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

[fantalemon]

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...

Hi OP, why not give ACAS a ring? More reliable than JCP or Direct Gov! Here's the number 08457 47 47 47.
Hth

Bump

I just asked dh what he thinks because he works through an agency in the way you describe.

He seems to think it comes down to how SMP is paid, because if you can claim it directly as a self employed person, then you don't really need to use the agency to pay your tax and NI. Assuming you pay those on SMP - I don't know.

You could ask other agencies what they would charge (dh pays less than you per week) and ask the LA if they would be prepared to employ you through the best one you find.

I was paid SMP through an umbrella compant as well and didnt get the usual admin fee charged. They only took out income tax and NI contributions. So if I were you I would follow this up.

I agree-I still wouldn't be happy about this-have you had any progress op?

No no no this is totally not on, you should be getting full smp. What you need to do is raise an official grievance with your employer. They will have a procedure for you to follow. Do everything in writing and by recorded delivery and keep copies of everything.

Agree agree agree!

Thanks for all the further posts/advice. I have had some progress (of sorts) in that they have now agreed to pay me monthly so I only incur one lot of admin fees a month ie £20 a month rather than a week. I though that seemed easier than arguing over dropping the fee entirely.

Still a bit annoying but much better than losing £20 a week. I really pressed them for info as to why they say it costs them so much to process a standard statutory payment and was just told it covers things like their bank fees. They also seemed to think that in order to get the job centre to pay me I would need to resign (even though in practice my assignment at the council has finished) and then that calls into question whether I would still be entitled to SMP. not sure about that.

I think I will try calling ACAS though just to see what they say - thanks whydoes for the number. Evely - that is interesting what you say about not having paid an admin fee when you received SMP. I did lay it on thick about how it was a statutory payment paid by the government to mothers to enable them to stay at home to care for their baby and to lose a big chunk in fees that don't seem to correlate to the actual cost to the co. was unfair. I do get that the umbrella co isn't a charity but I also feel the money I've been paying out of my salary every week until now helps "cushion" the co against the costs of paying SMP to those employees on mat pay.

Thanks again everyone.

And thanks needsomezz for details about that helpline, I will try them too.

Sorry I still don't agree with what they are saying

Covering bank fees? What bank fees? They are a business they have to make bank transactions all the time they can always pass that on to other people! And £20 a week or even a month per employee is still too much IMO

Please phone ACAS and don't let this drop! You are potentially giving away £180 of your money to a bunch of crooks!

They can't

Could you stop claiming SMP & claim SMA instead? Sounds like the amounts are the same, dunno if you can swap part way through though.

Yes, I though the same re bank fees, they did say "same day bank fees" ie I assume they pay a premium to have the money transferred to my ac on the same day but I have never asked for that service.

Well exactly-I've worked for many agencies and have never been charged bank fees

As I understand it businesses usually pay a flat fee
For x transactions so would have to pay it whether you are on their payroll or not. To transfer that fee to you and other employees
Is not on

I could be wrong though

Companies often suddenly see the light at the threat of being publicly outed. How about telling them you will send your story to BBC radio 4s Money Box, and then do so.

Absolutely-name and shame?