Is this legal?

[Almost]

Hi all,

As my business is seasonal only through the summer months, I often pick up PAYE work for a few months over the festive period.

To cut a longer story short, I used an agency this time (something I have never done before) as it was the right position: being an easy commute and short hours. Trouble is, having looked at the payslips (two so far; only two weeks worked to date) I cannot see where they are getting the figures from.

See an example here:
(well I cannot post link as not yet at thirty posts). See imgur.com and add /wxdzuPw to the end.

I will call them tomorrow but I wondered if anyone with more experience working through an agency or who pays staff in such a way could shed some light on things for me. Employers NI, meal allowance, mileage? Looks like they have set me up as a ltd company, or however it is they do things.

Please pardon my ignorance.

Thanks.

 

[Terry Wainwright]

Looks like either some sort of umbrella company scheme, or a very bad job of them being your employer. If so, they can't deduct THEIR NI from YOUR pay!

 

[Alan]

Unless it has been agreed on in the contract.

"Apart from any legal deductions like tax or National Insurance, employers can’t make any deductions from wages unless either:

• they’re in the employment contract
• the employee has said in writing that they accept the deduction before it’s made"

Need to read the contract to see

 

[Terry Wainwright]

If he is a direct employee of the agency, then they cannot charge their NI liability to his pay. I'm certain your quote does not refer to employers NI, but to employees. Only if it is umbrella would it be legal. A contracts terms and conditions cannot make something illegal become legal.

I believe this is umbrella here anyway.

 

[Terry Wainwright]

To clarify, as I worded something poorly in my firstpost: when I said "if so" I meant if the latter.

 

[Alan]

I couldn't find (I did search) anything that stated it was illegal to deduct Employee NI. The quote came from gov.uk. Have you a reference point that clarifies that it explicitly illegal, even if you have signed an agreement that you pay will be calculated as with Employee NI deducted before other deductions?

 

[Terry Wainwright]

I think we're talking about two different things Alan. I'm saying they can't deduct employers NI from the employee's pay (if he's an employee of the agency). They can of course deduct employees NI.

 

[Alan]

My typo - mean't

I couldn't find (I did search) anything that stated it was illegal to deduct Employers NI.

 

[Terry Wainwright]

In that case I think it will take somebody more knowledgeable than me to settle this. I respectfully bow out, and hopefully somebody will come along who can categorically state whether or not it is legal for an employer to pass employer's NI contributions on to an employee.

Back to the main point, I believe they have put Almost in to an umbrella scheme. It would be interesting to see what the outcome of his call to the agency was.