Contract mess - advice needed please!

[jubial]

Hello everyone. I am new to contracting and hoping someone could shed some light on a situation I found strange.

I was hired by a large fashion company (very reputable, large brand in Europe) in London and offered a day rate of $430 for a 6-month contract. The role was posted calling for a Data Scientist, but the role turned out to be a Program Manager/Scrum Master job which was what I was strongest at anyway so I accepted the role.

Keep in the mind, the role was posted directly on the company’s website and all the recruiters I spoke to were in fact employed by that company.


The recruiter moved super-fast and after two phone interviews asked if I could start in two weeks. Oddly, though, when they sent the contract over they copied a third-party company on the email and informed me that payroll and contract signing would all go through an agency called Tri Consulting. I looked this company up and I got very confused. They seem to be a recruitment agency that provides contractors out to clients. No where in the contract is the company I am actually working for named. They are just referred to as CLIENT and it seems like I signed an employment contract with Tri Consulting, who in turn is loaning me out to this fashion company.

I have NEVER heard nor have I spoke to anyone in this agency. All of my interviews have been through the actual fashion company and they were the ones who gave me the offer. Why am I going through this third party for payment? The client promised me weekly payments, and Tri Consulting said the first payment will be delayed by three weeks. So they are not in alignment.

Further more, I requested to use an Umbrella company because Tri Consulting refused to help with taxes. Because I opted in to my legal rights, they asked Tri Consulting (NOT the fashion company) proof that I am a legit candidate and to prove I passed my references and that my credentials are legit and they have seemed to go radio silent on this issue. I got a brief email saying Opting In would delay my payments even more and the Umbrella (Parasol) is now reluctant to proceed with me.

What do I do? I have already started and have completed my first week with the fashion company client. I still have no idea when or how I am getting paid because there seems to be conflict between this agent and the Umbrella company now after I opted in.

Also, when signing the contract I was NOT allowed to add in clauses or alter anything. It was a “Sign or Nothing” contract. The original HR lady who extended the offer doesn’t know what to do and keeps telling me to speak with Tri Consulting. When I asked for the scope of my work to be included in the contract, they refused but did send me the job ad in the email. Again - the job ad only talks about the Data Scientist role which is NOT what I am currently doing. I am a Project Manager here.

What the hell is going on? Anyone have experience with something like this!? No idea what to do. I am scared I worked my first week for free since none of these issues were resolved.

Anyway. Long story short. My contract currently looks like this: Client -> Recruiting Agency -> Umbrella -> Me when what I was expecting was Client -> Umbrella -> Me. There is a huge bottleneck currently between Agency -> Umbrella due to my opting in to my rights.

[Contractor101101]

First of all, getting paid through an agency can be advantageous because they usually pay you based on an agreed schedule. Weekly or monthly. Clients can demand 30, 60 or 90 days invoice terms. Agencies will pay you before the client pays them.
It is never an Agency's job to help you with taxes, they are not qualified accountants. We can't help you with taxes either, you must get your own accountant.

It sounds like the client has a deal with the agency or don't want to deal with the paperwork. Or the fact that you don't have your Ltd and are inexperienced, they don't want the hassle.

My sympathies regarding Parasol, I had the misfortune of using them before I set my Ltd and they almost lost my most lucrative contract. Pick another umbrella if they won't proceed with you, ask the agency if they have a deal with a particular one. Watch what you sign.

Regarding payment terms, what is in your contract? Generally it isn't a good idea to sign a contract if the agency or the client won't negotiate with you. Although I realise that you might need the money, of course.

Has the agency explained the 3 week delay? Is it onboarding? Initial pay can sometimes take a bit longer.

What is in your contract?

edit: regarding your expectation of using umbrella directly with a client, I have never heard of an arrangement like that. Only through an agency or via your Ltd and then client.

[jubial]

First of all, getting paid through an agency can be advantageous because they usually pay you based on an agreed schedule. Weekly or monthly. Clients can demand 30, 60 or 90 days invoice terms. It is never an Agency's job to help you with taxes, they are not qualified accountants. We can't help you with taxes either, you must get your own accountant.

It sounds like the client has a deal with the agency or don't want to deal with the paperwork. Or the fact that you don't have your Ltd and are inexperienced, they don't want the hassle.

My sympathies regarding Parasol, I had the misfortune of using them before I set my Ltd and they almost lost my most lucrative contract. Pick another umbrella if they won't proceed with you, ask the agency if they have a deal with a particular one. Watch what you sign.

Regarding payment terms, what is in your contract? Generally it isn't a good idea to sign a contract if the agency or the client won't negotiate with you. Although I realise that you might need the money, of course.

Has the agency explained the 3 week delay? Is it onboarding? Initial pay can sometimes take a bit longer.

What is in your contract?

edit: regarding your expectation of using umbrella directly with a client, I have never heard of an arrangement like that. Only through an agency or via your Ltd and then client.

Thanks! I guess I was just confused because I dealt directly with the client yet my contract is with an agent who I never spoke to until AFTER the client hired me. I suppose that is normal?

And the the agency just got back to me pushing me to Opt Out because they said the paperwork on their side was "really complicated" and they basically keep asking me why I am insisting on it. At this point it's like both my umbrella AND the agency is pressuring me to opt out.

[Contractor101101]

Thanks! I guess I was just confused because I dealt directly with the client yet my contract is with an agent who I never spoke to until AFTER the client hired me. I suppose that is normal?

And the the agency just got back to me pushing me to Opt Out because they said the paperwork on their side was "really complicated" and they basically keep asking me why I am insisting on it. At this point it's like both my umbrella AND the agency is pressuring me to opt out.

I'll let the others help you regarding what to do because my patience is super short when it comes to being pressured. The fact that the role is different, that you couldn't negotiate and that they are messing you around potentially with pay (the pressure for opting out) would make me walk away.

How do you like the client so far? How is the work?

[BlackCountryContractor]

Jubial Go through our long chain posted thread about Opting in/out be prepared to to be annoyed (Long story short we have never heard the end of this problem)

Btw one personal thought here reading your post, it seems you got by the looks of it a dead-mans shoes gig. I would be very cautious and start discreetly checking around about your job if anyone else has previously held it as the turnaround for your job spec was fast even by it contracting standards and it doesn't help they switched around the job profile.

(This is often done as an agency/client trick if they have had issues trying to recruit for the job because rates would be much higher or bad PR filtering out about it).

[northernladuk]

IMO if the opt. In/out is the major issue here then just opt out and get on with the gig.

Many agents don't want to deal with opt in contractors due to all the extra responsibilities on them and they are allowed to do so. This situation isn't uncommon.

Golden rule to remember going forward though. Do not start on site until all this is signed and sealed as you've absolutely no chance of changing anything that suits you once you are on site.

[Anonimouse]

Surely it’s too late to opt out now regardless

Echo avoid parasol

[northernladuk]

Indeed but the agent doesn't have a clue so do whatever to get things smoothed over.

OP. Give Lucy at Contractor Umbrella and go with them. She posts here a lot a knows the game inside out.

[Contractor101101]

Oh yes OP, I forgot to mention that this site has various recommended services. It's really well worth reading pretty much all the articles.

[Lance]

IMO if the opt. In/out is the major issue here then just opt out and get on with the gig.

Many agents don't want to deal with opt in contractors due to all the extra responsibilities on them and they are allowed to do so. This situation isn't uncommon.

Golden rule to remember going forward though. Do not start on site until all this is signed and sealed as you've absolutely no chance of changing anything that suits you once you are on site.

I've never used one, hence I don't know this.

But isn't opting out totally irrelevant if you use an umbrella? You're an employee of them so opting out isn't an option.