What is an Umbrella Company?

Where you choose to work through an umbrella solution, you become employed by the umbrella company and are able to work on numerous different assignments for agencies and end clients, without changing employers.

The employment with the umbrella company is permanent and ‘overarches’ any and all fixed term assignments undertaken.  This provides continuity of employment for you, as well as reduced admin for both you, and the agencies that place you.

The contractual chain

You’ll have an employment contract with the umbrella company that offers full UK employment rights.
The umbrella will engage under a contract for services with the agency which in turn, will have a contract for services with the end hirer.


Payment for the work you do follows the same contractual chain.  The end hirer pays the agency which in turn, pays the umbrella company for its services, being the provision of the services of its employee(s).  This is the ‘assignment fee’ or ‘assignment rate’.

From the assignment fee, the umbrella company deducts its profit margin and calculates any employment related costs (e.g. Employers NIC), after which, it calculates the Gross Salary payable to you.

From the Gross Salary, the umbrella deducts Income Tax and National Insurance, and then pays you a Net Salary.

The benefits of JSA

  • Employee Benefit scheme available through JSA
  • Compliance with employment and fiscal laws
  • Statutory employment rights – statutory sick pay, maternity pay, paternity pay
  • Options for holiday pay – choose to have paid out weekly or accrued for when you need it
  • One employment and tax code across multiple assignments/clients
    • meaning no need for emergency tax
    • assist with credit applications
    • tenancy and employment references etc
  • Full contractor insurances (PI, EL and PL)
  • Accident insurance also available
  • Access to Customer Services team six days a week from 8am to 8pm weekdays and 9am to 12pm Sat