Morning all,

Just after a bit of advice for my neighbour please if poss.

He is a self employed plumber and has been working with a construction company through an agency (and paid through an umbrella company) for the past few months.

The job was meant to be completed and handed over next week, but he said that on wed afternoon men in suits came (Official Recivers?) shut the job down, and asked everyone to leave the site as the company had gone bankrupt.

On Friday, he did not get paid and he called the umbrella company who told him to call the agency, he tried but cant get an answer from the agency when he rings.

The money he wasn't paid is from wages the previous week so is now technically at least 8 days wages owing.

Anyway, my question is, Is there anything he can do to get paid? Are the agency still obliged to pay him what he has earned or has he worked for nothing?

I'm assuming there's no point putting in a money claim to the bankrupted company, but what about the agency?

I've advised him to dig out any contract/paperwork he has with the agency to check if there is a procedure for this sort of thing but thought I'd ask here for any further advice.

Many thanks

Up2

who was his contract with? the agency, or were they just people finders and his contract was with the bankrupt company? It's worth checking his paperwork carefully.

Hi Emmzzi,

Thanks for looking in.

I'll ask him that, but I believe it's with the agency as he said he has a contract with them when I advised him to dig it out. Is it a more positive resolution for him if it's with the agency?

He's been doing work with various companies through this agency for months

Thanks

Up2

yes, as the agency are not bankrupt...?

If the company that pay him have gone bankrupt it dosent mean they have no assets always and wages will be at the top of the list for paying, there is a set formula for creditors to be paid if there are assets

The first thing to check is whether the Agency or the Employer are liable. It is worth checking but I would be surprised if the Agency are liable. I guess the contract probably says the agency is responsible for finding work but the employer is responsible for providing payment.

The second thing to check is whether he was really getting paid "wages". You say he was self-employed so my guess is that he is a contractor, who receives a fee and not salary or wages. The easiest way to check is to ask whether national insurance is deducted from his paypacket. If he is actually an employee then he might be able to claim from the National Insurance Fund, see http://webarchive.nationalarchives.gov.uk/+/http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guideforemployees.pdf. Note the claim cannot be made direct and has to be made through the insolvency practitioner.To find the insolvency practitioner, ask the agency. He can also check companies house webcheck (google it).

If he is a contractor his position is weaker and he does not have the same protection as true employees. If this is the case he should put in a claim with the insolvency practitioner ASAP. Whether he will get anything is hard to say, sometimes there is something left for unsecured creditors sometimes there isn't.

Thanks for the replies.

He gets his wages through the umbrella company via the agency and has tax an national insurance deducted. I'll pass on all the info you have supplied, and he'll just have to hope he can get through to someone at the agency tomorrow to get it sorted.

Thanks for all your advice, I think he was panicking because he's not been able to speak to anyone.

Thanks again

Up2