Umbrella start-up due diligence

[breaktwister]

Looking to start-up an umbrella (I won't go into why here as it will deflect from the topics below) and have hit a wall of learning on two topics:

1. Sick pay. Is there a contractual protection anywhere against an inside IR35 contractor that goes on the sick but for some reason the end-client wants to "give them a chance to get better"? In this case the financial risk is with the Umbrella in paying SSP, surely that needs to be transferred to the end-client somehow?

2. Redundancy. How does the industry deal with long-term contractors who keep getting extended with the same client when, after 2 years they become entitled to Statutory Redundancy pay from the Umbrella? Would be interested to hear any views or real life examples of this scenario.

[eek]

Looking to start-up an umbrella (I won't go into why here as it will deflect from the topics below) and have hit a wall of learning on two topics:

1. Sick pay. Is there a contractual protection anywhere against an inside IR35 contractor that goes on the sick but for some reason the end-client wants to "give them a chance to get better"? In this case the financial risk is with the Umbrella in paying SSP, surely that needs to be transferred to the end-client somehow?

2. Redundancy. How does the industry deal with long-term contractors who keep getting extended with the same client when, after 2 years they become entitled to Statutory Redundancy pay from the Umbrella? Would be interested to hear any views or real life examples of this scenario.

1. You pay them sick pay for 6 months and you pay them the appropriate holiday pay due for the period from the margins you make from other workers. Don't like it and the Employment Tribunal will throw the book at you.

2. No one here is going to cover that topic for you - go and get some proper legal advice.

[northernladuk]

So you want to start an umbrella company but you are asking a bunch of LTD Co contractors about the details of two points of the basic services? Good luck with that.

I don't want to be rude but with all the problems with umbrellas and contractors losing money from them and you are asking us how you should run your company? I'm sorry but you are going to get very short thrift on here. Asking your customers questions like this doesn't look good. Either do it properly or don't do it at all. It's us that's going to suffer the fall out for your mistakes.

[northernladuk]

You've got a rather odd posting history that leads to you starting a highly complex company dripping in legal issues. Am I right in assuming this is one of these ideas where a contractor spots a hole and thinks they can do it better? Think they can place contractors on site and pocket the cut? Get a bunch of contractors together and think they can be a consultancy? It never works. You think you can do a better job of an umbrella so start one up on the side and hover up a few contractors?

I assume you are also trying to do work for your client setting all this up?

[breaktwister]

1. You pay them sick pay for 6 months and you pay them the appropriate holiday pay due for the period from the margins you make from other workers. Don't like it and the Employment Tribunal will throw the book at you.

2. No one here is going to cover that topic for you - go and get some proper legal advice.

Any specialist lawyers you can recommend that know how the industry is currently dealing with these two topics?

[lucyclarityumbrella]

Start an umbrella company they said - it will be easy , seriously there are so many things you need to know to get this right, so please do your research!

[northernladuk]

Start an umbrella company they said - it will be easy , seriously there are so many things you need to know to get this right, so please do your research!

He is doing is research. He's asking us. It's called diligence dahhhhling.

[lucyclarityumbrella]

Ahhhh the reliable resource itself!

[courtg9000]

Looking to start-up an umbrella (I won't go into why here as it will deflect from the topics below) and have hit a wall of learning on two topics:

1. Sick pay. Is there a contractual protection anywhere against an inside IR35 contractor that goes on the sick but for some reason the end-client wants to "give them a chance to get better"? In this case the financial risk is with the Umbrella in paying SSP, surely that needs to be transferred to the end-client somehow?

2. Redundancy. How does the industry deal with long-term contractors who keep getting extended with the same client when, after 2 years they become entitled to Statutory Redundancy pay from the Umbrella? Would be interested to hear any views or real life examples of this scenario.

I once got offered one of these for purchase at quite a good price (still 6 figures). Trust me its not worth it.