouldn't it be an option?

              Comment


                #8
                The brolly will have to make NMW payment, but they should also be forthcoming in putting in a small claims court application. It also means that if the agency does go under, there is a record of this for the administrators.

                Comment


                  #9
                  Originally posted by TonyF View Post
                  Yes. I use my limited company for work that is inside IR35 and work that is outside IR35. Why wouldn't it be an option?
                  With a public sector inside IR35 contract using your own limited company the agency needs to pay the Employers side of the NI on your behalf. If you've found a agency able to do that (and one that hasn't done it incorrectly) you are very lucky

                  Comment


                    #10
                    Originally posted by madame SasGuru View Post
                    With a public sector inside IR35 contract using your own limited company the agency needs to pay the Employers side of the NI on your behalf. If you've found a agency able to do that (and one that hasn't done it incorrectly) you are very lucky
                    But this thread hasn't mentioned public sector, only being inside IR35.

                    Where did being in the public sector come into the discussion - I'm inside IR35 and not in the public secotr.

                    Comment

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