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When Umbrellas go bust?

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    When Umbrellas go bust?

    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.

    #2
    Originally posted by Nagsman View Post
    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.

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      #3
      Originally posted by Nagsman View Post
      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


      Sent from my iPhone using Contractor UK Forum

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        #4
        Originally posted by Nagsman View Post
        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.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

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          #5
          Originally posted by northernladuk View Post
          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.

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            #6
            I don't suppose he's a member of IPSE?

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              #7
              Originally posted by ladymuck View Post
              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.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

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                #8
                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
                I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

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                  #9
                  when Umbrellas go bust

                  Originally posted by northernladuk View Post
                  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.

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                    #10
                    Originally posted by Nagsman View Post
                    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.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

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