Furlough for Umbrella Workers Still no Answer

NickyDietrich

There is still no clarity from the government allowing Umbrella companies to furlough their employees. There are two issues: Will the government pay 80% of the day rate or 80% of minimum wage and will the JRS include holiday pay? There have been no answers with this since 8th April 2020. That is three weeks ago. We have been in lockdown for over 5 weeks now with no idea of if, what or when we are going to get paid. When will the government next be considering this issue? 

daKlone

It's slow going

Martin does seem to be chipping away at it though...

https://www.moneysavingexpert.com/news/2020/04/employed-help-coronavirus-furlough/#chink

mrssd

My OH works for an agency and, when he joined, he was never shown any contract or advised that it was an umbrella company that run the payroll.  When his 5 month contract through the agency was stopped after a few weeks because of Covid-19, the company he was contracted to sent an email to the agency stating they would have him back as and when they had clearance to do so.  The agency said they would put him on furlough, but the umbrella company said they (umbrella) were his employer and it was up to them to decide whether he would be placed on furlough .  They did agree to do so, but many phone calls, emails etc later (5 weeks) and no resolution.  It is a waste of time phoning the umbrella companies:  They either don't answer, or say they will phone you back tomorrow with definite news.  Same with the agency.  They never do.

They take a huge lump from his wages and call it "commission" when the reality is that they pay him basic and out the rest aside into an area of their reconciliation statement, which is with the wage slip, that they call "reconciliation statement".  The wage slip is extremely difficult to understand and surely, if they are putting money aside that has already been earned, then they should - in theory - be paying interest on it to the employee and not to themselves!  I have no doubt that there are some good umbrella companies out there, but the whole industry needs a careful examination by the government.

Financially - with careful management - we can keep our heads above water for perhaps another week or so, but beyond that I have no idea. My main concern though is for my husband who is showing signs of depression, which is something he has never had.

daKlone

This is common practise amoung umbrella companies and it has lead to many, many of their employees either not being furloughed at all, or having their payments calculated at 80% of minimum wage.

I feel your pain as I am in the same boat. Keep your collective chins up, get online and see if you qualify for any benefits. If you can, look at taking payment holidays. Good luck!

mrssd

Apologies for not getting back to thank you sooner: Blasted router!
Fortunately, we have no debts and our mortgage is paid off.  We are trying to survive on my State Pension alone (OH is younger than me:>) ), but - after paying for essentials (utilities, council tax, internet etc) there is not a lot left for food.  However, I do have a fairly well-stocked "Brexit" larder of dried and tinned goods, which - although not exciting - would sustain us for a month at least. 

One thing I did find out today is that I would definitely be eligible for Attendance Allowance, so I have filled out the form and sent it with copies of consultants' letters which I have, although I understand it can take up to 8 weeks.   We have never claimed any kind of benefits in our lives, so it is all new to us!  What this whole Covid-19 has taught us both is that there is help out there and a lot of people are either not claiming it, or indeed, getting it in a timely fashion.  My heart goes out to those who are really struggling on Universal Credit and those with children stuck in flats with no gardens.  

daKlone

No worries

Glad to hear things aren't too bad at the moment. It might be worth talking to your utility companies though, I got a 3 month payment holiday from mine, even though my account was not in credit (just after the winter, of course!).  I'm very much looking at surviving the next few weeks, if it costs more in the end then that's just the way it'll have to be.

But while things aren't great for us, I know they are worse for a lot of others. That's why I keep popping in and trying to help in some small way.