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Umbrella company doesn't want to pay monthly despite initial agreement

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    Umbrella company doesn't want to pay monthly despite initial agreement

    Is anyone on here that knows about umbrella companies please? I can't work my own limited co so have to go umbrella for an office job I started just over a month ago. When I called the umbrella co they said I had choices with them: of weekly payslip, or pay lesser admin charges if I go monthly payslips. So I said monthly.

    However the employment agent who got me the job say they want timesheets filled in weekly on their own portal purely due to them billing the actual manufacturing company I am temping with. My understanding is those terms have nothing to do with me and the umbrella relationship. And the employment agency even agree I can choose how I go umbrella.

    But only 5 weeks in, the umbrella co are trying to now say still the terms with that particular employment agent are weekly. This only got said today. I wasn't told this. So as far as I am concerned that is their error. But I caught them out and now they also twist the story by them also saying if I fill out the employment agents time sheets by "holding them back" to every 4 weeks then the umbrella would then be able pay me monthly. Not exactly 21st century use of umbrella technology you might say. And makes no sense whatsoever. As they sell weekly and monthly timesheets on their website.

    But then the employment agent say they need them completed weekly for their paperwork to bill the manufacturing company in question.

    It seems to me and even on their website the umbrella co clearly state weekly or monthly payslips but don't have the facility to "hold 4 x timesheets" to pay me at a month end as was agreed with me at the start. It's daft in my opinion. Can someone clarify or point me if there is an :umbrella law" on this? They are in breach somehow I would think. I have an email from the umbrella stating I would be paid monthly.

    The contract document on the umbrella portal which only now I managed to see as there was access issues, is just very basic looking at my profile on their system AND was filled out by an umbrella employee person not me. So clearly whomever filled it in is at fault not me.

    My question is am I supposed to be tied by sudden appearing change of terms by the umbrella or the fact the umbrella are dictating that's the terms of the employment agent?

    As I say they put in writing I could be monthly at the umbrella but they are now back peddling on their mustakes.

    What is the umbrella laws and my rights please?

    I hope I wrote the scenario clearly. Advice would be appreciated. Thanks.

    #2
    There is no law on how people are paid. You are paid when you agree to be paid. Commercial terms can be different as they can be up to 90 days in arears granted. But the difference between weekly and monthly is a choice.

    Did you have open season to pick the umbrella you wanted or did you go with a list of FCSA approved ones? How much different is the weekly vs monthly pay difference?

    Give Lucy at Clarity Umbrella a call and she'll talk you through it. If you have the choice of brollys you might wanna check out her offering while you are on the phone as well
    Last edited by northernladuk; 21 April 2021, 22:09.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #3
      Payment terms depend on what the agency wishes to do and that will in turn be based on how the end client or the agency's factoring company works.

      If the agency wants to bill weekly there is nothing an umbrella firm can do about it and as the umbrella firm has work to do weekly they will charge weekly for it.

      And being frank

      1) I wouldn't want any umbrella company to be holding on to my money for longer than the bare minimum time required.
      2) Your request is even more work than weekly payment - currently the process is standardised - money arrives, Payslip calculated, RTI submission sent, salary sent to your bank account.

      You are asking them to go outside that standard process and want to pay the lower monthly fee for more work - I can't see any umbrella firm I would trust doing so (you standardise processes for a reason).
      Last edited by eek; 22 April 2021, 06:26.
      merely at clientco for the entertainment

      Comment


        #4
        Yes, I would push for weekly payments from an Umbrella from a risk mitigation point of view.
        "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
          Why do you want the risk either the end client or agent gos bust and you lose a month wages ?

          Comment


            #6
            Originally posted by GhostofTarbera View Post
            Why do you want the risk either the end client or agent gos bust and you lose a month wages ?
            the extra £20 or so of costs (or £9 after HMRC grabbed the tax).
            merely at clientco for the entertainment

            Comment


              #7
              The umbrella company is also not supposed to withold the money, once they have the funds, they are supposed to ensure that it is released to you asap.

              Comment


                #8
                Originally posted by lucyclarityumbrella View Post
                The umbrella company is also not supposed to withold the money, once they have the funds, they are supposed to ensure that it is released to you asap.
                Apologies for hijacking this thread, but what Lucy said is how I thought it works and gives me yet another reason to moan about my umbrella.

                Until now I have got paid the day after Umbrella have received the funds and they still state this on their promotions. But suddenly they’ve decided they will do me the favour of always paying me the Monday after they’ve received the funds so that I can benefit from consistency i.e. Potentially not get paid for upto 6 days after they have received the funds.

                Like others have said, it’s risky enough having an umbrella involved and not being paid weekly. So for them to add further delay takes the P.

                I ordered them to change it back to immediate payment and they agreed and seemed to comply. But now I’ve had an e-mail saying they are again going to do me the favour of creating a delay.

                Moan over

                Comment


                  #9
                  Originally posted by PTP View Post

                  Apologies for hijacking this thread, but what Lucy said is how I thought it works and gives me yet another reason to moan about my umbrella.

                  Until now I have got paid the day after Umbrella have received the funds and they still state this on their promotions. But suddenly they’ve decided they will do me the favour of always paying me the Monday after they’ve received the funds so that I can benefit from consistency i.e. Potentially not get paid for upto 6 days after they have received the funds.

                  Like others have said, it’s risky enough having an umbrella involved and not being paid weekly. So for them to add further delay takes the P.

                  I ordered them to change it back to immediate payment and they agreed and seemed to comply. But now I’ve had an e-mail saying they are again going to do me the favour of creating a delay.

                  Moan over
                  That to me screams cash flow difficulties change umbrella firm
                  merely at clientco for the entertainment

                  Comment


                    #10
                    Originally posted by PTP View Post
                    Until now I have got paid the day after Umbrella have received the funds and they still state this on their promotions. But suddenly they’ve decided they will do me the favour of always paying me the Monday after they’ve received the funds so that I can benefit from consistency i.e. Potentially not get paid for upto 6 days after they have received the funds.
                    Seems ridiculous unless they are trying to assist with not receiving payments twice in one tax period - but again that should be your choice, not theirs.

                    Comment

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