Feeling under the weather?

Feeling under the weather?

Feeling under the weather?

Everything you need to know about umbrella company sick pay.

Sick pay is one of the reasons contractors choose to operate through an umbrella company. The Winter period means germs everywhere and for contractors that can spell trouble. Generally for contractors, a period off work means no pay meaning people often either struggle into work when they really should be recovering.

Under an umbrella company arrangement, contractors are employees of the umbrella company and are, therefore, entitled to the same statutory sick pay as any other employed person.

What is Statutory Sick Pay (SSP)?

Statutory sick pay makes sure that when employees are off work due to sickness they are not left with no income.

As an employee you are entitled to statutory sick pay (SSP) in line with the most recent government levels.

How does it work?

First 3 days of sickness The first 3 working days of sickness absence are considered to be ‘waiting days’ and these are not paid. If you’ve been off sick for 4 or more days in the last 8 weeks and weren’t paid for your waiting days, the first 3 days of your next sickness absence will be paid SSP.
Day 4 – Week 28 You’ll be paid SSP for every normal working day from day 4. You’ll need to provide self-certification from day 4 to day 7 (HMRC have a form for this here) and a fit note to cover every day of absence if your sickness lasts longer than 1 week.
Week 23 If your sickness is expected to last longer than 28 weeks, we will send you for SSP1 to support your application for Universal Credit or Employment and Support Allowance (ESA).
After week 28 You won’t receive any more SSP.
To be eligible for SSP you must:
  • be classed as an employee and have done some work for your employer
  • have been ill for at least 4 days in a row (including non-working days)
  • earn an average of £118 a week or more
  • tell us you’re sick before you’re due to start work on the first day of your sickness
You won’t qualify for SSP if:
  • you have received the maximum amount of SSP (28 weeks)
  • you are getting Statutory Maternity Pay
  • you’ve had a continuous series of linked periods of sickness that lasts more than 3 years



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Your payslip explained

Your payslip explained

Your payslip explained

When you contract through an umbrella company, your payslip will look a little different from payslips you might have received as a permanent employee. The example payslip below gives explains what all the payments and deductions you might see on your payslip are.

Umbrella company payslip
Umbrella Payslips Explained


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Umbrella company holiday pay

Umbrella company holiday pay

Umbrella company holiday pay

Whenever there is a holiday period coming up, you may well be thinking about the holiday you need to take to spend time with your family. Contractors can find themselves facing a period of no work and, therefore, no pay when the festive season approaches.

One of the great things about contracting through an umbrella company is that you’re entitled to 28 days paid holiday per year, just like all employees. Unlike holiday pay through standard employment, you have two options for how you receive your holiday pay.

Holiday pay for umbrella company contractors

Option 1: Holiday pay in advance

This is our default option and is what most people choose. You’ll be paid 12.07% of your pay as holiday pay each month in advance of you taking holiday. This means when you do take holiday you won’t get any additional pay.

Option 2: Accrued holiday pay

You can choose for your holiday pay each month to be put aside in a separate pot. You can claim from this pot when you need to take leave. It’s your money to claim whenever you need it.

Some umbrella companies will only offer one of these options, so it’s important you check what’s available and whether you can change your mind before choosing your umbrella company.



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