Guest Blog by Contractor Umbrella
What happens if my umbrella company goes bust? – a scenario no one wants to have to think about, but it’s certainly worth being able to spot the signs and know what action to take.
It is important to stress that an umbrella company going bust isn’t a common situation, so it shouldn’t put you off contracting through one, it’s just good to know what to do should you find yourself in this position.
What are the signs that an umbrella company might be going bust?
There aren’t always clear-cut signs that an umbrella company is struggling, however, if there are financial issues then it’s likely your pay will be affected.
There may be a delay in your payments or perhaps you’re not getting paid the full amount all in one go for example.
If you have concerns around your pay, you are well within your rights to contact your end client and/or agency to see whether they have paid the umbrella for your services – if they confirm that the umbrella has received payment when you haven’t, this could certainly be a sign that something’s not right.
There are some things you can do to protect yourself from losing as much money if you do find yourself in this situation, such as keeping on top of your timesheets and making sure they are filled out and submitted as soon as possible.
What do I do if my umbrella company has gone bust?
Your umbrella company should let you know if they have gone out of business and then give you an idea of what you can do next if you are owed money.
It might even be worth contacting your end client directly if you’re still waiting on payment – the client could still be paying money into the umbrella for the work you have completed.
If you are owed money you’ll need to register your debt with the administrator in charge of dealing with the insolvency – you may be contacted directly about this, or you might need to find out this information for yourself.
However, this doesn’t necessarily mean you’ll get your payments – unfortunately, there is a chance you won’t receive what is owed to you.
How to choose a good umbrella company
It’s most certainly worth doing your research when it comes to picking an umbrella company – choosing one that’s been in business for a long time for example, means that it’s more likely that they have the knowledge and experience needed to run a successful company.
Here’s what else to look out for:
- Good reviews. Whether it’s online reviews and testimonials or word of mouth, you need to get an insight into what people really think of the umbrella company you’re considering.
- Do they provide a personal service? Having a go-to person who deals with all of your work makes communication so much easier.
- Do they have awards? Recognition for the work they do is always a good sign when it comes to choosing the best umbrella company – make sure that their awards are fairly recent too.
- Are they accredited by industry-recognised trade bodies? Whether it’s being an FCSA member or an APSCo Trusted Partner, this is an additional layer of confidence for the supply chain.
Hassle-free and straight-talking, Contractor Umbrella has been helping contractors since 2002 and is now one of the most trusted umbrella companies in the UK guaranteeing peace of mind, absolute compliance and complete security for all its employees.
Award-winning, Contractor Umbrella is one of the longest-standing and most respected umbrella companies in the UK and is both fully FCSA accredited and an APSCo Trusted Partner