Complaining about an umbrella company

stevelatimer

I today made the decision to change umbrella companies after 7 months of complete incompetence from my old one

I'm still having hell with the old one who still haven't paid me for the week before last which should have went in on Friday. Not the first time this has happened

In short they changed their website pay system so I entered my timesheet as normal on Thursday evening and called on Friday to make sure it was all fine as I they have a history of not paying me on time so I was worried. Didn't get paid on Friday. I pay £5 for their express service which guarantees Friday payment as well.

So I spent the whole of this morning on the phone leaving messages for payroll who were too busy top speak to me. I demanded speaking to a manager and got one. he was an arrogant little so and so who wasn't apologetic in the slightest, took a few details and said he would sort it. None of the messages I had left got a response. I was ringing an 0845 from a mobile and probably have spent an hour in total on the phone

Didn't get paid this evening either. It always goes in around 6 oclock. So essentially they have had my money for 4 days and won't release it or talk to me! I really don't know what to do.

I wrote a complaint by email but as they just ignored the first one a few months ago I doubt they will even read it let alone respond to it.

Who is the regulatory body for companies like that? The Ombudsman? Is there someone else I can contact?

I have had to cancel all my Direct debits to avoid charges so going to have to go through the hassle of setting them all up again.

Help!

Hammyman

There is no regulatory body. If you want to play at self employment, these are the risks you take. You will have to do like other self employed people and take them to court for your money.

stevelatimer

Hammyman wrote: »

There is no regulatory body. If you want to play at self employment, these are the risks you take. You will have to do like other self employed people and take them to court for your money.

Ah right. Thanks for that.

Not really what I wanted to hear but at least I know now. Probably nothing i can do really apart from keep pressuring them. Pretty disgusting behaviour to be honest. I'm lucky I guess that I don't have a family to feed

Hammyman

Depending on how the umbrella company is configured, you could always take yourself to an employment tribuneral for not paying yourself your wages

KiKi

Hammyman wrote: »

Depending on how the umbrella company is configured, you could always take yourself to an employment tribuneral for not paying yourself your wages

Seriously, it's 'tribunal'.

SteProud

Hi Steve

I work for an umbrella company so I am not impartial but there are some dody ones out there.

Can I ask a few quick questions and I might be able to offer some advice.

Have you got a full contract of employment in place with the umbrella company you are working with? You should have and this will make you their employee in the eyes of the law and should offer you some protection.

Have you double checked that the umbrella company has paid the correct tax for you? I'm really not trying to panick you but in some cases the dodgy umbrella companies have gone to the wall and left contractors unpaid and have also not paid any tax to HMRC. HMRC will come after the individual here as it's the individual's responsibility to ensure their tax liabilities are met. HMRC can impose interest on unpaid tax so its worth finding out sooner rather then later.

There are two independent websites that both offer guides on how to pick an umbrella company and the types of questions you should ask before you sign up. you can find them at http://www.contracteye.co.uk/umbrella-company.shtml and http://www.contractorcalculator.co.uk/Umbrellas.aspx

hope these help.

Hammyman

KiKi wrote: »

Seriously, it's 'tribunal'.

I know...but for some reason it is the one word I have difficulty with. I know how to use an apostrophe correctly so can I be let off? :D:D

Hammyman

SteProud wrote: »

Have you got a full contract of employment in place with the umbrella company you are working with? You should have and this will make you their employee in the eyes of the law and should offer you some protection.

Surely you're a director of your own Ltd Company as umbrella companies merely do the back office work so you'd be employed by yourself effectively and as I said, have to take yourself to employment tribunal to recover the wages you've not paid yourself?

SteProud

Hammyman wrote: »

Surely you're a director of your own Ltd Company as umbrella companies merely do the back office work so you'd be employed by yourself effectively and as I said, have to take yourself to employment tribunal to recover the wages you've not paid yourself?

Absolutley not! If you are self employed via your own limited company then you wouldn't need an umbrella company. An umbrella company is an alternative to going Ltd, that's all.

You still find work via an agency and are responsible for your own destiny. All an umbrella company does in effect is invoice the client for your time, collect the invoice value on your behalf and pay you accordingly once the relevant tax and NI has been deducted (and the umbrella's fee). You can also claim expenses to have them offset against your tax liability. Again though, you need a contract of employment with the umbrella to be able to do this.

Its an alternative to having your own ltd company for those who can't or don't want to run their own business via a ltd.

SteProud

Hammyman wrote: »

There is no regulatory body. If you want to play at self employment, these are the risks you take. You will have to do like other self employed people and take them to court for your money.

Not quite true, there is an organisation called the PCG. Professional Contractors' Group, which might be able to offer you some advice as well.

stevelatimer

SteProud wrote: »

Hi Steve

I work for an umbrella company so I am not impartial but there are some dody ones out there.

Can I ask a few quick questions and I might be able to offer some advice.

Have you got a full contract of employment in place with the umbrella company you are working with? You should have and this will make you their employee in the eyes of the law and should offer you some protection.

Have you double checked that the umbrella company has paid the correct tax for you? I'm really not trying to panick you but in some cases the dodgy umbrella companies have gone to the wall and left contractors unpaid and have also not paid any tax to HMRC. HMRC will come after the individual here as it's the individual's responsibility to ensure their tax liabilities are met. HMRC can impose interest on unpaid tax so its worth finding out sooner rather then later.

There are two independent websites that both offer guides on how to pick an umbrella company and the types of questions you should ask before you sign up. you can find them at http://www.contracteye.co.uk/umbrella-company.shtml and http://www.contractorcalculator.co.uk/Umbrellas.aspx

hope these help.

Thanks for the info.

Got it all sorted in the end. They finally paid me along with my bank charges after I sought advice from a solicitor.

So I signed up with Parasol and lo and behold they have failed to pay me on my first pay day! Was supposed to be yesterday! Aaarrrrgghhh!!!!

I was with Parasol for 6 months previously without a hitch and cant believe this has happened after the springboard fiasco!

Would give anything to be back in permanent employment and getting paid on time. The constant stress of chasing payments and wondering whether I will have money or not is really awful