On 11th February 2010, it was announced that the PAYE umbrella company, Albany had gone into administration. For contractors that used Albany’s umbrella services it has meant they have been left unpaid. Carter Backer Winter (CBW), which has been placed in charge of the company’s assets, said cash flow problems had led to the firm running into difficulties.
The REC has advised contractors affected by the umbrella company entering administration to contact the administrators, Carter Backer Winter. It is now the responsibility of the administrators to pay any outstanding monies owed to contractors, however full settlements are unlikely.
Fiona Coombe, director of professional services at the REC, said: “Ultimately in the case of umbrella arrangements it is the choice of the worker as to who employs them. In cases of administration where the worker is employed by the umbrella company they would be able to claim unpaid wages from the administrator, who should write to them directly about this.”
The REC has also advised recruitment firms with contractors contracted through Albany to contact administrator Carter Backer Winter before processing any payments.
Independent Contractor Services have been providing solutions for UK contractors including Limited Company and Umbrella Services since 2002.
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