Workers who are currently using an Umbrella like/Payroll Company are at risk of having their wages frozen or seized by the Liquidators if the Company that they are using closes. 

If we change their rights, the Liquidated Company will still be able to pay any remaining salaries to their workers as usual. 

Help us Help you! Please sign and pass on to friends and family. Avoid distress if your umbrella company closes down. 

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Story of 'What Happened at L&S': Per the situation, your wages are being held by the Liquidators due to the closure of the sister Umbrella Company that you were getting paid via. 

As you already know, back in April, 2023; L&S changed their Umbrella Systems to a PAYE model, and you can still claim work related expenses but at the end of the tax year through self assessment. This makes everything more compliant for you and you worry less about tax bills that may arise from Self Assessment and/or receiving a massive bill from HMRC at the end of the Tax Year. This meant that our Umbrella Company was no longer needed and we agreed to close it down. 

Since L&S was a family of 3 (3 sister companies), we were under the impression that closing 1 (the Umbrella) will not have any impact on the workers and trade would continue as usual. Unfortunately, this was not the case. After closure, the firm who has been given the task of completing the Liquidation of Our Company has frozen workers' funds whether they belong to the Liquidating Company or not.

Recruitment Agencies made payments to the Bank Account of either of our sister companies and not that of the liquidating Umbrella. But for us to be able to access any funds, the Liquidators and the Solicitors have to agree to payments being released by providing us a Release Letter that we can send to our Bank. This untimely and very distressing process includes proving that our workers moved companies and been working for our sister company. 

We have since confirmed the company, which the workers worked via to recruitment agencies so that agencies that invoiced us in the name of the liquidating company will have the opportunity to cancel that invoice and raise a new invoice for the payment already sent. 

Workers were informed they didn't need to do anything as the change between companies was internally arranged. To prepare for the liquidation, PAYE was in fact, reported via our sister company, from last tax year.

Admittingly, L&S were unable to prepare for such issues as the company was under the impression that the workers will NOT be affected considering the fact that they were working under either of the sister companies for most of last tax year till date prior to the Liquidation. 

Since the changes have happened drastically, we did not have enough time to request for the Recruitment Agencies to effectively reflect the changes before the funds were sent to us. Sadly, this led to workers and our colleagues'  in the office wages to remain unpaid. They have caused a lot of hardship to workers. Holding on to workers wages for weeks unending is unjustifiable.

Liquidators should have Limited Rights to Freezing Workers' Wages!

Add YOUR Voice to OURS. Sign this Petition Now and we will make sure that the Liquidators, the Court and the House of Parliament sees it.

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