Umbrella company won't pay me

samus72 · 27-05-2009, 04:09 PM

I have been using an umbrella company for nearly a year now, however lately I have been having more and more problems. I notify them of my hours in plenty of time, but more and more often I find that I am not paid as usual. When I have called them they most often used excuse is that my agency has not paid them, so there is nothing they can do. This means that my pay is usually over a week behind through no fault of my own. I have demanded that they pay me but they say they cannot incur debts as it is not good practice. How is not paying me good practice in the first place? Is this standard practice amongst umbrella companies? Is there a code of conduct or law that states that I should be paid if I have provided all the information I can? If there is, what should I do to make them pay me on time?

Rob Crossland · 28-05-2009, 07:14 AM

It does not sound like good practice to be honest. A reputable Umbrella would not blame an Agency for the delay in payment and would be working hard on your behalf to solve the issue assuming that the issue is as stated.

Has there been a change in payment terms from the end-client to Agency? Have timesheet deadlines changed?

Does your payslip normally break down your income between say basic pay and bonus/commission etc?

Once you have established the root issue you should be able to get a more detailed answer from your employer. Whilst an Umbrella will not want to be over exposed to bad debt it is also the case that as an employee you are entitled to at least a minimum amount of wages. Without having more specific info (which may not be appropriate for a public forum) I am am afraid that the answer can only be generic.

samus72 · 28-05-2009, 09:34 AM

My agency pay on Friday if they have received an invoice on Tuesday. I always notify my umbrella company of my hours on Friday or at the latest on Monday. I have not been told of any changes to this. When I call on a Friday I'm just told that they haven't received any money. Should I call the agency and ask them what the problem is??

Rob Crossland · 28-05-2009, 10:11 AM

Quote:

Originally Posted by samus72

My agency pay on Friday if they have received an invoice on Tuesday. I always notify my umbrella company of my hours on Friday or at the latest on Monday. I have not been told of any changes to this. When I call on a Friday I'm just told that they haven't received any money. Should I call the agency and ask them what the problem is??

And I take it this is an existing arrangement that has previously worked?

I am reading your post thus:

1. You enter timesheet data on Umbrella systems on Friday/Mon
2. This would normally create an invoice to the Agency (unless self billing) and be with them that same day/next business day dependent on transmission (should be immediate tbh) e.g. Monday (if time entered Friday).
3. Agency reconciles invoice received against own/client time record.
4. Assuming no issues Agency pays by Wednesday (I am assuming they send Umbrella BACS payment)
5. Funds received by Umbrella on Friday (3 working days)
6. Umbrella reconciles and sends onward payment via BACS (assumption) on Friday - clears your account Tuesday.

That is of course a general idea of the process and again generally, there can be a week or so delay when you start as the above process kicks in, a bit like working a week in hand.

If an Agency is self-billing then they do not require an invoice and will raise an invoice in-house based on your timesheet data and send the monies on this basis to the Umbrella.

I know this is not specific but may assist in understanding and identifying in your scenario where the problem may lie.

Rob