IPSE (the Association of Independent Professionals and the Self-Employed) has said it is “deeply concerned” by reports of umbrella workers not receiving their fair holiday pay from umbrella companies. It is reaching out to the FCSA to ensure transparency and resolve the issue and, in the meantime, has urged umbrella workers to check if they are owed pay and claim it quickly if so.

Derek Cribb, CEO of IPSE (the Association of Independent Professionals and the Self-Employed), said: “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.

“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.”