Susan's Legal Bits

In January 2010 Susan was interested in.....

....Umbrella Companies, how to spot the differences and dangers

Hello all,

January is in full swing for us here with the obligatory bad weather, chillblains (yes Lisa !!), soggy boots at the office door and relief when you discover the security guard did put the heating on an hour earlier for us all on a Monday morning.

Since coming back with a fresh burst of energy I have been digging around the industry to see what our competitors do differently to us in terms of employment law. I have been shocked to discover contracts that profess to be 'umbrella' contracts but do not even declare a mutual relationship and do not promise minimum wage or minimum hours. This concerns me as you've probably worked out that I'm a stickler for both the law and for employees being treated well with regards to their rights.

The thing is, these differences don't get displayed on the fancy marketing literature that you view - they tend only to appear once you have completed an application form, signed on the dotted line, sent in your passport and only then do you get all the bumf which marks your new contractual relationshp with this company. This worries me not for anyone looking to join us of course, but for those of you reading this that might be tempted to use one of our competitors that may not be totally compliant. All I want is to give best advice so you avoid signing yourself into dangerous territory.

When you are approaching a number of umbrella providers to compare them all before making your choice please ask more questions other than just 'how much do you charge per week' and... 'do you look after my tax and ni?' In light of my quite concerning research I would strongly suggest that you should also be asking the following questions - would I be working under a contract of services or a contract for service ? what rate would my employment contract refer to? what hours am I obliged to work according to my contract with you? If the representative can't or won't answer these questions have second thoughts.

You need to be sure you are working with/for an umbrella provider who has a correct understanding of overarching contracts of employments. If they fail to fulfil the legal requirements of such, you could be working for/with a company that is likely to be investigated this year by HMRC.

So, the start of January has seen me become unusually angry (a rare position I find myself in) but.... when it comes to employment there is no room for shoddy 'employers' as far as I'm concerned, even if you consider it only a payroll method you still deserve the protection of the best kind of umbrella provider.

On a final note I am getting a sense of the economy picking up and truly hope everyone is securing work which is stimulating and interesting. Once we learn to love the work we do we never have to work another day in our lives!!!

Take care of yourselves if you are out and about in the course of your work this month and I'll catch up with you all again in February. As always, if you have any topics you would like to see me discuss just contact me through the usual method.

All comments provided on my blog are for informational purposes only. My thoughts and opinions are my own with agreement from my employer as being suitable for sharing with the wider world. Any advice, or writing that might be taken as advice, should not be deemed in any way as professional Legal advice and are only the musings of a HR practioner whose sole aim is to help where she can.