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I recently got a job as a temp for an admin position, although the agency did not charge me for finding work but when i looked at my payslip they are charging me 5% of my gross weekly pay for MANAGEMENT FEES! is this legal? when i enquired with them, they said this money was deducted as a Management fees for admin related duties such as processing my timesheet, payroll and paying the invoice finance company that advances them the money to pay my wages every week. As they have to wait for a month before they get paid, is this legal or could i take them to an industrial tribunal and sue them for breaking the law. But in all fairness in their agency terms and conditions it clearly specifies that a management fee of 5% will be deducted from my wages, but if this agency is breaking the law, i do want to take further action....PLEASE ADVISE!!!

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I have not come across this. I thought the employers paid them a fee which covered their costs.

 

Would the 5% deduction take you below the minimum wage level ? If so, that may not be legal.


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A fixed charge is OK. 5% of whatever you want screams of unlawful as they're saying all their costs are not fixed and cost more if you earn more. Which is not what happens


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We can't answer this at all unless we know how you are employed. if you are an umbrella company and self employed it's a very different answer to if you are an employee of the agency.

 

Are they offsetting travel costs against tax for you?

 

And so on.


Never assume anyone on the internet is who they say they are. Only rely on advice from insured professionals you have paid for!

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We can't answer this at all unless we know how you are employed. if you are an umbrella company and self employed it's a very different answer to if you are an employee of the agency.

 

Are they offsetting travel costs against tax for you?

 

And so on.

 

Yes I am employed by the agency and not umbrella, they pay my employers ni and ask relevant taxes, they also pay Me holiday pay.

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I have not come across this. I thought the employers paid them a fee which covered their costs.

 

Would the 5% deduction take you below the minimum wage level ? If so, that may not be legal.

 

No not at all, I am on £12 an hour on a 36 hour week.

Edited by honeybee13
Fixed quote box for ease of reading.

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the fee is specified in the contract and you are well above NMW.

 

So, all above board.

 

Do ask for a breakdown of what you get in return for the fee. It may be something you can cancel. Often it is offsetting travel costs against tax. You might choose not to do that.


Never assume anyone on the internet is who they say they are. Only rely on advice from insured professionals you have paid for!

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