When you register with an umbrella company, you become an employee of theirs and can benefit from continuity of employment. This means that your employment relationship with the umbrella company continues even when you move from assignment to assignment or work on multiple assignments at the same time.
This can be a valuable benefit for contractors, as it can help them to maintain a continuous income and access certain employment rights.
What is continuity of employment?
Continuity of employment is defined as a period of continuous service with an employer. In the context of umbrella companies, this means that your employment relationship with the umbrella company will continue even when you move from assignment to assignment or work on multiple assignments at the same time.
What are the benefits of continuity of employment?
There are a number of benefits to continuity of employment for umbrella company employees, including:
- Maintaining a continuous income: Continuity of employment can help contractors to maintain a continuous income, even when they are between assignments. This is because they will continue to be paid by the umbrella company throughout their period of employment.
- Accessing employment rights: Continuity of employment can also help contractors to access certain employment rights, such as the right to sick pay, maternity pay, and holiday pay. This is because they will be considered to be employees of the umbrella company for the purposes of these rights.
- Making it easier to get a loan or mortgage: Continuity of employment can also make it easier for contractors to get a loan or mortgage. This is because lenders are more likely to lend money to people who have a stable employment history.
Continuity of employment is important for contractors because it can help them to maintain a stable financial situation.
When contractors have continuity of employment, they are more likely to have a regular income and access to employment rights, such as sick pay and holiday pay. This can help them to manage their finances and plan for the future.
Continuity of employment can also make it easier for contractors to get a loan or mortgage.
Lenders are more likely to lend money to people who have a stable employment history. This is because they are seen as being less of a risk.
There are a number of factors that can break continuity of employment, such as:
- Taking a break from work for more than one week.
- Changing umbrella companies.
- Being dismissed from your contract.
If you are an umbrella company employee and you are concerned about your continuity of employment, you should speak to your umbrella company. They will be able to advise you on how to protect your continuity of employment and ensure that you continue to benefit from the associated rights and benefits.
Here are some additional tips for contractors who want to maintain continuity of employment:
Avoid changing umbrella companies frequently. Every time you change umbrella companies, you break your continuity of employment. This can make it more difficult to get a loan or mortgage and can also affect your access to employment rights.
Try to avoid taking long breaks from work. If you do need to take a break from work, make sure that it is no longer than one week. Any longer than this could break your continuity of employment.
Speak to your umbrella company if you are concerned about your continuity of employment. They will be able to advise you on how to protect your continuity of employment and ensure that you continue to benefit from the associated rights and benefits.
When does continuity of employment start and end?
Continuity of employment begins when you start your contract with the umbrella company. It ends when your employment with the umbrella company comes to an end. There are a few exceptions to this rule, such as when you take sick leave or maternity leave.
How can Payroll Umbrella Services help?
Payroll Umbrella Services can help you to understand continuity of employment and how it applies to umbrella company employees. We can also provide you with information about the benefits of continuity of employment and how it can help you to achieve your financial goals.
If you are an umbrella company employee, we encourage you to contact us to learn more about continuity of employment and how we can help you.
