agency paying 4 weeks in arrears

sangie595

getmore4less wrote: »

Have you ever see an umbrella contract?
.

Yes, I have thank you. They are common in the public sector for contractors. For tax purposes, you may be considered an employee - but in reality you are self-employed. It's a tax dodge and nothing more. You have no power to claim unfair dismissal ever, under any circumstances, because the umbrella company only "employ" you on a taxation basis. You similarly cannot claim against the agency or the client. The agency agrees terms with the employer, and contract the work to you, thus avoiding any responsibilities for themselves. They pay you though a third party umbrella company, for whom you pay the employers NI as well as your own because you don't really have an employer - it is all a fiction . And the tax benefits for the individual are often much overstated.

Nevertheless, the OP is in a contractual relationship. It specifies payment in arrears . The cannot simply change that because they now want to. If they were unhappy with the contractual terms, the time to raise that was before they agreed to the contract, not after.

wheelz

I asked my umbrella company and they said it's the agency. I have read the one document I have from them and it's not in there. Asked agency, contact wasn't sure, had to check. Everyone advised me to set up as a ltd company but I was only trying out contracting so had to see whether I wanted to continue. I don't. It's the best option when starting contracting. I have friends that contract and a handful of them recruit contractors. It is in my interest to recognise a good agency and I won't recommend these to anyone. Especially now I know that other agencies in my field do pay you after a week. As I said nothing in contract about it, so why would I not assume a weekly time sheet means being paid after a week. I have just gone with an agency that wasn't good and I won't recommend it. If I have to come back to contracting it won't be with them. As far as I know you make a lot more money through being a LTD company because of tax advantages. Can't see why the umbrella would be the worst of the two as you describe them. Anyway this is clearly not the right place to come for these kind of queries.

ScorpiondeRooftrouser

wheelz wrote: »

When you leave a permanent job you're not being paid weeks after you have left. It doesn't make sense.

Yes you are. Up to a month quite routinely, depending on when you leave compared to the salary date. They don't give you cash on your final day in proper jobs.

getmore4less

sangie595 wrote: »

Yes, I have thank you. They are common in the public sector for contractors. For tax purposes, you may be considered an employee - but in reality you are self-employed. It's a tax dodge and nothing more. You have no power to claim unfair dismissal ever, under any circumstances, because the umbrella company only "employ" you on a taxation basis. You similarly cannot claim against the agency or the client. The agency agrees terms with the employer, and contract the work to you, thus avoiding any responsibilities for themselves. They pay you though a third party umbrella company, for whom you pay the employers NI as well as your own because you don't really have an employer - it is all a fiction . And the tax benefits for the individual are often much overstated.

Nevertheless, the OP is in a contractual relationship. It specifies payment in arrears . The cannot simply change that because they now want to. If they were unhappy with the contractual terms, the time to raise that was before they agreed to the contract, not after.

I am looking at the contract of employment I got and it seems to have the things necessary to make me a employee in employment law and those that HMRC would want.

starting with
This agreement is a contract of employment between you and us, and your permanent workplace is our offices
others like
as a commission earning employee ......

sets out minimum contractual hours,pay, holiday pay, pensions, obligations to come to the office and meet other demands of the employer.
also a set of company policies and procedures including disciplinary procedures (those go far beyond only an employee for tax purposes)

sangie595

getmore4less wrote: »

I am looking at the contract of employment I got and it seems to have the things necessary to make me a employee in employment law and those that HMRC would want.

starting with
This agreement is a contract of employment between you and us, and your permanent workplace is our offices
others like
as a commission earning employee ......

sets out minimum contractual hours,pay, holiday pay, pensions, obligations to come to the office and meet other demands of the employer.
also a set of company policies and procedures including disciplinary procedures (those go far beyond only an employee for tax purposes)

Interesting - I have not seen one like that. Because that would suggest that you could sue for unfair dismissal, when clearly the umbrella company cannot dismiss you because they have utterly no control over your continued employment - the only person who has that control is yourself. You look for your contracts, you make the agreements with your clients, and actually the umbrella company cannot tell you where to work from (although your client can do so). It sounds an insane contract. More like one of the Swedish derogation agency contracts than an umbrella company!

wheelz

Apology received from agency, should have made it clear in the beginning that I was going to be paid after 30 days. After a week is an option with this agency. I never saw the 30 days agreement as it's between the agency and umbrella co. The agreement/contract I got from the umbrella co does not include details like that. I understand that some umbrella cos are better than others and they give the contractor a copy. Also looks like the standard for local government contractors is to be paid after a week. One agency even said that this was the case even though I wasn't asking for that information just wanted to find out what other agencies do.

wheelz

ScorpiondeRooftrouser wrote: »

Yes you are. Up to a month quite routinely, depending on when you leave compared to the salary date. They don't give you cash on your final day in proper jobs.

Have over 25 years of experience in proper jobs (local government mostly but not all), that is my experience. My first job they even deducted money as I had taken too much leave, but hey you clearly know better. But everything gets settled before you leave not up to 4 weeks after.