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There have been worrying reports regarding umbrella workers not receiving their fair holiday pay from their umbrella company.

As a result, the Association of Independent Professionals and the Self-Employed (IPSE) has contacted the FCSA to help with resolving any issues and is urging umbrella company contractors to check whether they are owed any pay.

Derek Cribb, CEO of IPSE, commented, “We are deeply concerned by reports that umbrella workers may not be receiving their full entitlement to holiday pay. We are reaching out to the FCSA to develop clear best practice guidance on holiday pay for both individuals and umbrellas to prevent such problems arising in future.”

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Cribb added, “In the meantime, we urge people who have worked through umbrella companies in the last year to check if they are owed holiday pay – and claim it quickly, as many could be affected by deadlines at the start of next month. If there are problems with claiming your rightful holiday pay, it may also be worth considering taking the matter to an employment tribunal. But, again, you may have to act before the end of this month.

“The IR35 changes have resulted in a significant increase in the number of people – including many IPSE members – working through umbrella companies. It is therefore more important than ever that there is full transparency in umbrella arrangements to ensure self-employed people in these engagements are treated fairly.”

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