Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To be peed off at losing £20 a week from SMP as an "admin fee"

67 replies

fantalemon · 12/05/2012 21:01

My first AIBU.....drumroll...

I have posted briefly in Employment recently about this but it is now really bugging me and keen for some wider perspective.

So, v briefly, I have spent the last 9 months working at a local authority as a locum. I was paid through an umbrella company. For a flat fee of £24 a week they sorted out my pay from the agency and tax etc. For all intents and purposes they were my employer. Can see why they charged an admin fee as they processed my pay each week, deducted tax and NI, raised an invoice to my agency (who ultimately invoiced back the local authority). As I didn't wrk directly for them, they need to raise the money to cover their charges etc.

Fast forward 9 months, am now on maternity leave and am entitled to receive SMP from the Government as I fulfil all the criteria. I get it paid by the umbrella co each week as they are or were my employer BUT they are taking £20 a week as an "administration fee". I fail to see how it can cost them that much to process a weekly payment of exactly the same amount each week for 39 weeks. Surely it's nearer to a few pounds.....

So out of a weekly income of £135 (which is going to be a struggle anyway) I lose £20. I had not factored this into my calculations (did not realise until i got my first payslip on mat leave) and it really does make thins very difficult. I appreciate that this co has to make money but surely that's why I (and all the other "employees") pay £24 a week while they work and they should factor in that their employees may become entitled to SMP at some point. It pees me off that this is money the Government pay to women to enable them to be off work and these thieving b@stards are snaffling almost a 6th of it from me. Thankfully we are not in total total dire straits (yet) but for someone else £20 a week from £135 could mean difference of heating their home, food for the baby etc etc

I asked for a breakdown of why they say it costs them £20 a week in admin, refused other than it covers their bank charges, I asked to negotiate down the amount they deduct, refused.

Should I just suck it up and lose £20 a week or threaten to take it further (not entirely sure where to mind....)? They said to me that any payment they have to make to an employee is subject to deductions for admin, eg SSP, but surely this adversely affects women as they are ones on SMP and who lose out of money they are entitled to.

Hope this makes sense...

OP posts:
olimpia · 12/05/2012 21:08

Are you an agency worker effectively? Or are you an employee? Or do you not know?
It may be illegal but I'm not 100% sure. I would go to an employment solicitor that offers first half hour for free or to a CAB that employs an employment caseworker.

CallMeAl · 12/05/2012 21:10

I imagine you signed a contract covering this at the start. You should probably check that before you start calling anyone theiving bastards or trying to report them to someone.

fantalemon · 12/05/2012 21:12

Thanks Olimpia. What they are doing is, as far as I aware, perfectly legal (sorry should have mentioned that). I am more peed off from a "moral" point of view, this is money I am entitled to yet am losing a big chunk due to an admin fee that I think is entirely out of proportion to their actual costs. That's my money!

OP posts:
fantalemon · 12/05/2012 21:15

Thanks CallMA. Regardless of whether or not it's covered in a contract (which it is), doesn't necessarily make it reasonable or fair tho. As for reporting them, i just wonder whether the practice of taking £20 from a payment the Government is making to me ought to be highlighted at a higher level.

OP posts:
olimpia · 12/05/2012 21:22

Yes absolutely fanta. The fact that the fee is covered in the contract doesn't mean it's not an "unfair" term (unfair under the UCTA) but does make it more unlikely. And yes most employers get the SMP back from the government hence why I thought it might be illegal to make a deduction. Have you sought legal advice on this?

TheUnsinkableTitanic · 12/05/2012 21:23

do you have to claim your SMP via them?

CallMeAl · 12/05/2012 21:24

But if you thought it was unreasonable or unfair, why did you sign up with them?

Find out if it is not allowed, but I would imagine they do it because it is permissable.

fantalemon · 12/05/2012 21:29

Have not sought legal advice (am lawyer, not employment tho, so hoped I could muddle thru this one). AFAIK, SMP is treated as "earnings" rather than a government benefit so fine for employers to make deductions eg pension. Just riles me that £20 seems hugely out of proportion to the amount of SMP i get plus I don't believe it actually costs them £20. Feel ripped off. Happy to blame it on hormones,

Good point Titanic although expect I have to claim my SMP from them as they were my "employer".

OP posts:
fantalemon · 12/05/2012 21:30

Call me al - I wasn't pregnant at the time!

OP posts:
marriedinwhite · 12/05/2012 21:34

SMP is a statutory entitlement and I think you are entitled to receive all of it. Difficult to say without seeing the contract but I think a short visit to your local job centre should get it sorted out for you.

fantalemon · 12/05/2012 21:38

Thanks married, will head to JC, maybe I can get paid direct instead.

OP posts:
maddening · 12/05/2012 21:40

could you claim sma direct from the government instead? Could it not be argued that you were essentially self employed if they charge you for processing?

olimpia · 12/05/2012 21:40

JC have nothing to do with SMP and they never know anything anyway
It is treated as earnings and not as a benefit but I would still try to find out if they're allowed to make a deduction.

vj32 · 12/05/2012 21:42

Why would you go to the JC? They struggle to tell you anything about JSA, which is what they do. I seriously doubt they know anything about SMP.

Belmo · 12/05/2012 21:44

No advice as I know nowt about employment law but I would be raging, that is outrageous! Can't believe they can get away with that Shock

ginmakesitallok · 12/05/2012 21:45

I'd be pissed off too - but I think they are allowed to make the same deductions they normally would?

fantalemon · 12/05/2012 21:46

Hmmm..... Okay maybe I won't go to the JC then.

Think I am stuck with losing £20 a week but still pees me off as think I should receive all of my SMP.

OP posts:
maddening · 12/05/2012 21:47

look up sma on direct gov website

fantalemon · 12/05/2012 21:50

Thanks maddening. Will do although already started to receive SMP so not sure I could swop.

OP posts:
Givingupmyjob · 12/05/2012 21:50

Are you sure the umbrella company is your employer? That probably isn't the case technically. You are probably self employed but paying them to process your payments which is why they've still charging you to process your maternity pay. Do they pay you annual leave, sick pay etc? Can they discipline you? It is ordinarily the case that no deductions can be made from smp at all.

olimpia · 12/05/2012 21:53

They must be her employers otherwise no SMP would be due. Self employed people get maternity allowance not statutory maternity pay. You can't choose which one you receive.

Givingupmyjob · 12/05/2012 21:55

Could just be a labelling error by the company

Hervana · 12/05/2012 21:56

No no no-it's unlawful to make deductions from amp it's a
Statutory entitlement

OP l

marriedinwhite · 12/05/2012 21:57

If you have stopped being employed but were entitled to maternity pay because you met the statutory requirements you are entitled to receive the total payment to which you are entitled at the end of the employment which should mean that you can only be charged one admin fee. I disagree with the poster who says the job centres are hopeless, I regularly send pg women to our local one and they often clarify very complex issues, especially when there are several employers for an hour or two a week or when women are very close to the minimum earnings to qualify.

Hervana · 12/05/2012 21:57

ahem

OP Look at the direct gov website, have a bit of a research and tell us your findings. You should be able to do that you're a lawyer Grin