Holiday pay and umbrella companies – the facts

One of the downsides to being self-employed is that you don’t get vacation pay or sick pay. You have to save your own money to get you through hard times when you will need a rest or take time off work. But if you’re a contractor and use an umbrella company,this company will cover you vacation pay. They are obligated to do this because they act as your employer and so have to follow the requirements for matters employers have to provide for employees. Read on if you want to discover how it works for contractors.

Using an umbrella company makes you a PAYE employee. All fulltime PAYE employees are eligible for 5.6 weeks paid vacation each year. To put it differently,you get 28 days of paid vacation,which is 5.6 times the typical 5-day working week. Bank holidays might or might not be included in these 28 days. {If you work or you don’t work for the entire year