Agency Offer letter binding? Umbrella company woes

elainewi

I was phoned up by an agency and asked to register because she thought she could place me at the council offices. I registered, and she read out a job spec saying it paid £8 an hour. £8 an hour is the minimum I feel I can take, and the council offices are an hour away from home. I did ask her if I was charged to be paid my own wages, and she said 'nothing like that'. I like the sound of the job spec and asked to be put forward for it. I attended the interview and was offered the job. She confirmed the rate of pay again at £8.

Then she said she would get someone to ring me about my pay, I had a little warning light go on in my head, but I let the chap phone me. It was an umbrella company and the weekly fee was £23 a week (plus I pay their Employers NI out of it). I have had bad experiences with umbrella companies before, as I didn't find any savings and I feel it is tax evasion as I will not be spending for £10 a day on food, plus I haven't earned anything this year and at the end of the 6 month contract I will still probably be just under the tax threshold - so it actually won't be off setting a tax 'burden'. When I refused to be paid by the umbrella company the agent rang me back and did her best to sell me on it. I really dug my heels on at this point. She then said if I wasn't paid by the umbrella company that my rate would be £7.50. This arrangement was only mentioned after I accepted the job. I emailed her yesterday and asked for the rate to be £8 per hour no strings attached.

An offer letter and contract hit my doorstep this morning from the agency - not the umbrella group. It said my rate of pay is £8 written on the day I accepted the job. How binding is the figure in the offer letter? If they start paying me £7.50 an hour do I have a leg to stand on?

I really want the job as it is something slightly different than what I have done before, but I feel misled by agent and don't feel I should be penalised because I don't feel it is morally right to pay them a huge sum to do what they should (can and will be) be doing any ways.

I know life isn't fair but I think all of us little guys should stand up against these umbrella companies, if you have to work 3 or 4 hours to pay their fee that is shocking.

Any advice warmly welcomed.
Elaine

InsideInsurance

What does the contract state? Presumably it is on the basis of using an umbrella in which case by opening negotiations on the contract you reopen negotiations on the offer.

elainewi

The offer letter is on the agencies headed paper, not the umbrella company which did have a different name.

It says rate per hour: £8, no mention anywhere any third party.

The contract also uses the agency name, and says the contract is between the agency and myself.

My OH and I have very carefully looked this over looking for any mention of the umbrella company by name or in concept or use the term "3rd party" OH is very good and finding "the catch" in small print. It does like they did listen about not being paid by the umbrella company.

I'm a bit too honest for my own good often, and don't want to shoot myself in the foot by ringing up to confirm the rate of pay, if it is going through at the rate of pay I thought I was signing up to.

I will of course have been there for two weeks before I find out if they feel they have 'made a mistake' with my offer letter - when I get my first pay packet.

What to you rate my chances of getting the advertised/offer letter rate of pay?

KiKi

Does the contract say £8ph? The letter and contract should be enough. They tried to pull a fast one, it didn't work. Sounds like it worked.

(BTW, an umbrella charging you £23 a week in your circumstances is having a laugh!)

KiKi

elainewi

Contact is just one of those "Standard Conditions of Employment of Temporary Worker" nothing specific about the assignment is actually in it, standard issue job. But the Offer letter is specific to the assignment.

scheming_gypsy

elainewi wrote: »

An offer letter and contract hit my doorstep this morning from the agency - not the umbrella group. It said my rate of pay is £8 written on the day I accepted the job. How binding is the figure in the offer letter? If they start paying me £7.50 an hour do I have a leg to stand on?

About as binding as a fog ribbon. You don't even have a job, they can tell you that they've retracted the offer.

I really want the job as it is something slightly different than what I have done before, but I feel misled by agent and don't feel I should be penalised because I don't feel it is morally right to pay them a huge sum to do what they should (can and will be) be doing any ways.

you're not paying them 'huge sums' as they won't be doing it any way. The umbrella company don't just do people's wages for free because they're nice. They do it because they get paid to do it, which is why there's a difference in wage the £7.50 is because the agency are doing your wages so they need paying to do it.

I know life isn't fair but I think all of us little guys should stand up against these umbrella companies, if you have to work 3 or 4 hours to pay their fee that is shocking.

Any advice warmly welcomed.
Elaine

warmly stick your "standing up to the umbrella companies" up your 'arris i like working through my umbrella company and taking every tax benefit possible.
Plus, if you have to travel an hour to work... why wouldn't you want to claim tax benefits on the cost of it?

scheming_gypsy

and in answer to the poll.. i chose yes.

My contract ends tomorrow, i'm paid £16.16 an hour for a 37.5 hour week, which is £606 a week. Out of that I pay £25 a week to the umbrella company and take home £531 after paying my employers and employees NI and income tax.