The Working Time Regulations 1998 set a 48-hour weekly average limit for UK workers. As an umbrella contractor, that limit applies to you. Most umbrella companies include an opt-out in their standard contract, so you may have already waived the limit without realising it.
This page explains what the opt-out means and how to check whether you’ve signed one. For the rest of the picture, read the UK working time rules guide.
Does the 48-hour limit apply to umbrella contractors?
Yes. Umbrella contractors are workers under UK law, so the 48-hour weekly limit applies. Your umbrella company is your employer and must follow the Working Time Regulations 1998. There is no special exemption for umbrella contractors or fixed-term assignments.
The average is worked out over a 17-week reference period. So a short spell of longer hours does not automatically break the rule. But your average over those 17 weeks still has to stay at or below 48 hours.
If you average more than 48 hours, your umbrella needs a signed opt-out. Without it, they are in breach.
Working through an accredited umbrella company means you are on PAYE employment. All the working time protections that come with employment still apply.
What is a working time opt-out agreement?
A working time opt-out is a written agreement that lets you work beyond the 48-hour average. You sign it voluntarily. Your employer cannot force you to sign. You can withdraw from the opt-out at any time with at least 7 days’ notice.
The opt-out only covers the 48-hour weekly limit. It does not waive your daily rest, weekly rest, or annual leave rights. Those cannot be signed away.
The umbrella-specific reality: you may have already opted out
Most umbrella companies include a working time opt-out in their standard contract of employment. That is legal. Many contractors sign the whole contract without reading every clause, so they miss the opt-out completely.
This does not mean your umbrella did anything wrong. The opt-out is standard in many employment contracts across the UK. It just means you should know it is there.
How to check:
- Find your umbrella employment contract
- Search for “working time opt-out” or “48-hour” or “maximum weekly working hours”
- If there is a clause waiving the limit, you have opted out
If you cannot find your contract, ask your umbrella to send you a copy. They must provide one on request.
Does the opt-out actually matter for contractors?
For most umbrella contractors, the opt-out is just paperwork in the background. Most assignments run standard hours, so you will not average 48 hours a week and it has no practical effect.
It matters when:
- You are on a demanding assignment with regular long hours
- You have multiple concurrent contracts that push your total above 48 hours
- Your umbrella is pressuring you to take on extra hours without written agreement
If you are regularly working beyond 48 hours with no opt-out on file, that is a breach. The Fair Work Agency launched on 7 April 2026. It now handles working time enforcement. It replaced the previous BEIS enforcement team.
Opt-in vs opt-out: what changes
| Without opt-out | With signed opt-out | |
|---|---|---|
| 48-hour average limit | Applies. Umbrella cannot require you to exceed it. | You can agree to work beyond 48 hours. |
| Daily rest (11 hours) | Cannot be waived | Cannot be waived |
| Weekly rest (24 hours) | Cannot be waived | Cannot be waived |
| Annual leave | 28 days minimum. Cannot be waived. | 28 days minimum. Cannot be waived. |
| Employer can require overtime | Only up to the 48-hour average | Yes, subject to any contract limits |
| Your right to withdraw | N/A | Yes. Minimum 7 days’ notice in writing. |
Rest rights that cannot be waived
Even with a signed opt-out, these protections still stay in place:
- Daily rest: 11 consecutive hours between working days
- Weekly rest: at least 24 hours every 7 days, or 48 hours every 14 days
- Rest breaks: a 20-minute break if you work more than 6 hours in a day
- Annual leave: 28 days (including bank holidays) per year
These rights come from the Working Time Regulations 1998. No employment contract can remove them.
How to withdraw from a working time opt-out
You have the right to withdraw from a working time opt-out at any time. Here’s how:
- Email your umbrella
- Say clearly that you are withdrawing from the working time opt-out
- Give at least 7 days’ notice. Check your contract, because it may let the employer extend this to 3 months.
- When the notice period ends, the 48-hour average limit applies again
Your umbrella cannot dismiss you or treat you unfairly because you withdrew. The GOV.UK working hours guide confirms this protection.
Opting back out again
If you want to opt out again after withdrawing, you need a new written agreement. You cannot agree to waive the limit verbally. It must be in writing.
What happens if your umbrella breaks the rules?
Your umbrella cannot require you to work beyond 48 hours without a valid opt-out. If they do, that is a breach. You can:
- Raise it with your umbrella in writing first
- If it is still unresolved, contact the Fair Work Agency to report the breach
The Fair Work Agency took over working time enforcement on 7 April 2026. It has powers to investigate and take action against employers who breach the regulations.
For more on your day-one protections, read your rights as an umbrella contractor.
DASA is accredited by FCSA, Professional Passport and SafeRec. All three require members to follow Working Time Regulations in full. Check your take-home pay with our umbrella salary calculator before signing with any umbrella.
FAQs
Does the 48-hour working week apply to umbrella contractors?
Yes. Umbrella contractors count as workers under UK law, so the 48-hour weekly average still applies. Your umbrella company is your employer, and it has to follow the Working Time Regulations 1998.
What is a working time opt-out agreement?
A working time opt-out is a written agreement that lets a worker go beyond the 48-hour weekly average. It has to be signed voluntarily. You do not have to sign it, and you can withdraw with at least 7 days’ written notice.
Do umbrella companies include a working time opt-out in their contracts?
Many do. In a lot of cases, it is tucked into the standard employment contract, so contractors sign it without spotting it. Look for wording like "working time opt-out" or "48-hour" in your contract.
Can I withdraw from a working time opt-out?
Yes. Tell your umbrella company in writing that you want to withdraw from the opt-out, and give at least 7 days’ notice. Your contract may allow the employer to extend that notice period to as much as 3 months.
Who enforces working time rights for umbrella contractors?
The Fair Work Agency (FWA), which launched on 7 April 2026, handles enforcement for working time breaches. It replaced the former BEIS enforcement team. If your umbrella is not following the rules, you can report it to the FWA.
