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@pay between assignment' contract with umbrella company vs new expenses law.

Hi,

First time posting here, but I'm hoping somebody could offer some guidance.

I currently have a full time job with a reputable company, via and employment agency, and an umbrella company. When I originally signed the contract, a 'selling point' that was really pushed onto me was that we would be able to claim some tax releif on mileage to and from work, and for meals bought whilst on shift.
They used this offer to persuade me to sign a 'Pay Between Assignments' contract, which was not explained to me at all at the time. I now know, after having worked there for a while and wondering why I wasn't getting the usual treatment I had from agencies in my previous 2 jobs, that this contract has waived my right to fair treatment and fair pay. I am not entitled to the same pay as permanent staff, nor am I entitled to additional holiday that they are, and I also get no extra for working bank holidays, or any time off in leue.

The law changed in april to remove the ability of umbrella companies to allow their workers to claim expenses. And I am therefore now approximately £40 - £50 worse off per week depending on my shift pattern.

I can accept that, I understand there's no likelihood of the law changing back so I'll just have to take it on the chin.

So my thoughts/questions now are:
- Should they have explained the implications of such a contract to me, or is it my fault for not questioning the smallprint?

- Should they have used the expenses 'perk' to sell the contract to me?

- Should they be offering me anything to make up for the change in pay?

- Can I use this as grounds to renegotiate my contract to attempt to get on a standard contract?

- Am I peeing in the wind trying to get out of this?

I've spoken to my line manager, and he (and everybody else on my shift) agree that the agency are treated very badly considering the stress involved in the job. He is unable to do anything about it, so I have contacted the next manager up, but am yet to hear back.

There's no permanent positions available for at least 12months, but my agency contract is confirmed to be lasting at least that long.

As a bit of background, I left a well paying job and moved 5 hours away for this job. The shift pattern is brutal, but it was originally worth it for the pay. Now I'm earning £5 per week more than I was in my old job, and that was an easy 9-5 mon-fri.

To me this has hit like a stealth pay cut and if theres nothing I can do about it, I'll have to consider going grovelling for my old job back and move 5 hours back down the country again.

thanks in advance

Comments

  • sangie595
    sangie595 Posts: 6,092 Forumite
    Hi,

    First time posting here, but I'm hoping somebody could offer some guidance.

    I currently have a full time job with a reputable company, via and employment agency, and an umbrella company. When I originally signed the contract, a 'selling point' that was really pushed onto me was that we would be able to claim some tax releif on mileage to and from work, and for meals bought whilst on shift.
    They used this offer to persuade me to sign a 'Pay Between Assignments' contract, which was not explained to me at all at the time. I now know, after having worked there for a while and wondering why I wasn't getting the usual treatment I had from agencies in my previous 2 jobs, that this contract has waived my right to fair treatment and fair pay. I am not entitled to the same pay as permanent staff, nor am I entitled to additional holiday that they are, and I also get no extra for working bank holidays, or any time off in leue.

    The law changed in april to remove the ability of umbrella companies to allow their workers to claim expenses. And I am therefore now approximately £40 - £50 worse off per week depending on my shift pattern.

    I can accept that, I understand there's no likelihood of the law changing back so I'll just have to take it on the chin.

    So my thoughts/questions now are:
    - Should they have explained the implications of such a contract to me, or is it my fault for not questioning the smallprint?

    - Should they have used the expenses 'perk' to sell the contract to me?

    - Should they be offering me anything to make up for the change in pay?

    - Can I use this as grounds to renegotiate my contract to attempt to get on a standard contract?

    - Am I peeing in the wind trying to get out of this?

    I've spoken to my line manager, and he (and everybody else on my shift) agree that the agency are treated very badly considering the stress involved in the job. He is unable to do anything about it, so I have contacted the next manager up, but am yet to hear back.

    There's no permanent positions available for at least 12months, but my agency contract is confirmed to be lasting at least that long.

    As a bit of background, I left a well paying job and moved 5 hours away for this job. The shift pattern is brutal, but it was originally worth it for the pay. Now I'm earning £5 per week more than I was in my old job, and that was an easy 9-5 mon-fri.

    To me this has hit like a stealth pay cut and if theres nothing I can do about it, I'll have to consider going grovelling for my old job back and move 5 hours back down the country again.

    thanks in advance

    I'm afraid it sounds like it will have to be grovelling. I can see no reason at all why the agency would want to now change the terms. Unfortunately it is your responsibility to understand the law, or to inform yourself on it - and the implications of the Swedish derogation (that's the get out clause the agency have used to prevent you getting the same terms) on agency worker regulations are widely available on the internet if nowhere else. And, to be fair, the changes to umbrella taxes may not have been known to the agency staff - and would have been true at the time you were told this anyway.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    I thought the point of umbrella was to become a PAYE employee and bypass all the agency rules as your contract is with the Umbrella and you are just sub contacted out on a B2B contract for services to the end employer.

    The expenses thing was always dodgy as you needed to be going to multiple customers sooner or later to qualify for those.(not sure how these new rules you talk about effect that)

    All your pay comes from the money you earn for the umbrella so it needs to be at least 25%+ any margin charges more than the normal PAYE rate(just cover the holidays and the employer NI) and preferably much higher more like contract rates, 100% more.

    If they are doing a pay when not working are they holding back money to pay that further reducing your take home?
    That should be paid back when you finish.

    You might have been better ltd but chances are the agency has a backhander deal with the umbrella if you were not able to choose one or go ltd.

    The other issue there will be the clauses making it uneconomical to try to contract any other way with this company now.
  • Thanks both. I was originally on a 6 month contract, which was then renewed, I feel they knew at the point of renewal, but I didn't read about the changes till afterwards.

    As I understand it, the pay when not working only covers 50% of my current pay, for a short period, I think it's two weeks. So effectively one weeks pay. I lost more money than that for working all of Christmas and new year and not getting the time-and-a-half, double - time, and toil that my coworkers got.

    I have the option to go Ltd through the umbrella, but I'm not familiar enough with the concept to feel confident to do it. Although it would potentially be beneficial for the part time work I do (trade event logistics and car restoration)
    The umbrella charges for Ltd services are £120 per month, whereas their current margin fee is £60 per month
  • Thanks both. I was originally on a 6 month contract, which was then renewed, I feel they knew at the point of renewal, but I didn't read about the changes till afterwards.

    As I understand it, the pay when not working only covers 50% of my current pay, for a short period, I think it's two weeks. So effectively one weeks pay. I lost more money than that for working all of Christmas and new year and not getting the time-and-a-half, double - time, and toil that my coworkers got.

    I have the option to go Ltd through the umbrella, but I'm not familiar enough with the concept to feel confident to do it. Although it would potentially be beneficial for the part time work I do (trade event logistics and car restoration)
    The umbrella charges for Ltd services are £120 per month, whereas their current margin fee is £60 per month
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