Getting paid by an agency...stoppages (theft?)

Ive just did three days construction work for an agency and received my pay ,payment is under a "Payroll Umbrella Scheme" it appears the agency uses another agency to make wage payments.

I was stopped £18.00 for the payment agency's "margin" and also paid my employers part of the NI at £19.00
, so I feel was wrongly stopped a total of £37.00 , multiply this by 52 weeks it amounts to £1924.00!

Ive asked for an explanation and had these replys :

"The margin is retained each week. Within Umbrella payroll scheme the employers NI is factored into your hourly rate and your hourly rate is inflated taking this into consideration. If the agency was able to pay you directly as straight PAYE your hourly rate would be less."

"Contracting companies like ourselves will retain a margin for making payment to you. We also process expenses for you weekly to allow you a tax free element within your payment as per Umbrella payroll scheme."

The £18.00 XYZ Ltd margin is the margin we retain for making payment to you. This covers the admin costs of registering you, processing weekly payment, bank charges, providing weekly payslip, weekly payment reporting to HMRC and providing P45 and P60 information. We also have insurances in place which you can work under when you are working for us."



I assume this must be legal?
 
D

Deleted 20555

Guest
If you are being paid on a weekly basis NI only kicks in after 150.00 is paid - 19.00 sounds roughly right if you took home 250.00 or more for three days work.

The 18.00 is at their discretion and should have been noted in your contract - it is however a bs charge aqnd you should get another agency.
 
Ive just did three days construction work for an agency and received my pay ,payment is under a "Payroll Umbrella Scheme" it appears the agency uses another agency to make wage payments.

I was stopped £18.00 for the payment agency's "margin" and also paid my employers part of the NI at £19.00
, so I feel was wrongly stopped a total of £37.00 , multiply this by 52 weeks it amounts to £1924.00!

Ive asked for an explanation and had these replys :

"The margin is retained each week. Within Umbrella payroll scheme the employers NI is factored into your hourly rate and your hourly rate is inflated taking this into consideration. If the agency was able to pay you directly as straight PAYE your hourly rate would be less."

"Contracting companies like ourselves will retain a margin for making payment to you. We also process expenses for you weekly to allow you a tax free element within your payment as per Umbrella payroll scheme."

The £18.00 XYZ Ltd margin is the margin we retain for making payment to you. This covers the admin costs of registering you, processing weekly payment, bank charges, providing weekly payslip, weekly payment reporting to HMRC and providing P45 and P60 information. We also have insurances in place which you can work under when you are working for us."



I assume this must be legal?

Serves you right for working for an agency. Get your own advertising out there, it's not hard.


And check your contract. It's either in there or it's not.
 
Ive never worked for anyone before , always self employed or a director so its all new , my payslip is attached.
 

Attachments

@CptDanjou - it may not be obvious but I fučking detest agencies. Self serving robbing bastards the lot of them.
 

The_Duke

LE
Moderator
Running the admin side of paying you costs someone money. Either the person you did the work for pays it (and therefore pays you less) or they palm it off to the agency, who charge for it. They can charge the person who you do the work for (and thus they reduce your daily rate accordingly) or they take it off your top line.

The only issue here is the terms of the agency contract you are working under. You did read it carefully, didn't you?
 
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Deleted 20555

Guest
Also make sure that they are using the correct tax code - it should be on your payslip - 1100L is normal. This means tax will kick in after you are paid 250.00 each week and then at 20%.

edit - just seen payslip, another trick - if you remain with same agency is not to get paid holiday pay unless you request it - it can drop you below the 250.00 threshold for the weekly pay so you don't pay tax, it runs at 12.5% of your pay and you can request it to be paid when you are either are on holiday or when work is short.

I usually keep it ticking over and take 20 hours when I feel like a week off or go on holiday.

I am sure they are charging their client far, far more than your hourly rate - their admin fees should come out of that charge and not be to you.
 
Running the admin side of paying you costs someone money. Either the person you did the work for pays it (and therefore pays you less) or they palm it off to the agency, who charge for it. They can charge the person who you do the work for (and thus they reduce your daily rate accordingly) or they take it off your top line.

The only issue here is the terms of the agency contract you are working under. You did read it carefully, didn't you?
Contract was 10 pages of legal waffle so no , the only aces I hold are I can afford to give them two fingers and theres also a good chance I can work direct on a self employed basis now Ive proved myself.
 

Switchback

War Hero
Contract was 10 pages of legal waffle so no , the only aces I hold are I can afford to give them two fingers and theres also a good chance I can work direct on a self employed basis now Ive proved myself.
Not reading the legal waffle bit is what lets them do what they've done, and you be surprised about it.
 
Not reading the legal waffle bit is what lets them do what they've done, and you be surprised about it.
True but I`m not taking this work too seriously , its filling in time with something constructive and makes me a bit of extra cash whilst I`m setting up something else .
 
Also make sure that they are using the correct tax code - it should be on your payslip - 1100L is normal. This means tax will kick in after you are paid 250.00 each week and then at 20%.

edit - just seen payslip, another trick - if you remain with same agency is not to get paid holiday pay unless you request it - it can drop you below the 250.00 threshold for the weekly pay so you don't pay tax, it runs at 12.5% of your pay and you can request it to be paid when you are either are on holiday or when work is short.

I usually keep it ticking over and take 20 hours when I feel like a week off or go on holiday.

I am sure they are charging their client far, far more than your hourly rate - their admin fees should come out of that charge and not be to you.
Sounds like you are doing what I want to do , work when I feel like it.
I`m going to approach the employer next week and offer to work for them self-employed then give two fingers to the agency and the payment agency.
 
D

Deleted 20555

Guest
Sounds like you are doing what I want to do , work when I feel like it.
I`m going to approach the employer next week and offer to work for them self-employed then give two fingers to the agency and the payment agency.
I took early retirement when I hit 55 and couldn't be arsed putting up with blue chip big pharma - I work 2-3 days a week doing building management - I say work but mainly sort out minor problems and organise contractors - otherwise read my book, have lunch and study a bit - I've stayed with an agency because it's just easier.

The employer might have signed an agreement not to employ anyone directly introduced to them by the agency - so be careful there - I have a number of sites where I've been offered full time jobs after contracting but it's always been initiated by the employer with it being agreed that the agency would take a introduction fee.

It's difficult to offer advice but perhaps it would be an idea to keep this agency and find a second or even third so that you get to work on more sites and make more contacts.
 
Sounds like you are doing what I want to do , work when I feel like it.
I`m going to approach the employer next week and offer to work for them self-employed then give two fingers to the agency and the payment agency.
It's likely that you, they or you both are contractually obliged to include the agency somehow. In fact, it's almost certain.

Typically (at least for truckers) this means a period of 13 weeks employed by the agency before going on the books with the employer.

Or the payment of a finders fee of some kind.
 
I took early retirement when I hit 55 and couldn't be arsed putting up with blue chip big pharma - I work 2-3 days a week doing building management - I say work but mainly sort out minor problems and organise contractors - otherwise read my book, have lunch and study a bit - I've stayed with an agency because it's just easier.

The employer might have signed an agreement not to employ anyone directly introduced to them by the agency - so be careful there - I have a number of sites where I've been offered full time jobs after contracting but it's always been initiated by the employer with it being agreed that the agency would take a introduction fee.

It's difficult to offer advice but perhaps it would be an idea to keep this agency and find a second or even third so that you get to work on more sites and make more contacts.
Wouldnt that be illegal restricting who could employ me ?
 
D

Deleted 20555

Guest
Wouldnt that be illegal restricting who could employ me ?
Not if they signed an agreement with the agency not to employ privately contractors who were introduced to them by the agency.

I wouldn't be surprised if it's also somewhere in your contract.
 
Wouldnt that be illegal restricting who could employ me ?
we can 'buy' agency staff from the Agency if we want them to come over to the dark side properly. The other option is they quit, and come back in 6 months
 
Not if they signed an agreement with the agency not to employ privately contractors who were introduced to them by the agency.

I wouldn't be surprised if it's also somewhere in your contract.
It certainly was when I was IT contracting, I think the buy out fee was around one months salary - around 5k.

If you're with Parasol, I feel for you bro'. Utter robbing b'stards.
 
Not if they signed an agreement with the agency not to employ privately contractors who were introduced to them by the agency.

I wouldn't be surprised if it's also somewhere in your contract.
I may go limited in the near future so the end employer would be paying ABC Ltd instead of CptDanjou so I guess that would get around that in just as a sneaky way as the agencies operate.?
 

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