Umbrella employment is generally simple and registration should be quick and easy, but there are some things that your umbrella needs to do before they can pay your contractors, so in this article, we’ll look at umbrella company registration and what recruiters can do to help it go smoothly.
First contact
The first thing the umbrella company will need to do is contact your contractor and explain umbrella company employment to them, answer any questions they might have and complete a pay illustration so they know what to expect.
Umbrella employment is simple once you understand it, but most new contractors are not familiar with it, and often have a great many questions. It’s very important that this stage is handled well and that it’s given enough time, to avoid misunderstandings and confusion later on. For this reason it would usually be done by phone, so the umbrella can tailor their approach to each contractor and check understanding before they sign up.
Registration
Once your contractor understands umbrella employment and is happy to be employed by the umbrella company, they’ll need to register. This is similar to the onboarding process followed by most UK employers, with the obvious difference that the umbrella won’t usually meet their employees in person.
Most of the registration process will be completed online and an experienced umbrella company will have made it as quick and easy as possible. During registration the contractor will be asked to:
Provide their personal details, including bank details for payments
Sign a contract of employment
Prove their right to work in the UK
The umbrella will be unable to pay the contractor until registration is complete and their legal obligations have been met.
How to get your contractors paid faster
So, what can you do as a recruiter to make this process run more smoothly, and get your contractors paid faster?
Make sure your contractors are expecting a call
If you’re passing your contractors’ details to the umbrella, make sure the contractor is expecting a call and is likely to be available to talk. Make sure the umbrella knows when they should call, particularly if the contractor is working at a client site during office hours.
Make sure they know their registration is important
In order to avoid any delays, it’s important that the contractor gives their registration their immediate attention. They will need to provide their details, upload documents, electronically sign a contract and complete a Right to Work process and their employment won’t begin until they’ve done it.
Use the right language when explaining umbrella pay
If the contractor has queries or concerns about how they will be paid, this can cause delays while they decide if they want to sign up.
By far the most common issue happens when the contractor has been given the assignment rate, which is paid to the umbrella company, as their pay rate.
Even when it’s explained correctly later, this initial expectation can be difficult to overcome, and it can lead the contractor to believe they are paying the umbrella company’s margin and costs, which many are understandably reluctant to accept.
Ensuring that umbrella pay is explained correctly from the start will make registration smoother, and mean you’ll have fewer disappointed contractors or delayed payments.
If you have questions or if we can help in any way, please call our expert team on 01296 468483 or email info@orangegenie.coim.