Unpaid IT contractors left in limbo by Plutus Payroll shutdown

IT contractors have been left in the dark after a payroll operator suspended business activities yesterday.

Plutus Payroll is an outsourced payroll management service used by contractors instead of recruitment agencies that offers zero-fee services, with a heavy emphasis on IT work. CRN understands there are upwards of 2000 contractors using Plutus’ services.

Last night, the company informed contractors it was suspending business activities due to a commercial dispute, effective immediately. Plutus said that some payments may be affected that were scheduled between 27 April to 2 May.

“Please be assured that we are working diligently to resolve the dispute and will keep you informed of our progress. Our aim is to recover sums that may be owed to you,” the company wrote in an email to contractors.

“We would encourage all of our contractors to contact their recruiters or employers to make alternate arrangements for their pay. Our recruitment partners have been informed and are standing by to assist you as well.”

Most of the content on Plutus’ website has been removed, which now displays the same message sent to contractors last night.

CRN has been in contact with multiple Plutus contractors concerned they may end up out of pocket as a result of Plutus’ closure. One contractor told CRN they hadn’t been paid in the past fortnight, and only received a payslip without actually being paid.

Similar sentiments were shared on Whirlpool, with contractors taking to the online forum to question the fate of the company and whether they will eventually be paid.

Plutus was acquired by an investment firm called Synep in March, leading to three of its senior executives leaving the business to start up a new payroll firm.

Synep has since removed information about its investment portfolio from its website.

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