Payment Dispute with Umbrella Company Payment Dispute with Umbrella Company
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  1. #1

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    Post Payment Dispute with Umbrella Company

    Please help me with this case:

    My umbrella company agreed to deduct my salary and make a contribution to my pension fund.

    The client gave me one month notice to terminate the contract. The agent also agreed to pay me one month notice period. - I have all the written evidence.

    However, the client or agent changed their mind later, and did not pay my umbrella company. But my umbrella company still made the pension contribution without deducting my salary.

    Now the umbrella company wants the pension contribution refunded. But my argument is that I have not got the salary I deserved. Taking the unpaid salary into consideration, I am actually in credit.

    The umbrella company is about to sue me. Do you think I have a case to fight? What are my options? Thanks!

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    Quote Originally Posted by jin View Post
    Please help me with this case:

    My umbrella company agreed to deduct my salary and make a contribution to my pension fund.

    The client gave me one month notice to terminate the contract. The agent also agreed to pay me one month notice period. - I have all the written evidence.

    However, the client or agent changed their mind later, and did not pay my umbrella company. But my umbrella company still made the pension contribution without deducting my salary.

    Now the umbrella company wants the pension contribution refunded. But my argument is that I have not got the salary I deserved. Taking the unpaid salary into consideration, I am actually in credit.

    The umbrella company is about to sue me. Do you think I have a case to fight? What are my options? Thanks!
    I am not sure how umbrealla's work, but I would imagine that in the contract that they will only pay you if they have been paid themselves?! In this case it seems they jumped the gun and paid your pension early, it was a bit of a cock up on their part but they have basically given you money you didn't earn so IMHO are within their rights to ask for it back.
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

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    Quote Originally Posted by jin View Post
    The umbrella company is about to sue me. Do you think I have a case to fight?
    Nope. Presumably you didn't tell the brolly not to make the payment in time and their system paid the contribution (probably similar to a direct debit where you need to give a few days notice to cancel and stop a payment going through).

    Basically you owe the brolly - why should they fund a pension contribution from their own money?

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    the Umbrella cocked up they obviously paid out the money before receiving in your wages, however i think you will find (and someone tell me i am wrong if not) that you will have to pay the money back, Many years ago when i was perm (spit) several of us were overpaid for some overtime and we argued that it was their mistake but i beleive the law states that the money had to be returned as we had not earned it and we had to give it back so i think you will find the same principle applies here so your either gonna have to pay them out of your own pocket or get the pay from the client

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    Quote Originally Posted by ilovehr View Post
    Nope. Presumably you didn't tell the brolly not to make the payment in time and their system paid the contribution (probably similar to a direct debit where you need to give a few days notice to cancel and stop a payment going through).

    Basically you owe the brolly - why should they fund a pension contribution from their own money?
    I told them well in advance, but they still made the pension contribution. The agent agreed to pay me. Should the umbrella company not pursue payment from the agent?

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    Quote Originally Posted by Support Monkey View Post
    the Umbrella cocked up they obviously paid out the money before receiving in your wages, however i think you will find (and someone tell me i am wrong if not) that you will have to pay the money back, Many years ago when i was perm (spit) several of us were overpaid for some overtime and we argued that it was their mistake but i beleive the law states that the money had to be returned as we had not earned it and we had to give it back so i think you will find the same principle applies here so your either gonna have to pay them out of your own pocket or get the pay from the client
    Your case is a over payment. I think it is different in my case. I did earn it, and Agent agreed to pay, but did not pay.

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    Quote Originally Posted by SimonMac View Post
    I am not sure how umbrealla's work, but I would imagine that in the contract that they will only pay you if they have been paid themselves?! In this case it seems they jumped the gun and paid your pension early, it was a bit of a cock up on their part but they have basically given you money you didn't earn so IMHO are within their rights to ask for it back.
    I earned money, and agent agreed to pay, but did not pay.

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    Quote Originally Posted by jin View Post
    I earned money, and agent agreed to pay, but did not pay.
    Did you work the month notice or did they pay you a month in lieu of notice?
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

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    Quote Originally Posted by jin View Post
    Your case is a over payment. I think it is different in my case. I did earn it, and Agent agreed to pay, but did not pay.
    Same principle applies, if you open your bank statement tomoorrow and the bank have added a couple of noughts by mistake the money is not yours its the banks.

    The umbrella made a mistake and have paid the money into a pension "your Pension" without recieving the money from the agent even though it was a mistake its still their money not yours and they can request it back.

    Brollies don't chase agents even thought the contract is between the agent and the brollie they are still just a payment facilitator between you and the agent, you will need to chase the agent for the money if you don't pay it out of your own pocket

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    Quote Originally Posted by Support Monkey View Post
    Same principle applies, if you open your bank statement tomoorrow and the bank have added a couple of noughts by mistake the money is not yours its the banks.

    The umbrella made a mistake and have paid the money into a pension "your Pension" without recieving the money from the agent even though it was a mistake its still their money not yours and they can request it back.

    Brollies don't chase agents even thought the contract is between the agent and the brollie they are still just a payment facilitator between you and the agent, you will need to chase the agent for the money if you don't pay it out of your own pocket
    In your example, what if I work for the same bank, and the bank has not paid me salary? Should the bank insist me refunding those noughts in full or the bank consider the unpaid salary and adjust the amount?

    In my case, the pension contribution is from my salary sacrifice. I have not received my salary. Is my unpaid salary never taken into consideration?

    I have no contractual relationship with agent. How do I chase the agent?

    The contract is signed between agent and umbrella. I understand umbrella do not want to chase agent, but should they? or Do they have legal right to?

    If the umbrella signs a contract but does not follow the contract, then I think it is a huge risk to all contractors. We should all dump umbrella companies!
    Last edited by jin; 15th April 2011 at 16:20.

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