Your Rights as an Umbrella Company Employee

Umbrella companies act as intermediaries between contractors and their end client or agency. They employ freelance workers, who move from contract to contract providing specialist services to different businesses.

UK contractors contribute a huge amount to the economy, providing a flexible workforce that continues to grow. But as the country’s contingency workforce has expanded, so too has the emergence of new legislation to manage the taxation and rights of UK businesses and PLCs. This has led to even more changes as loopholes get exploited and then shut down.

IR35 changes come into force in April this year, targeting disguised employees. That is, those who falsely position themselves as limited company contractors so they can pay less tax. The legislative changes will affect contractors and freelancers who provide their services via a PSC (personal service company). It targets those who should be classed as employees, but aren’t.

However, if an umbrella company employs you, you will not be subject to IR35. So, what rights do you have if you’re employed by an umbrella company?

What are my rights as an umbrella company employee?

  1. When you start working through an umbrella company, they should ensure that your contracted rate of pay is comparable to – or better than – the rate you could expect if you were an employee of the company you provide your services to.
  2. After 12 weeks on the same contract, all workers are entitled to equal treatment under the Agency Worker Regulations (AWR). The key point of the regulations is that those on temporary or fixed-term contracts receive the same basic employment and working conditions as those who’ve been recruited directly. Introduced in 2011, these rules aim to stop the discrimination and workplace unfairness experienced by some people working through recruitment agencies, rather than for the end client.
  3. Your rights include:
  • Comparative pay
  • Paid annual leave
  • Collective agreements
  • Paid time off for antenatal appointments
  • Key elements of pay – i.e. the same pay scales or pay structure
  • A Company Handbook (or similar)
  • Overtime, shift / unusual hours allowances, bonus or commission payments (if applicable)
If you believe you’re not getting what you’re entitled to, contact your umbrella company. They should be able to help and resolve the issues you’re facing. At Danbro, we take pride in extending our family ethos and culture to all our employees, including those who work on temporary contracts. We’ll always act in your best by ensuring your rights get protected and your pay is fair.

What am I entitled to with Danbro’s Umbrella Company?

We’re serious about our employment responsibilities, operating as your employer in every way we can. Employing people is what we do and we want to do it well. With Danbro, you’ll be entitled to a host of exclusive benefits, to ensure you reap the rewards of employment. This includes:
  1. BUPA Cash Plan*
  2. Danbro Rewards
  3. Weekly or monthly payments
  4. Statutory employment rights
  5. Danbro One pension scheme
  6. Exclusive online timesheet portal
  7. No set-up or exit costs
  8. Dedicated HR and customer care teams
  9. Business and personal accident insurance*
  10. Take-home pay calculations
*Terms, conditions and exclusions apply.

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