Work Permit Employment Issue

[sanyasha]

Hello There,
Following my postgraduate studies in the UK, am Umbrella Services company (Company A) applied for my workpermit in 2005 and I was granted the permit for 4 years. As per instructions from Company A I was advised that I can take any employment I want. I found one with Company B and they made me a full time permanent employee. I did advise Company B that that Company A sponsors my workpermit, however there was not much attention given to look into this matter. Company B paid my salary to Company A deducting tax and NI, Company A deducted tax and NI again and paid me the salary. I was in effect paying double tax and double NI Inspite of me informing relevant HR, managers about the status nothing happened.

Recently Company A warned Company B that they will terminate my work permit if Company B fails to apply for a new one. Company B is now aware of the situation and are dealing with this and advised me that they will apply for my work permit. Due to this all complications, I haven't been paid for the last three months and was sent back home and asked to wait until this is resolved.

Can anyone advice me with regards to my rights? Can I take this case further as I am completely stressed and financially very much affected.
I do not even know at this stage when would I be able to return to work.

Any advice much appreciated. Many Thanks,
sanyasha

[Wanderer]

This sounds like bodyshopping and it's illegal. Big trouble I think.

[try-one]

Sanyasha,
Based on your information, you have been in breach of immigration laws since 2005. Work permits are only valid if applied by your employer and not for umbrella companies to offer contractors to third parties.
Immigration controls are being tightened, and that may be the reason why company A decided to backoff from the arrangement and require compaby B to apply directly.
Regarding your rights, I would advise you review the contract signed with Company A, as it would provide you with the information regarding notice period and references to any indemnity paid by Company A in case you are out of work (to be honest, you are a contractor and no umbrella company would offer a payment when a contractor is out of work...that's how umbrella companies work). Additionally, you should check any contracts you had with Company B, I suspect they requested you to sign a document at least to protect confidentiality of information; I doubt company B signed a contract of employment with you and unless you have it, it would be very difficult to claim any payments from them (most likely you have a contract for services with company B, typical contractor arrangement, you may have a one month notice period, not more).

In general, your situation leaves you with very limited rights from an employment point of view (as contractors are deemed independent agents); from an immigration point of view, your leave to remain is not valid and Company A or Company B are aware of this, the three of you would not benefit from engaging the HO, altough you should consider this in case you have to return to your home country.

Recommendation? Legalize your immigration status in the UK, read the simple guidance available on the HO site and understand what went wrong and understand your options and the risk you have at the moment.