Temp contract - notice period?

Notmyrealname

patman99 wrote: »

Just because someone works for an umbrella company does not mean they are avoiding NI.
My former colleague spent the first 6 months working through an umbrella company. He paid full NI so he could full benefits if he lost the job. Where he saved was on the Tax front. He worked-out how much it cost in running-costs to use his car for work, then got the umbrella company to pay this as traveling expenses with the rest being paid as hourly rate.

!!!!!!.

Try reading the words I wrote. I said THE AGENCY were avoiding paying EMPLOYERS NI, not the worker..

Emmzi

do you own the umbrella company?

would the umbrella compnay be causing the company they are contracted to provide a service to a loss when you stop work?

it is contract, not employment, law, that kicks in when looking at issues here.

zzzLazyDaisy

As Emmzi says, this is not an employment law issue.

If you have in fact signed a 6 month contract to deliver services, then you may leave yourself open to a breach of contract claim. On the other hand, it may be a day to day contract, with no notice requirement at all. It isn't possible for anyone here to tell you, as we can't see the contract paperwork.

InsideInsurance

Notmyrealname wrote: »

As they've done it through an umbrella company to save themselves employers NI and therefore count you as self employed.

The very idea of an umbrella company is so you are NOT self employed.

You aren't an employee of the client but you are an employee of the umbrella.

Yes the client doesnt directly pay Employers NI but a contractors rate can be 3 times (or more) that of an employees and so it is rarely a saving to have contractors. The Umbrella company does pay employers NI as well as having you on PAYE so deducting your employee NI and income tax.

wanttoleave

zzzLazyDaisy wrote: »

As Emmzi says, this is not an employment law issue.

If you have in fact signed a 6 month contract to deliver services, then you may leave yourself open to a breach of contract claim. On the other hand, it may be a day to day contract, with no notice requirement at all. It isn't possible for anyone here to tell you, as we can't see the contract paperwork.

I haven't signed any contract with the agency or the company I'm currently working for - there is no paperwork, other than an email from the agency confirming my start date, duration of contract offer and daily pay rate.

I *do* have a signed contract with the umbrella company which pre-dates my current contract (I became an employee of the umbrella company in January when I started my last temp contract. My current temp contract began in April). My contract with the umbrella company states regarding termination:

"You may not terminate your employment until any current Client Assignment can also be lawfully terminated by us. You may not terminate a Client Assignment without also terminating your contract of
employment, without our written agreement. Subject thereto, this employment may be terminated by written notice as follows:

During the first month, either by you or by us with immediate effect

Until you have achieved two years continuous employment, by either you or by us, by one week’s notice

Thereafter, by either you or by us, by one week’s notice for each year of continuous em-ployment, up to a maximum of twelve weeks; "

It's this bit "You may not terminate your employment until any current Client Assignment can also be lawfully terminated by us." that is confusing me a bit.

getmore4less

What they are saying is statutory notice apply for them to give you notice and the same terms apply to you

BUT.

notice canot be given that will end before a current client assigment can end.
SO the notice to end an assignment overides the notice for service.

wanttoleave

Thank you - that makes sense! I haven't been given any notice requirements/details for the current client assignment - so how do I know what the notice to end the assignment would be?

zzzLazyDaisy

Ask the umbrella company that gave you the contract

princessdon

This is why it can pay at times to go with one of the top brolly's. Yes fees can be higher, but the contract IME has been there same day from the client. In addition they are truthful about reclaiming expenses, chase your VAT petrol receipts within a day of submission and generally - errm do what you pay them for.

I always laugh when they promise take home pay of 85% and you are inside IR35.

wanttoleave

princessdon wrote: »

This is why it can pay at times to go with one of the top brolly's. Yes fees can be higher, but the contract IME has been there same day from the client. In addition they are truthful about reclaiming expenses, chase your VAT petrol receipts within a day of submission and generally - errm do what you pay them for.

I always laugh when they promise take home pay of 85% and you are inside IR35.

Interesting ... I was originally given a list of umbrella companies to choose from (that the recruitment agency had agreements in place with) - there were only 5 or so on the list. I had assumed they were all pretty much the same!

I didn't know they were meant to send me anything contract-wise for my client assignments though! This is my second assignment with them and I've had nothing other than my standard employment contract (with the umbrella) at the start.

So it would be reasonable for me to ask them for a copy of the contract/agreement they have in place with the recruitment agency regarding my current client assignment?