A scam or just an odd company?

zachzote

I've recently applied for a job through an agency, and was advised that the company needs it's employees to set up their own business so that the company can pay us.

I know it sounds odd and very suspicious.

I was referred to 360-group dot com for the Umbrella service - and yes, it costs a staggering £27.50 per week. That's just under £1,400 a year.

I have not seen this anywhere before, so I immediately thought "scam".

However, it seems likely that there must be a legitimate need for the type of service that 360 are providing. I just don't know what it is.

Maybe the company I want to work for has an under-staffed payroll department? Or no payroll department at all (to save money?)?

I don't get it.

I've got to pay someone to pay me... which I suppose if this is legit, won't be a problem as I'd still be on approximately £5k more than my last role after paying 360.

Another thing about this arrangement is that if I choose to have paid holidays, I'd get less per annum, but if I choose to have unpaid holidays, I'd get more per annum.

So... I get the same money either way, it's just worked out differently? What's the benefit of doing it one way over the other? So I can have a higher number on my wage slip?

I'm not getting the "scam" vibe from 360's site, it looks and feels professional and there is indeed a service to be used from them. I'm just wondering if I'm being duped.

I've tried doing some research on Google but how do you explain this to a search engine and get accurate results? "Employer wants me to be self employed so they can pay me" isn't the most search -engine-friendly term!

I was told that there are twelve employees at the company who are paid like this.

So, do my rights change as a 'self employed employee', over that of an... employed employee? :rotfl:

I don't want to go into this and find that I can be sacked any time with no fail-safes, or be ripped off financially by some small terms and conditions or caveats.

Please can anyone shed light on this?

thanks

agrinnall

This has been a pretty common method of working in IT for many years, using an umbrella company like 360 is an alternative to a contractor setting up a limited company. For IT contracts the costs were not unreasonable due to the relatively high rate being paid. Whether it's appropriate to the work that you are looking it is difficult to tell from the information given, it would usually only be applicable if you have a contract with the company for a specific period of time. If they are looking to take you on indefinitely then it is more likely to be regarded as employment and they could just be trying to pull a fast one.

zachzote

Thanks. The job states it's a permanent role, for an IT administrator. Hmm...

bitsandpieces

No idea whether the 360-group or the job in question is a scam, but umbrella companies do have genuine uses. Some contractors get paid through umbrella companies - don't know much about it, but I think it can give some tax advantages (and may save the company hiring you money). If you're genuinely self-employed, though, you won't have the same rights as an employee automatically would; the company paying you can choose to contract to give you lots of great benefits and long-term security, but doesn't have to do so (in the current climate, this would seem unlikely )

On the other hand, even as an employee, the employer can fire you for pretty much any reason (so long as it falls outside certain types of discrimination) in the first year, so your rights then might not be so great either.