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Any contractor employed through an umbrella company will sign an overarching contract of employment. In essence, this means that the contractor becomes a permanent employee of the umbrella company – it provides continuity of employment during and between different contracts.

This overarching contract of employment allows an umbrella company to pay you as a permanent employee, which is one of the chief benefits of an umbrella company – you’re paid through the PAYE system, with tax and National Insurance taken care of by the umbrella, greatly simplifying the administration surrounding contract work and avoiding the need to submit a tax return if your income is solely through the umbrella company. It also guarantees the contractor the same rights as any other permanent employee – namely sick pay, statutory parental pay, pension and holiday pay.

An overarching contract of employment requires several components to be considered a true contract of employment. It will guarantee a minimum number of hours – usually 336 a year, equivalent to one day a week – and require any shortfall in a year to be paid to the contractor. The contract must also make a provision for holiday pay, in compliance with the Working Time Regulations. Finally, there must be mutuality of obligation, which is a key component of any employee-employer relationship – in plain English, this means that both the umbrella company and the contractor have obligations to each other.

Why Choose Contractor Umbrella?

Contractor Umbrella is the hassle-free, straight talking umbrella company that provides umbrella employment for UK based contractors and freelancers. Independently voted as the best umbrella company by the readers of Contractor UK.

As one of the most trusted umbrella companies in the UK, we guarantee our employees peace of mind, absolute compliance and complete security. We are one of the longest standing and most respected umbrella companies in the UK.

If you’d like to find out more, call us on 01206 591 000 or request a call back by completing our online form.

Benefits of working through Contractor Umbrella;

  • Fast and easy registration –  be ready to work in 24 hours, simply register online and we’ll take care of the rest.
  • Calculate your take home pay – use our online calculator to find out how much you could be taking home through Contractor Umbrella.
  • Same day payments – We offer same day payments as standard providing funds are received into our account by 9am, for no additional fee.
  • Our Service Guarantee – is our guarantee that you will be looked after at every step of the way.
  • Flexible Limited Company accountancy – when you sign up to our sister company Dolan Accountancy, you can transfer to Contractor Umbrella when umbrella employment better suits or your assignment sits inside IR35.
  • Employee Benefits at Contractor Umbrella there are many benefits available to you as our employee including Childcare Vouchers, our Employee Rewards Scheme, Group Pension Scheme, Foreign Currency Exchange, Contractor Accommodation, Contractor Mortgages and much more.
  • Expert Contractor Support Team – Every employee of Contractor Umbrella has access to our expert Contractor Support Team who are available to deal with any queries that you may have. You can get in touch with the Contractor Support Team, through the online chat, by email or by telephone.
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