Temp agency - scam or legal?

hunsen

Hi,
For ten weeks, I worked for an agency between jobs. I had a short interview and application process, where I was informed verbally that the pay rate was £10 per hour. I started work the next day.

A few days later I got a letter and contract from a seperate "payroll company", which I believe is also called an umbrella company.

When I got my first weekly wage slip, I was surprised to see the following;

- £20 deduction for the payroll company
- EMPLOYERS NI contributions (charged to me)
- the £10 per hour pay rate was made up of basic pay PLUS holiday pay at 12.5%

Plus of course, my own tax and NI contributions.

My first week was a part week and as a result of these deductions, my hourly rate was less than the minimum wage.

My total loss is excess of £1,400 in ten weeks (made up of difference between quoted and actual pay rate, employers NI, weekly £20 charge and refusal to process expenses - a seperate issue).

Does anyone have any advice? Currently I am working with ACAS who will approach the payroll company - but I'm not totally clear who I even worked for.

Thanks

JCS1

legal, but it should have been better explained to you. You were in effect self employed, so NMW doesn't apply.