Seriously out of pocket

[Gladiatrix]

Hi all

I would appreciate some advice.

In September this year I accepted the offer of a contract with a financial services company via a recruitment agent. Having finally realised that working PAYE was costing me a fortune I decided to use an umbrella company.

The agency's contract form merely stated 3 months starting on 1st September.

I was supposed to be working 5 days a week at £400 per day paid weekly. A week after I arrived at the company I was informed that an internal board had met, and the company knew this meeting was going to be held, and several projects on which I should have worked were no longer going ahead. This meant almost no work for me to do and with less than a week's notice my days were cut to 2 here, 1 there and so forth. This has cost me over £5,000 gross.

The company and the recruiter are denying any obligation either legal, contractual or moral to me. The recruitment agency with whom I liaised and who dealt directly with the company on my behalf is now claiming that I was an employee of the umbrella company and should take this up with them. I don't see how this can be the umbrella's responsibility as they only dealt with me, and had no contact with the company.

I am not prepared to turn my back on this kind of loss and would like to know if I have any come back at all.

[LisaContractorUmbrella]

Hi Gladiatrix

What was the exact wording of the contract? Usually there would be 2 or more sections that deal with the Consultants obligations and, typically, they would give an indication of working hours and details of the services to be provided. There should also be a section giving the Agency/Client responsibilities.

[Support Monkey]

Hi all

I would appreciate some advice.

In September this year I accepted the offer of a contract with a financial services company via a recruitment agent. Having finally realised that working PAYE was costing me a fortune I decided to use an umbrella company.The agency's contract form merely stated 3 months starting on 1st September.

I was supposed to be working 5 days a week at £400 per day paid weekly. A week after I arrived at the company I was informed that an internal board had met, and the company knew this meeting was going to be held, and several projects on which I should have worked were no longer going ahead. This meant almost no work for me to do and with less than a week's notice my days were cut to 2 here, 1 there and so forth. This has cost me over £5,000 gross.

The company and the recruiter are denying any obligation either legal, contractual or moral to me. The recruitment agency with whom I liaised and who dealt directly with the company on my behalf is now claiming that I was an employee of the umbrella company and should take this up with them. I don't see how this can be the umbrella's responsibility as they only dealt with me, and had no contact with the company.

I am not prepared to turn my back on this kind of loss and would like to know if I have any come back at all.

There is no difference, all they do is facilitate your payment from the client back to you
You are an employee of the Umbrella company, if your using an umbrella the contract is between them and the agency or end Client

you have not lost any money as you never had it in the first place, unfortunately this is what happens when your a contractor

[badger7579]

As said before it depends on wht the contract says but you need to start thinking like a contractor rather than a permie. If there is not work for a contractor to do as per the situation you describe then the client can ditch you at a moments notice. Thats one of the reasons contractors are paid more (flexibility) and its also one of the main indicators for IR35 MOO.

[Gladiatrix]

Seriously out of pocket

Dear Lisa

The contract said what I stated before, with no other information.

[Zippy]

I think you are stuffed. You are employed by the umbrella co but most of your pay will be 'commission'. You'll also find they won't want to rock the boat with the agency.
As long as they are getting their weekly fee for processing your payment they will be happy. Try to group together your days so that you are submitting a timesheet for 5 days, as you'll pay the same fee whether it is a one day or five day week.

[LisaContractorUmbrella]

Dear Lisa

The contract said what I stated before, with no other information.

Then, unfortunately, I would suggest that you will have no redress as there can have been no breach of contract - sorry