Almost all workers are entitled to 5.6 weeks paid holiday per year, and this includes contractors who are engaged through a recruitment agency. Where employment is outsourced to an umbrella company, the umbrella is responsible for ensuring the employees entitlement to paid leave, which is one reason among many why it’s so important for recruiters to partner with the right umbrella company.

A good umbrella company specialises in employing contractors, and they have a legal and moral duty to safeguard the wellbeing of those employees. Ensuring that your contractors have the opportunity to take paid time off is an important part of that.

News stories about contractor holiday pay

Reports that some umbrella companies have failed to provide the right amount of holiday leave or holiday pay to their employees, or that either has been refused because it wasn’t taken in time, are of great concern to us, because this duty of care is such an integral part of what we do as an umbrella company employer.

Recent legal cases have led to focus on the position on holiday pay, confirming an employer’s obligation to specifically and transparently give employees the opportunity to take their paid annual leave entitlement, encourage them to do so, and inform them if their entitlement to paid leave will expire.

How does this affect recruiters?

If your contractors are employed by an umbrella company, your responsibilities stop at the usual due diligence, and once you’re satisfied that umbrella is doing everything it should it’s up to them to ensure your contractors are able to take paid leave. But that doesn’t mean you don’t have to care about it.

In this competitive, “candidate led” environment, it’s never been more important to look after your contractors. Looking after their wellbeing means they’ll take less time off sick, and do a better job for your clients while they’re working. They’ll also be less likely to leave, either for a different kind of work or an alternative contract.

Working with an umbrella company who care about their employees’ wellbeing is a great way to protect you from legal issues, but it also makes managing and retaining contractors a lot easier.

Where there’s no umbrella company involved

Where you are engaging contractors directly through agency PAYE, you will be responsible for ensuring they have the right amount of holiday leave and holiday pay.

What are your contractors entitled to?

As UK employees, your contractors are entitled to a minimum of 5.6 weeks paid holiday per year. for full time contractors working 5 days a week, this amounts to 28 days

If your contractors are employed by Orange Genie Umbrella

We’re not content with doing the legal minimum, and we’re determined to be a positive force in our employees’ lives. We give our employees the choice about when to take their paid leave entitlement and encourage them to do so throughout the year.

We also provide a whole host of additional benefits and services designed to help them manage and improve their health and wellbeing, including 24/7 GP appointments, professional counselling on a confidential helpline and a range of free lifestyle tools.

If you have questions or if we can help in any way, please call our expert team on 01296 468483 or email info@orangegenie.com