Company gone into administration
Company gone into administration
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Discussion

matlee

Original Poster:

777 posts

180 months

Thursday 4th April 2013
quotequote all
Over the last 4 weeks ive done 11days work for this particular company.

I work for them through an agency.

Today i discovered that the company (not the agency) has gone into administration. What are the chances of me getting these 11days pay? I was due to put the timesheets for the work in this coming monday.

randlemarcus

13,646 posts

260 months

Thursday 4th April 2013
quotequote all
Theoretically, you should be paid by the agency, and it's their issue beyond that. Practically, you are probably a bit screwed. Speak to the agency now.

Eric Mc

125,606 posts

294 months

Thursday 4th April 2013
quotequote all
Who is your employment contract with?

I guess it's the agency.

Therefore, the agency is legally contracted to pay you for the work you did.

The company that has gone into administration is a customer of the agency. If they owe money to the agency, that is the agency's problem, not yours.

matlee

Original Poster:

777 posts

180 months

Thursday 4th April 2013
quotequote all
Thanks for the swift responses guys.

Im in the process of looking through the agreement but im sure the contract i have is with the agency.

Ive just spoken to the agency and the agent i deal with just happens to be off this week! I managed to get hold of him and from what i can gather no one actual knows whats happening at the moment, they are all waiting for meetings and talks etc.


worsy

6,594 posts

204 months

Thursday 4th April 2013
quotequote all
Need a bit more on your relationship with the agency. Are you opted in or out of the agency conduct regs and if out did they introduce you to the client before you opted out?

matlee

Original Poster:

777 posts

180 months

Thursday 4th April 2013
quotequote all
Ive never been given the option of opting in or out. I registered with the agency in early 2011 and they have provided me with work since, Site Management in the retail construction sector. Never have i been introduced to the client either, its just been a case of 'you are wanted on this site in this location etc'

I am paid through an umbrella company.

What now makes things more awkward is that the people who i need to sign off my work/time sheets have all been laid off!

Eric Mc

125,606 posts

294 months

Thursday 4th April 2013
quotequote all
Why use an umbrella company when you are working through an agency?

Hughesie

12,790 posts

311 months

Thursday 4th April 2013
quotequote all
Eric Mc said:
Why use an umbrella company when you are working through an agency?
Tax reasons, common place these days...

Eric Mc

125,606 posts

294 months

Thursday 4th April 2013
quotequote all
Hughesie said:
Eric Mc said:
Why use an umbrella company when you are working through an agency?
Tax reasons, common place these days...
I know that. But what are the tax advantages that can be gained by paying an agency worker trough an umbrella company. What are they saying they are paying to the individual that allows them to reduce the associated PAYE and NIC.

I am an accountant and I know that by recategorising income as something other than wages, a tax and NI advantage may be obtained. How does this work for a simple contracted employee. What are they claiming the payments to the individual to be.

matlee

Original Poster:

777 posts

180 months

Thursday 4th April 2013
quotequote all
Another quick question guys, if i determine that i am employed to the agency are they legally oblige to pay me even though they are fully aware of the clients situation and the chance of them getting the money back may be slim?

Eric Mc

125,606 posts

294 months

Thursday 4th April 2013
quotequote all
The normal answer should be "yes".

But who knows what types of complicated get-out clauses are set in the terms and conditions in the modern world. The fact that the agency you are with have off-loaded you into an umbrella company probably complicates the matter even further.
People sometimes don't realise how much they are being screwed around by agencies as the agencies try to squirm their way out of their tax and other legal obligations.

tleefox

1,119 posts

177 months

Thursday 4th April 2013
quotequote all
Wouldn't happen to be Dudleys would it?

matlee

Original Poster:

777 posts

180 months

Thursday 4th April 2013
quotequote all
tleefox said:
Wouldn't happen to be Dudleys would it?
You're spot on.

tleefox

1,119 posts

177 months

Friday 5th April 2013
quotequote all
Sorry to hear about your predicament!

The company I work for use Dudleys Architectural Aluminium a lot, and I know a lot of the directors including Mike Dudley personally. It's scant consolation to you if you end up out of pocket, but what has happened there is very surprising and things must be very bad for them to fold.

matlee

Original Poster:

777 posts

180 months

Friday 5th April 2013
quotequote all
From what ive heard the aluminium side of it is continuing.

I begun freelancing about 3 years ago and 90% of the work ive had has been through Dudleys so became familiar with their ways, the workforce etc. Im sure its not the end of the world for me (i hope not anyway!)it just means its time to refresh the CV and start networking more.

Hughesie

12,790 posts

311 months

Saturday 6th April 2013
quotequote all
Eric Mc said:
I know that. But what are the tax advantages that can be gained by paying an agency worker trough an umbrella company. What are they saying they are paying to the individual that allows them to reduce the associated PAYE and NIC.

I am an accountant and I know that by recategorising income as something other than wages, a tax and NI advantage may be obtained. How does this work for a simple contracted employee. What are they claiming the payments to the individual to be.
It pisses me off to be honest, I really don't see the advantage these days, especially with AWR ETC.

If I could stop it I would !