Umbrella company regulation: what does it mean for you?
- 14 Aug 2023
For all the contractor success stories out there, there are still too many tales of terrible worker experiences at the hands of poor umbrella companies. The truth is, not everyone operates compliantly which is why the upcoming umbrella company regulation is welcome news.
Bring on the regulation
Working under an umbrella company should enable you to enjoy the flexibility and benefits of contracting, without the hassle. After all, that’s why contractors choose to go down this route. But not all companies operate to the same standards.
Now, a consultation will decide how to regulate umbrella companies.
This is great news for you! Following new regulations, you’ll be able to distinguish between the good, the bad, and the ugly in the umbrella market. And the easier it is to identify compliant, employee-focused companies, the smoother your contractor journey will be.
So, why not get ahead and identify the kind of company that can make your umbrella experience a positive one?
What to look for in an umbrella provider
An umbrella company that does the basics is good. But choosing one that goes the extra mile can boost your job satisfaction, work-life balance, and overall career! Here’s what to look for:
Employment rights – As a minimum, you should be granted all the statutory employment benefits that in-house employees receive, including holiday pay, sick pay, and maternity/paternity leave. You should also get the freedom to choose between your own personal pension or a scheme offered by the company.
Insurance –insurance cover should be provided and fully managed on your behalf. Look out for the basics like public liability, professional indemnity, and employers’ liability insurance, plus additional personal accident cover – proof that a company is equipped to protect you across the spectrum.
Perks – Umbrella companies aren’t obliged to provide perks and discounts, but if you can find one that does, chances are they care about your experience – inside and outside of work.
We’ll work well for you
Workwell Umbrella is one of the UK’s longest-established and FCSA-accredited umbrella companies that provides all of the above and more. With Workwell, you’ll have access to our super-convenient and hassle-free online portal that makes contractor life simple.
Discover more about their services here, and to find out what your take-home pay could be before you enquire, check out their umbrella calculator.
Advice
Need more help? Self-employment often means having to navigate lots of different websites with no clear source of truth. As the only not-for profit focused on self-employment, IPSE provides impartial and relevant advice on the topics that matter to you.
Umbrella membership
IPSE Umbrella membership is perfect for individuals who provide their services via an umbrella company. In addition to receiving all the benefits of a Community membership, Umbrella members also have access to vital protections to help them minimise risk and protect their income.
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