Help! Can I not go for the chosen umbrella company and choose my own instead?

peter_parkerrr · 01-11-2010, 12:42 AM

Hi,

Hope someone here will be able to help me with this query. I only entered the job market a few months ago and have never done any paid work before. I found a temp assignment via a very well-known major recruitment agency last week. They have a partnership (or something similar) with an umbrella company.

However, after doing some research, I don't think I want that particular umbrella co to look after my pay. Can I choose another umbrella co or am I obliged to go with the one the recruitment agency assigns since they found me a job?

I'll really appreciate any input from anyone in the know!

Thanks!!

ee61re · 01-11-2010, 06:54 PM

You are not normally obliged to use their 'pet' umbrella company, no.

Find one you like, and tell the agency you are using them.

They may get upset and tell you its not possible, they may tell you that your umbrella is not on their Preferred Suppliers List (PSL), etc.

If you are firm with them, they will normally find a way to make it work.

TheFear · 02-11-2010, 10:32 AM

Quote:

Originally Posted by peter_parkerrr

They have a partnership (or something similar) with an umbrella company.

This usually means that the agency receive some sort of financial incentive for passing you their way.

Providing you stick to straight PAYE umbrella companies (not offshore & EBTs) there's no reason why you can't work through ANY umbrella company on the market. After all, there's no Managed Service Company or transfer of debt risk so there shouldn't be a problem.

If the agency insists that you work through their chosen umbrella, ask them precisely why this is the case. If they mention anything other than kick backs or commission then they're lying through their teeth!

Good luck :-)

peter_parkerrr · 03-11-2010, 08:05 PM

Thanks guys for your advice! They really helped in terms of arming me with more info. I finally managed to choose one and went back to my agent and she said she can't go with it but there is a list of umbrellas that I can choose from. So in the end I did some research again on those that she provided and picked one. I hope it's not going to be too painful from now on.

Thanks again!

lurch · 05-11-2010, 11:02 AM

Quote:

Originally Posted by TheFear

If the agency insists that you work through their chosen umbrella, ask them precisely why this is the case. If they mention anything other than kick backs or commission then they're lying through their teeth!

In my experience I'd say it would be strange nowadays for there not to be some sort of commission involved with or without PSLs, but I would also say that there is a lot of compliance and solvency checking that goes on to get on a list.

Whether the checking is actually worth anything is entirely another matter though, depends on who's been giving agencies their advice.

Some of the commission payments being offered at the moment are truly insane, although it seems most agencies aren't basing it all off the money (we've been selected over other agencies paying considerably more).

WYSIWYG · 09-11-2010, 08:36 AM

This is an interesting discussion. When I considered using an offshore scheme, my agency point blank refused to even entertain the idea of working with me. They effectively gave me 3 options. 1 PAYE at the agency, 2. PAYE umbrella or 3. My own limited company.

With the umbrella option, they did give me a list of companies to contact but were very clear that I was able to work with any PAYE umbrella out there.

Iain