WHAT IS AN UMBRELLA COMPANY?
An umbrella company is generally one that temporarily employs other companies or individuals as “contractors” or “agency workers” on behalf of an employment agency. It allows contractors/agency workers to work multiple assignments through multiple agencies while having a single employer. Most umbrella companies use an employment contract that sets out terms and conditions to employ their workers, which must comply with employment law.
In short, an umbrella company is a limited company that acts as an employer to its contractors or agency workers.
HOW DOES AN UMBRELLA COMPANY WORK?
- Worker A looks for a job at a Recruitment Agency B
- Recruitment Agency B finds work for Worker A, at Company C
- Company C pays Recruitment Agency B for their services and for the wages costs of Worker A
- Recruitment Agency B contracts Umbrella Company D to operate its payroll system
- Recruitment Agency B pays Umbrella Company D the wages costs for Worker A, received from Company C
- Umbrella Company D pays Worker A their wages minus a service fee
WHAT WILL MY EMPLOYMENT STATUS BE?
Under the PAYE option, you will be employed by ALUAS and your IR35 status becomes irrelevant because you will be like a permanent employee (PAYE).
WHAT EMPLOYEE BENEFITS DO I ENJOY?
Holiday pay, sick pay, and a pension scheme that we are required by law to enrol you on. Once you have been enrolled, it is your choice to stay with us or leave. As your employer, ALUAS provides employees with Employer Liability, Product Liability, Public Liability, and Professional Indemnity insurances.
HOW MUCH WILL IT COST ME?
It depends on your circumstances. Typically with the PAYE method, our fee is 4% of the wages with a minimum fee of £15 per week.
WHEN DO I GET PAID?
You get paid every weekday using our fast pay system as soon as your agency has paid us. We understand that every individual circumstance is unique, so we offer same-day payment to you on time, every time, once received.
WHERE DO I SIGN UP?
Simply call us or make an enquiry and we will walk you through the steps, check the legalities, send you an employment contract, and you will be good to go!
If you have made up your mind, you can register here.
IS THERE A REWARD SYSTEM?
Absolutely. As a thank you to any individual or company you recommend us to, we will offer you one week free of our service fee. The free week will be awarded after the new contractor or agency worker has signed up and been paid for one full week. Refer and earn up to and over £100!
HOW DO I TERMINATE MY CONTRACT?
You can request a P45 from us at any time to end your employment. There is no joining or leaving fee.
If there is anything we haven’t covered, please get in touch.