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Terminating Service with my Umbrella Company

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    Terminating Service with my Umbrella Company

    Hi all,

    I got a 3 month contract, from May to July through an agency. I chose an umbrella company to do my payroll.
    I got to know from my agency in last week of June, that my contract get extended.
    So, I set up a limited company and informed my agency in the first week of July that I would like to do my payroll from July month onwards. My agency agreed and amended the contract so that the July month is reflecting details of my company as the Service Provider.

    I informed my umbrella company that I no longer require their services in the last week of July. But they are saying they require a 1 month notice to do my final pay and process my tax forms. Also I'm required to do my payroll for July through them only and I need to send my July timesheets to them. I'm OK for one month notice, but can I not do July payroll with my LTD co?

    Has anyone faced a similar situation before?
    Please suggest...

    #2
    Yes. Just tell them you got fired off the contract. Give them the payroll that they need to process in the first contract after that stick all through the Ltd.

    You can give them a months notice and not get them to process anything. It'll cost you but only one months fees.

    Comment


      #3
      Originally posted by Bhanupriya View Post
      I'm required to do my payroll for July through them only and I need to send my July timesheets to them. I'm OK for one month notice, but can I not do July payroll with my LTD co?
      When does the contract you signed with the umbrella finish and your LTD company contract start? That is what decides how you bill.

      You can't just stop billing through an umbrella and start using a LTD company in the middle of a contract. Your LTD company has to enter into a contract to supply services from a particular date and this is the date that you start billing through your company from.
      Free advice and opinions - refunds are available if you are not 100% satisfied.

      Comment


        #4
        Originally posted by Sockpuppet View Post
        Yes. Just tell them you got fired off the contract. Give them the payroll that they need to process in the first contract after that stick all through the Ltd.

        You can give them a months notice and not get them to process anything. It'll cost you but only one months fees.
        WSockpuppetS. Don't put any timesheets in through the umbrella co. As far as the agency is concerned you are working through your own Ltd now, so bill them via that. The agency should have given the umbrella notice.
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        Comment


          #5
          I got a new contract agreement with my agency and my limited company for the month of July.
          I got all my business bank details updated in my agency portal as well.
          I have not sent any of the July timesheets to my umbrella also.

          But my umbrella company is saying that I should process my July payroll through them only.

          I was informed by my accountant and my agent that there should not be any problem going with my LTD co from July when I asked them in June. And they also told me to inform my umbrella company when my LTD Co is set up. I dont really understand why umbrella company is saying like this?

          This is the reply I got from my umbrella company:

          - Section 14 of the Contract states
          - 14. The length of notice required on either side to terminate the employment (or a reference to the general law on this point, or to some reasonably accessible collective agreement containing this information)
          - As in your contract of employment
          - You may not terminate your contract of employment whilst a Client Assignment is current, unless the Client Contract for that Assignment is first lawfully terminated.
          - For the avoidance of doubt, your employment continues
          - notwithstanding termination of a Client Assignment.

          - It is highly irregular and unethical to terminate something retrospectively.

          I understand the Client Assignment (your contract) is still active. If we were to adhere to the Employment Contract strictly then you would not be able to leave until the Contract is finished. We are not doing so. We are trying to be accommodating and asking you to honour your agreement in July and then leave. Not an unreasonable request.

          Please advise what should I do?

          Thanks

          Comment


            #6
            Originally posted by Bhanupriya View Post
            I understand the Client Assignment (your contract) is still active.
            OK, so you had a contract with the client via the umbrella and this contract expired at the end of June 2011, correct? If so then just write back to them and say exactly that. The contract expired at the end of June 2011 and that is the end of the relationship between the umbrella company, the client and yourself.

            The fact that you have entered into a new contract between your LTD company and the client starting from the beginning of July is nothing to do with the umbrella. This is not an "extension" of any existing contract, this is a completely new contract which will be billed for and paid to your LTD company. The contract that the umbrella company had has now expired.

            You have obviously told the umbrella company that you have resigned and there will be no further timesheets submitted. In any case, they have no contractual agreement with the client so there is no way they can bill the client anyway.

            Originally posted by Bhanupriya View Post
            If we were to adhere to the Employment Contract strictly then you would not be able to leave until the Contract is finished. We are not doing so. We are trying to be accommodating and asking you to honour your agreement in July and then leave. Not an unreasonable request.
            The contract IS finished. It finished at the end of June. The client has not renewed the contract with the umbrella so there is no more work for the umbrella to bill for. That is the end of the relationship between the umbrella, the client and you.

            The fact that the client offered a new contract which was entered into by your new LTD company has nothing to do with the umbrella company.

            They should just shut up, give you your P45 and go away. If they won't give you a P45 then you can just fill in form P46 anyway.
            Free advice and opinions - refunds are available if you are not 100% satisfied.

            Comment


              #7
              My first contract was from May to July (3 months).
              I'm paid by my umbrella company, From July, I wanted to be paid by my LTD Co.
              I asked my agent if it will be of any issue if I go with my LTD Co in the middle of the contract and she said it should not be of any problem.
              They updated the details in the portal such that for May and June, service provider is my umbrella company and for July, it is my LTD Co. Also, they sent a agreement for July which is between my LTD Co and my recruitment agency.
              At present, my July timesheets are referred to my LTD Co.

              When I informed my umbrella to process my tax forms, they are saying I cannot go in the middle of the contract and should be with them till July. and hence I'm obliged to send my July timesheets to them.

              When I told my agent about this, she is saying she cannot influence the policies of umbrella company and cannot do anything now. I'm about to speak to her manager today about this.

              Totally struck in the middle.

              Comment


                #8
                The contract with the umbrella company is one of employment and the contract between the umbrella company and the agency is business to business; there will be termination clauses in both that would have to be adhered to for the OP not to be in breach of contract.
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                Comment


                  #9
                  Originally posted by Bhanupriya View Post
                  My first contract was from May to July (3 months).
                  I'm paid by my umbrella company, From July, I wanted to be paid by my LTD Co.
                  I asked my agent if it will be of any issue if I go with my LTD Co in the middle of the contract and she said it should not be of any problem.
                  They updated the details in the portal such that for May and June, service provider is my umbrella company and for July, it is my LTD Co. Also, they sent a agreement for July which is between my LTD Co and my recruitment agency.
                  It appears that you never terminated your original contract so you ended up with two contracts concurrently during July. That's a big old mess and you can't retrospectively terminate a contract.

                  I guess you are free to bill the agency whichever way you want to so just invoice though your LTD company and leave the umbrella company out of it. Really, the agency should have terminated the first contract with the umbrella before they issued the new one.
                  Free advice and opinions - refunds are available if you are not 100% satisfied.

                  Comment


                    #10
                    My july timesheets have been a total mess now.
                    My agent is of no help to me and emailed to her mgr.
                    He assured me that he will ensure to revert my July timesheets to my umbrella and went on a 2 week leave, handing over to another mgr.

                    Again my chasing started with this new mgr.
                    In the meantime, 2 invoices for July have already been credited to my business bank acc.

                    And now, this new mgr said, first 2 weeks of July will be with my LTD and the other 2 weeks in July will be with my umbrella. He will send the agreement accordingly.
                    So for July, I need to pay my acc fee and my umbrella fee.

                    Are the agents really will be irresponsible and lethargic towards us?

                    Comment

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