My DD1 has been temping since December, and the recruitment agency is paying her via an umbrella company.
She was told when she took the job that she would get £8/hour, but that is what the recruitment agency is paying the umbrella company. Once holiday pay, employers NII and the umbrella company's fee is taken into account, she has been getting just under the minimum wage of £6.70 per hour.
With the recent increase in the minimum wage to £7.20, the shortfall has got larger. Her payslip shows her getting the new minimum wage, but then a figure labelled 'expenses' is deducted from it. This appears to be the shortfall between what the umbrella company gets, and the minimum wage + NII etc, and it is now over £30/week.
Who is responsible for getting this resolved? Is it the umbrella company? The contract between the recruitment company and the umbrella company is one for services, not a contract of employment.
I have suggested my DD1 contacts both companies, but she is concerned that the recruitment company will terminate her contract if she asks for higher pay
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Umbrella company paying less than minimum wage
10 replies
seimum · 14/04/2016 21:55
OP posts:
mmmminx ·
14/04/2016 22:38
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