The first temporary workers and contractors will be entitled to receive the same employment rights as permanent staff under the Agency Workers Directive from December 24, as the first 12 week qualifying period finishes.
Under the legislation, following 12 weeks in an assignment any temporary worker or contractor has to receive the same rate of pay and entitlement to holidays and breaks as permanent employees. As the legislation came into force on October 1, December 24 will be the date that the first temporary workers qualify to receive the new rights.
Although the rights are aimed more at agency workers, contractors could also find themselves affected so it is important to have an understanding of the rules and be aware of anything that may affect them.
As well as understanding changes to the legislation which affect temporary workers, contractors also have to deal with legislation on taxation and payments such as IR35, which is why many contractors choose to use the services of an umbrella company.
Umbrella companies such as pulseumbrella can help contractors make the most out of their working lives. Working as part of an umbrella company means that contractors can have all their financial and tax matters arranged for them, and ensures that every contractor has peace of mind about being IR35 compliant and paying the correct amount of income tax and national insurance thanks to pulseumbrella’s contractor calculator.
Pulseumbrella also offer contractors a number of additional benefits including holidays, maternity/paternity pay and an optional pension scheme so contractors gain all the benefits offered by permanent employment combined with the freedom of contracting.