Umbrella Contractor Rights: What You're Entitled To
You work through an umbrella company. That makes the umbrella your legal employer. Employment law applies to you the same way it applies to any other employee.
This article covers what you're entitled to. It also covers when those rights kick in, and who enforces them now.
What rights do you have as an umbrella contractor?
You have full statutory employment rights from day one. That includes the National Living Wage, paid holiday, sick pay, pension auto-enrolment, and protection from discrimination. You're not self-employed. You're an employee of the umbrella company, and the law treats you that way.
The umbrella is your employer of record. It runs your payroll and deducts tax and National Insurance. It also handles statutory payments like sick pay and maternity pay.
Your rate from the agency is called the assignment rate. The umbrella takes its margin from that. What's left is your gross pay before deductions. Use the umbrella pay calculator to see what your take-home should look like.
You can check a compliant umbrella's obligations on the DASA compliance page.
What rights do you have from day one?
From day one, you're entitled to the National Living Wage (£12.71/hour from April 2026). You also get a written statement of employment particulars, pension auto-enrolment, Statutory Sick Pay, and protection from unlawful deductions and discrimination.
You get paid holiday from day one too. That's 5.6 weeks per year, including bank holidays. Your umbrella must accrue and pay this correctly.
The Employment Rights Act 2025 strengthened day-one rights. Unfair dismissal protection is being phased in from day one. This replaces the old two-year qualifying period. Dates roll out across 2026 and 2027.
What changes after 12 weeks?
After 12 continuous weeks at the same hirer, you get equal treatment rights under the Agency Workers Regulations (AWR). That means the same basic pay, working hours, rest breaks, and annual leave as a comparable permanent employee.
This is the most important milestone in the AWR framework. "Continuous" means working at the same hirer through the same agency chain. Short breaks don't always reset the clock.
Day-one AWR rights apply from the start too. Those cover on-site facilities: canteen, parking, and job vacancy notices.
Read the full breakdown of agency worker rights under AWR.
What are your holiday pay rights?
You're entitled to 5.6 weeks of paid holiday per year. Your umbrella must calculate this correctly and show it clearly on your payslip. Holiday pay is either accrued and paid when you take leave, or rolled up and paid in each wage payment.
Rolled-up holiday pay is legal for irregular-hours workers following the 2024 regulations. But the holiday element must show separately on your payslip. If it's buried in your rate with no breakdown, that's a problem.
The Employment Rights Act 2025 adds new record-keeping duties for holiday pay. Umbrellas must keep accurate records of entitlement and payments. Implementation runs through 2026 and 2027.
Get the full picture on umbrella company holiday pay.
Who enforces your rights now?
The Fair Work Agency (FWA) launched on 7 April 2026. It's the single enforcement body for umbrella contractor rights. It replaced HMRC's National Minimum Wage team and the Employment Agency Standards Inspectorate.
Before April 2026, enforcement was split across multiple agencies. That made complaints slow and confusing. The FWA puts it all in one place.
It handles NMW complaints, holiday pay enforcement, and employment agency standards. You can report an umbrella that underpays or breaches your rights directly to the FWA.
Full holiday pay enforcement powers are expected from 2027. The FWA is operational and taking complaints now.
Read the full guide to what the Fair Work Agency means for contractors.
What does the Employment Rights Act 2025 change for umbrella contractors?
The Employment Rights Act 2025 brings three key changes for umbrella contractors. Day-one unfair dismissal protection (phased in). The right to request predictable hours. And new record-keeping duties on holiday pay. These roll out in phases across 2026 and 2027.
Day-one unfair dismissal protection removes the two-year qualifying period. Once in force, an umbrella can't dismiss you without a fair reason from day one.
Zero-hours protections give workers on variable hours the right to request a predictable work pattern. You submit a formal request. The umbrella must consider and respond to it.
Holiday pay record-keeping puts a legal duty on umbrellas to maintain accurate records of leave entitlement and payments. Underpaid holiday has been a systemic problem in the sector. ERA 2025 makes it harder to hide.
These changes apply to you through your umbrella. A compliant umbrella will implement them on time. If yours doesn't, contact the FWA.
What to do if your rights are being ignored
If your umbrella is underpaying you or breaching your employment rights, you have options. Start with the umbrella's complaints process. If that fails, escalate to the Fair Work Agency or an employment tribunal.
Keep records. Save every payslip. Note discrepancies between what you were promised and what you were paid. An unexplained drop in your rate is a potential unlawful deduction.
If your umbrella holds a compliance accreditation, you can complain to that body too. DASA holds dual accreditation from both the FCSA and Professional Passport. That means two independent bodies audit DASA's processes. It's the strongest compliance signal available.
Check the DASA compliance page for details on what those accreditations cover.
FAQ
What rights do umbrella contractors have from day one?
From day one you're entitled to the National Living Wage (£12.71/hour), paid holiday, Statutory Sick Pay, pension auto-enrolment, and protection from unlawful deductions.
When do AWR equal treatment rights kick in for umbrella workers?
After 12 continuous weeks at the same hirer, you get equal treatment on pay, hours, rest, and leave under the Agency Workers Regulations.
Who enforces umbrella contractor rights now?
The Fair Work Agency (FWA), which launched on 7 April 2026, replacing HMRC's NMW enforcement team and the Employment Agency Standards Inspectorate.
What does the Employment Rights Act 2025 mean for umbrella contractors?
ERA 2025 brings day-one unfair dismissal protection (phased in), the right to request predictable hours, and new holiday pay record-keeping duties for umbrella companies.
What should I do if my umbrella isn't paying me correctly?
Keep all payslips and records. Raise a formal complaint with your umbrella first. If unresolved, escalate to the Fair Work Agency or an employment tribunal.
