Unsigned timesheet as a contractor

Abacus_123

I have been working within healthcare as a clinician for a private company/provider contracted to the NHS since February 2024.

There have been occasional issues with payroll being late, and mistakes made with tax etc, but ultimately these issues have been corrected and up until now I have received everything owed, and my tax affairs have been clarified.

I am 'employed' by an umbrella company, that receive pay and confirmation from a recruitment agency, who then in turn receive pay/funds from the private company for hours worked.

I submitted a timesheet for my last week of work for the private company and also an invoice to the umbrella company, but the private company have refused to sign the timesheet. 

The recruitment agency tell me that they have enquired why it is has not been signed several times and received no further answer or correspondence from the private company. They have subsequently advised other contractors not to book any more shifts with the provider due to ongoing operational and pay issues, and safety issues, but it looks like it might be too late for me. 

For clarity, there is no dispute that I completed the contracted hours or worked to the required standard. The private company are simply refusing to sign my timesheet or engage any further. 

The recruitment agency state that they have no obligation to pay me without a timesheet, and the umbrella company say they have no obligation to pay me without authorisation from the recruitment agency.

Do I just need to accept that I won't get paid for these hours?

Many thanks.

Undervalued

Abacus_123 said:

I have been working within healthcare as a clinician for a private company/provider contracted to the NHS since February 2024.

There have been occasional issues with payroll being late, and mistakes made with tax etc, but ultimately these issues have been corrected and up until now I have received everything owed, and my tax affairs have been clarified.

I am 'employed' by an umbrella company, that receive pay and confirmation from a recruitment agency, who then in turn receive pay/funds from the private company for hours worked.

I submitted a timesheet for my last week of work for the private company and also an invoice to the umbrella company, but the private company have refused to sign the timesheet. 

The recruitment agency tell me that they have enquired why it is has not been signed several times and received no further answer or correspondence from the private company. They have subsequently advised other contractors not to book any more shifts with the provider due to ongoing operational and pay issues, and safety issues, but it looks like it might be too late for me. 

For clarity, there is no dispute that I completed the contracted hours or worked to the required standard. The private company are simply refusing to sign my timesheet or engage any further. 

The recruitment agency state that they have no obligation to pay me without a timesheet, and the umbrella company say they have no obligation to pay me without authorisation from the recruitment agency.

Do I just need to accept that I won't get paid for these hours?

Many thanks.

Interesting one!

In English law very few contractually agreed things have to be in writing, let alone signed, to be binding.

A contract simply requires offer and acceptance. Obviously, if that is not in writing it may be harder to prove in the event of a dispute but a verbal agreement is just as binding.

You cannot force somebody to sign something but you can, via legal action, take steps to recover money that is contractually owed.

I am not clear who should be paying you but your claim is against them. They may in turn have a claim against somebody else but that is not your problem.

LinLui

I agree with @Undervalued. I think the claim probably lies with the recruitment agency. The umbrella company are, in effect, "your accountant" - they have no control over the terms of the employment, which you agree with the recruitment agency. The agency do not dispute that you have given their client the information for the timesheet, and equally they have terminated dealings with the company because of the company failing to adhere to their terms (I assume you could prove this?). So I believe that your claim (and your only legal contract) is with the agency, and how or whether they get the money from the company is their problem. Of course, if the agency won't budge then you will have to take matters further, and then you might not get any further work with them. Only you know if that is a problem for you.

Grumpy_chap

I disagree with @LinLui based on my understanding of the contractual arrangements that are likely.

The contractual chain as I understand it would work is OP - Umbrella Company - Recruitment Agency - End Client.  The OP is employed under a contract of employment by the UC but the day-to-day contact is between the OP and the End Client.  The OP can only claim from their employer - being the UC - since the OP has no direct contract with the RA or End Client.

For practical purposes, rather than raising the unsigned timesheet via the Recruitment Agency and / or UC, can the OP query with anyone at the End Client, where the OP actually works?  If possible, a printed copy and placed under the nose of the day-to-day Line Manager at the End Client and provide them a pen as well might be the most effective way.

If there is an issue with the End Client approving timesheets and this is affecting others, then the UC and the RA ceasing work with that End Client, the OP has to consider how they stand for next week.

As the employer, the UC is responsible to the OP for payment of hours worked.  That may not be something the OP sensibly wishes (or is able) to pursue.

If the contractual arrangements are not as I has described, this post is largely irrelevant and can be ignored.  The important thing is the contract chain, not who the OP has actually liaised with.

MeteredOut

OP, you might also want to post your question over on https://forums.contractoruk.com/ where other people have been in a similar position before. 

Its largely IT contractors there, but the question is the same.

EDIT: Here's one thread: https://forums.contractoruk.com/accounting-legal/127632-help-client-won-t-pay-umbrella-company-and-umbrella-company-won-t-pay-me.html

DullGreyGuy

LinLui said:

I agree with @Undervalued. I think the claim probably lies with the recruitment agency. The umbrella company are, in effect, "your accountant" - they have no control over the terms of the employment, which you agree with the recruitment agency. The agency do not dispute that you have given their client the information for the timesheet, and equally they have terminated dealings with the company because of the company failing to adhere to their terms (I assume you could prove this?). So I believe that your claim (and your only legal contract) is with the agency, and how or whether they get the money from the company is their problem. Of course, if the agency won't budge then you will have to take matters further, and then you might not get any further work with them. Only you know if that is a problem for you.

Afraid thats totally incorrect @LinLui

You are the employee of the Umbrella company, it is exclusively the Umbrella company that sets the terms of your employment. Now naturally they are going to want to bring forward certain elements of the contract between the agency and themselves (eg payment frequency, notice period etc) but thats no different than any other contractual chain and if the umbrella wanted to take on credit risk in principle they could agree to pay you weekly despite them being paid monthly (as an example). 

Grumpy_chap said:
As the employer, the UC is responsible to the OP for payment of hours worked.  That may not be something the OP sensibly wishes (or is able) to pursue.

Most umbrella contracts state your salary is NMW, you then effectively get a bonus which is the delta of the fees received less employment expenses and an overhead. I'm sure the OP is hoping to be paid more than NMW for the hours they worked but given statutory employment protections it may be easier to argue than strictly needing a signed timesheet. 

MeteredOut said:

EDIT: Here's one thread: https://forums.contractoruk.com/accounting-legal/127632-help-client-won-t-pay-umbrella-company-and-umbrella-company-won-t-pay-me.html

In that case they had signed timesheets it was just the invoice wasnt being paid so as people said on that thread and as above the umbrella should pay the basic pay as per the contract (normally NMW). 

Outside of that it's credit control and one of the reasons that I'll never sign a "paid is paid" contract with a recruitment agency. 

Abacus_123

Thanks for all the replies and links - very useful

Subsequent to my initial post I have found out that another contractor was not paid a couple of months ago with the same circumstances, but the agency kept this quiet. 

A number of other contractors are now contacting me to say they also haven't been paid. The agency are ceasing work with the end client at the end of this month due to compliance issues but I think they'll be half a dozen of us out of pocket. 

As stated the contractual change is OP - Umbrella Company - Recruitment Agency - End Client

Again, many thanks for the replies and 'leads'