The Working Time Regulations 1998 set a 48-hour weekly average limit for UK workers. This limit applies to you as an umbrella contractor. Most umbrella companies put an opt-out in their standard contract. You may have already waived the limit without knowing.
This guide explains the opt-out. It also shows you how to check if you signed one. For the full picture, read the Working Time Regulations UK guide.
Does the 48-hour limit apply to umbrella contractors?
Yes. Umbrella contractors are workers under UK law. The 48-hour weekly limit applies to you in full. Your umbrella company is your employer. It must follow the Working Time Regulations 1998. There is no exemption for umbrella contractors or fixed-term assignments.
The law calculates the average over 17 weeks. Short stretches of longer hours do not break the rule by themselves. But your average over those 17 weeks must 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.
When you work through an accredited umbrella company, you are on PAYE employment. All working time protections that come with employment apply to you.
What is a working time opt-out agreement?
A working time opt-out is a written agreement. You choose to work beyond the 48-hour average. You sign it by choice. Your employer cannot force you. You can withdraw at any time. Give 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. You cannot sign those away.
The umbrella-specific reality: you may have already opted out
Most umbrella companies put a working time opt-out in their standard contract. This is legal. Many contractors sign the full contract without reading every clause. The opt-out goes in. They never notice.
This does not mean your umbrella did anything wrong. The opt-out is a standard term in many UK employment contracts. You should just know about it.
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 for a copy. They must give you one when you ask.
Does the opt-out actually matter for contractors?
For most umbrella contractors, the opt-out is a background formality. Most assignments run standard hours. You will not average 48 hours a week. So the opt-out has no practical effect.
It matters when:
- You are on a demanding assignment with regular long hours
- You have multiple contracts at the same time that push your total above 48 hours
- Your umbrella is pressuring you to take on extra hours without written agreement
If you regularly work 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 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 is how:
- Write to your umbrella (email is fine)
- State clearly that you withdraw from the working time opt-out
- Give at least 7 days’ notice. Check your contract: it may allow the employer to extend this up to 3 months.
- Once 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
Do you want to opt out again after withdrawing? You need a new written agreement. You cannot agree to waive the limit by speaking. 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 they do not resolve it, contact the Fair Work Agency to report the breach
The Fair Work Agency took over working time enforcement from 7 April 2026. It can investigate employers who breach the regulations. It can take action against them.
For more on your day-one protections, read your rights as an umbrella contractor.
DASA holds dual accreditation from FCSA and Professional Passport. Both bodies require their members to follow Working Time Regulations in full. Check your take-home pay with our umbrella salary calculator before you sign with any umbrella.
Frequently Asked Questions
Does the 48-hour working week apply to umbrella contractors?
Yes. Umbrella contractors are workers under UK law. The 48-hour average limit applies in full. Your umbrella company is your employer and must follow the Working Time Regulations 1998.
What is a working time opt-out agreement?
A working time opt-out is a written agreement where a worker voluntarily agrees to work beyond the 48-hour weekly average. Signing is not compulsory. Workers can withdraw from the opt-out with at least 7 days’ written notice.
Do umbrella companies include a working time opt-out in their contracts?
Many do. Most umbrella companies include the opt-out as a standard clause in their employment contract. Contractors often sign the contract without noticing it. Check your contract for a “working time opt-out” or “48-hour” clause.
Can I withdraw from a working time opt-out?
Yes. Write to your umbrella company and state that you withdraw from the working time opt-out. Give at least 7 days’ notice. Your contract may allow the employer to extend this up to 3 months.
Who enforces working time rights for umbrella contractors?
The Fair Work Agency (FWA) launched on 7 April 2026. It is the enforcement body for working time breaches. It replaced the previous BEIS enforcement team. You can report breaches to the FWA if your umbrella fails to follow the regulations.
