Umbrella vs agency payroll

In some instances, you will be able to use a recruitment agency’s PAYE system to receive your pay as an alternative to using an Umbrella company.

It’s important to make the right decision about which working option will suit you best. Take-home pay is an important factor, but it’s not the only consideration. There are other aspects which will have an impact on your decision.

Your rights

Working through an agency payroll does not always give you the same employment rights as an Umbrella company. If you become an employee of an Umbrella company you will have access to benefits such as sick pay, holiday pay, maternity/paternity leave and access to a company pension. You will need to clarify with your agency what your employment status will be and what benefits you will be entitled to before making your final decision.

Continuous employment

If you use agency PAYE you will have to switch to another agency’s payroll if you take on another contract offered by another agency, so it’s a little more hassle.

As an Umbrella employee you will be able to switch seamlessly between contracts. Not only does this save paperwork when moving to new assignments, but it also enables you to build up a record of continuous employment which is helpful when applying for mortgages and other types of loan.

Making the right choice

We are here to help you make the choice that suits you best. You can find out more about how an Umbrella company works and how we calculate your pay.  Or you can speak to a member of our team for tailored advice and information to help you make an informed decision.  Please get in touch on 01244 684700.