Becoming an employee of an umbrella company
When you register with an umbrella company, you become an employee and can access statutory employment rights, including Sick Pay and Maternity/Paternity Pay.
To help you understand the statutory employment rights available to employees of compliant umbrella companies, we have created a short overview that includes essential information such as your entitlement, eligibility, and how to claim.
For more detailed information, please visit the government’s website.
Sick Pay
If you are too ill to work, you could be eligible for £116.75 per week Statutory Sick Pay (SSP) paid by your employer for up to 28 weeks. SSP is paid the same way as your regular wages, for example, weekly or monthly, and Tax and National Insurance will be deducted. If you qualify for SSP, you will be paid for all the days you are off sick that you would usually have worked, except for the first three days.
Eligibility
To qualify for SSP, you must:
- Earn an average of at least £123 per week
- Be classed as an employee and have done some work for your employer (for example, your umbrella company)
- Have been ill for more than three days in a row (including non-working days
You must tell your employer you’re unable to work before the deadline they set or within seven days if they have not set one. If you are unsure of the deadline, please contact your umbrella company.
If you are off work for more than seven days in a row (including non-working days), you must give your umbrella company a fit note (also called a sick note). You can obtain a printed or digital fit note from the following healthcare professionals:
- GP or hospital doctor
- Pharmacist
- Registered nurse
- Occupational therapist
- Physiotherapist
How to claim
You must tell your umbrella company by the deadline to claim SSP. Please contact your umbrella company to find out how to notify them that you would like to claim SSP and the deadline. However, if your employer needs something in writing, you can use form SC2.
Maternity Pay
When you take time off to have a baby, you might be eligible for:
- Statutory Maternity Pay
- Statutory Maternity Leave
- Paid time off for antenatal care
- Extra help from the government
Statutory maternity leave is 52 weeks, which is made up of the following:
- Ordinary maternity leave – first 26 weeks
- Additional maternity leave – last 26 weeks
You do not have to take 52 weeks, but you must take two weeks’ leave after your baby is born (or four weeks if you work in a factory).
Statutory Maternity Pay (SMP) is paid for up to 39 weeks and usually starts when you take maternity leave. If eligible, you will get:
- 90% of your average weekly earnings (before tax) for the first six weeks
- £184.03 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks
SMP is paid the same way as your wages, for example, weekly or monthly, and tax and National Insurance will be deducted.
You can check what maternity leave and pay you are eligible for on the government’s website.
Eligibility
To qualify for statutory maternity leave, you must:
- Be an employee not a ‘worker’
- Give your employer (for example, your umbrella company) the correct notice
To be eligible for SMP, you must:
- Earn at least £123 a week on average
- Give proof you are pregnant and the correct notice
- Have worked for your employer continuously for at least 26 weeks, continuing into the ‘qualifying week’ (the 15th week before the expected week of childbirth)
How to claim
To claim statutory maternity leave, you must tell your employer when you want to start maternity leave and when the baby is due at least 15 weeks before your due date. You may be asked to provide this in writing. Your employer has 28 days to confirm your start and end dates.
To claim SMP, tell your employer when you want your SMP to start and notify them that you want to stop work to have a baby. You must provide proof you are pregnant and give your employer at least 28 days’ notice. You may be asked to provide this in writing. Your employer must confirm whether you are eligible or not within 28 days. If you qualify, your employer will also tell you when your SMP will start and stop and how much you’ll get.
Paternity Pay
When you take time off because your partner’s having a baby, having a baby through a surrogacy arrangement or adopting a child, you could be eligible for:
- Paternity pay
- Shared parental leave and pay
- 1 or 2 weeks of paid paternity leave
If the baby is due after April 6th 2024, or on or after April 6th 2024, for adoption, you can take one or two weeks ‘ leave. A week of leave is the same number of days that you usually work in a week. For example, if you only work on Wednesdays and Thursdays, then a week of leave is two days.
The statutory weekly rate for paternity pay is £184.03 or 90% of your weekly earnings – whichever is lower. Paternity pay is paid the same way as your wages, for example, weekly or monthly, and tax and National Insurance will be deducted.
Eligibility
To be eligible, you must be taking time off to look after the child and be one of the following:
- The father
- The husband or partner of the mother (or adopter) – including same-sex partners
- The intended parent (if you’re having a baby through a surrogacy arrangement)
- The child’s adopter
It is important to note that you need to meet extra conditions to qualify for pay and leave.
To qualify for paternity leave, you must:
- Be an employee
- Have been continuously employed by your employer (for example, your umbrella company) for at least 26 weeks up to any day in the ‘qualifying week’
- Give the correct notice
The ‘qualifying week’ is the 15th week before the baby is due. Please note, this is different if you adopt.
To qualify for paternity pay, you must:
- Earn an average of at least £123 a week (before tax)
- Be employed by your employer up to the date of the child’s birth
- Give the correct notice
- Have been continuously employed by your employer (for example, your umbrella company) for at least 26 weeks up to the end of any day in the ‘qualifying week’
The ‘qualifying week’ is the 15th week before the baby is due. Please note, this is different if you adopt.
How to claim
Both paternity pay and paternity leave can be claimed through your employer, and you must give at least 15 weeks’ notice. It is important to check with your employer about how to claim, as some umbrella companies have their own form you are required to complete. If your umbrella company does not have its own form, you can complete an online form and send it to your employer.
Are you an employee of Churchill Knight Umbrella?
The information on this page is intended to provide a brief overview of statutory employment rights available to umbrella company employees. To find out if you are eligible and how to claim statutory payments, please contact your employer. The government’s website provides more detailed information about statutory Sick Pay and Maternity Pay/Paternity Pay (links in the text above).
If you are an employee of Churchill Knight Umbrella and would like more information about statutory employment rights and statutory payments with an umbrella company, please contact us.
If you are not an employee of Churchill Knight Umbrella, please get in touch with your current employer for further information.
Churchill Knight Umbrella
Churchill Knight Umbrella is a leading umbrella payroll provider for contractors and freelancers in the UK. We have helped thousands of contractors get paid by providing a compliant, transparent and trustworthy payroll service.
If you’re a contractor or freelancer looking for an umbrella company in the UK, you’ll be in the best hands with Churchill Knight Umbrella. We’re pleased to be accredited by the FCSA and were one of the first umbrella companies in the UK to have a SafeRec certification. SafeRec uses AI to cross-reference RTI with payments made to ensure all deductions are compliant. Each time our employees are paid, they will also have access to a payslip audit report to check that all deductions are legal and correct.
To request a take-home pay calculation or to learn more about our umbrella service, please call our friendly team on 01707 871622.
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