Newbie - questions re umbrella contract

[LadyIndigo01]

Hi all

I would be grateful for any help with this...
I've got my first contract through an agency and am signing up with an umbrella company but have a few questions re their contract.

1. The contract states: 'You are obliged to work when we require you to do so' and 'You may be required to spend up to one week (35 hours) or such longer period as we may require after each Client Assignment as a Sourcing Assignment on efforts to source new business for us in the form of your next Client Assignment'.
I was hoping that I could work as and when I wanted to i.e. having time off in between contracts - can they oblige you to work? How can they implement this?

2. The contract says that I have to submit timesheets even when I am not working on a contract....do I really have to do this?

3. 'Non-compete' clause - states I cannot enter into a similar contract of service direct with the client within 6 months of termination with the umbrella company. Does this mean that if I was offered a permanent job with the client I would have to wait 6 months before starting? Is there any way of getting around this e.g. paying the umbrella company a fee?

3. The umbrella company have told me I can claim travel expenses. The agency also told me that I can claim travel expenses from the umbrella company. However the agency contract says that expenses will be processed through them (the agency) and must be authorised by the Client. Can I claim expenses direct through the umbrella company?

many thanks for any information you can share re this

[cojak]

Hi all

I would be grateful for any help with this...
I've got my first contract through an agency and am signing up with an umbrella company but have a few questions re their contract.

1. The contract states: 'You are obliged to work when we require you to do so' and 'You may be required to spend up to one week (35 hours) or such longer period as we may require after each Client Assignment as a Sourcing Assignment on efforts to source new business for us in the form of your next Client Assignment'.
I was hoping that I could work as and when I wanted to i.e. having time off in between contracts - can they oblige you to work? How can they implement this?

2. The contract says that I have to submit timesheets even when I am not working on a contract....do I really have to do this?

3. 'Non-compete' clause - states I cannot enter into a similar contract of service direct with the client within 6 months of termination with the umbrella company. Does this mean that if I was offered a permanent job with the client I would have to wait 6 months before starting? Is there any way of getting around this e.g. paying the umbrella company a fee?

3. The umbrella company have told me I can claim travel expenses. The agency also told me that I can claim travel expenses from the umbrella company. However the agency contract says that expenses will be processed through them (the agency) and must be authorised by the Client. Can I claim expenses direct through the umbrella company?

many thanks for any information you can share re this

Hi LadyIndigo01

I'm not with an umbrella company but someone will be around to answer your questions.

Which umbrella is it?

[TheFaQQer]

1. The contract states: 'You are obliged to work when we require you to do so' and 'You may be required to spend up to one week (35 hours) or such longer period as we may require after each Client Assignment as a Sourcing Assignment on efforts to source new business for us in the form of your next Client Assignment'.
I was hoping that I could work as and when I wanted to i.e. having time off in between contracts - can they oblige you to work? How can they implement this?

You are their employee, so if they require you to work then you work. The contract is designed to stop an employee just disappearing and leaving the umbrella in the lurch when they have a contract which commits you to delivering to a client.

2. The contract says that I have to submit timesheets even when I am not working on a contract....do I really have to do this?

If your employer tells you that you need to submit a timesheet, then you need to submit a timesheet. You should be getting paid between assignments anyway, so this just makes sure that you are being paid correctly.

3. 'Non-compete' clause - states I cannot enter into a similar contract of service direct with the client within 6 months of termination with the umbrella company. Does this mean that if I was offered a permanent job with the client I would have to wait 6 months before starting? Is there any way of getting around this e.g. paying the umbrella company a fee?

There would need to be some negotiation about a fee, but it's usually possible.

3. The umbrella company have told me I can claim travel expenses. The agency also told me that I can claim travel expenses from the umbrella company. However the agency contract says that expenses will be processed through them (the agency) and must be authorised by the Client. Can I claim expenses direct through the umbrella company?

If your employer allows you to claim expenses from them, then you can claim them from your employer. The agency contract will refer to things which are then billable back to the client, which is a different matter - if you are billing expenses back to the client then the umbrella would invoice the agency for those.

[LadyIndigo01]

Thank you for the replies....I am still a little confused....

1. I was not planning to disappear in the middle of a contract. The one I have got has an end date and I was planning on taking some holiday before starting the next one. But this clause seems to say I can't plan and book a holiday in advance because they might need me to work. Is this correct? (or do I need to ask them for leave in between contracts?)
Also if it is correct are there any umbrella companies that will let me work on fixed term contracts and take breaks between them?
Surely they can only make you work if there is an appropriate assignment? (or can they force me to take an assignment for example at the other end of the country if I didn't want to travel that far?)

2. I'm a bit confused with the reply that I should be getting paid in between assignments. I wasn't aware of this. I thought I just got paid for the time I am actually working. Are they paying me then for the time I might spend looking for the next assignment? I spose I will have to get them to explain this to me.

3. Thanks - that has cleared this up for me.

regards

[northernladuk]

The best people to ask is the umbrella. They are going to be your employer so give them a grilling about their T&C's. Don't sign up for anything until you understand it. We can only offer random advice about a situation we have no idea about with very little facts so go to the source and wring all the answers you want out of them.

Once you have done that speak to another one and ask them the same questions until you are confident how it works.

Make sure the second one you speak to is Contractor Umbrella. Lisa posts on hear regularly. Even if you don't go with them she will give you straight advice from a reputable company.... if she is not too busy drinking tea.

[LadyIndigo01]

thanks for your help. I'll speak to them tomorrow

[LisaContractorUmbrella]

Hi all

I would be grateful for any help with this...
I've got my first contract through an agency and am signing up with an umbrella company but have a few questions re their contract.

1. The contract states: 'You are obliged to work when we require you to do so' and 'You may be required to spend up to one week (35 hours) or such longer period as we may require after each Client Assignment as a Sourcing Assignment on efforts to source new business for us in the form of your next Client Assignment'.
I was hoping that I could work as and when I wanted to i.e. having time off in between contracts - can they oblige you to work? How can they implement this?

An umbrella company employees you under what's called an overarching contract of employment - this creates continuity of employment across a series of assignments; if the contract was not in place the individual workplaces would be considered permanent by HMRC definition rather than temporary. One of the requirements of any over-arching contract is for mutuality of obligation during the assignments but also in the gaps between assignments - this clause provides it. If you wish to take holiday between assignments the umbrella company should have no issue with that

2. The contract says that I have to submit timesheets even when I am not working on a contract....do I really have to do this?

If you are still in their employment then yes for the reasons shown above

3. 'Non-compete' clause - states I cannot enter into a similar contract of service direct with the client within 6 months of termination with the umbrella company. Does this mean that if I was offered a permanent job with the client I would have to wait 6 months before starting? Is there any way of getting around this e.g. paying the umbrella company a fee?

This clause mirrors one that would be in the business to business contract between the umbrella company and the recruitment agency. If a client contracts directly with a contractor, after having done so previously via a recruitment agency they would have to pay a fee

3. The umbrella company have told me I can claim travel expenses. The agency also told me that I can claim travel expenses from the umbrella company. However the agency contract says that expenses will be processed through them (the agency) and must be authorised by the Client. Can I claim expenses direct through the umbrella company?

There are two types of expenses - those which are reimbursed by the end client (chargeable) and those upon which you receive tax relief through the umbrella company (non-chargeable) - you would need to check with the recruitment agency what expenses, if any, the client is prepared to foot the bill for. You can claim travel expenses through the umbrella company but only if certain conditions are met - it's not a given. If you will be working at the location for less than 24 months or for less than 40% of your time over a 24 month period AND if you intend to work on more than a single assignment whilst in the umbrella company's employment then you would be able to claim.

many thanks for any information you can share re this

HTH

[Wanderer]

3. 'Non-compete' clause - states I cannot enter into a similar contract of service direct with the client within 6 months of termination with the umbrella company. Does this mean that if I was offered a permanent job with the client I would have to wait 6 months before starting? Is there any way of getting around this e.g. paying the umbrella company a fee?

The umbrella will ask you to sign an "opt out" of the Agency Conduct Regulations. Refuse to accept this opt out and the restriction doesn't apply to you.

See here for info about the opt out

[LadyIndigo01]

The umbrella will ask you to sign an "opt out" of the Agency Conduct Regulations. Refuse to accept this opt out and the restriction doesn't apply to you.

See here for info about the opt out

Thanks, yes they were trying to push me to opt-out but I realised and didn't!