Contracting offers plenty of benefits but is also well known for providing less job security than permanent employment. This is why many self-employed workers look to umbrella companies as a way to provide a greater degree of job security.
Do umbrella companies provide more job security?
The recent news that the UK’s second largest construction company has gone into liquidation has left many contractors questioning the safety of their jobs and whether they will still be paid. Amidst these fears, many are beginning to look to different avenues in the hope of reducing risk.
Working under an umbrella company means that the contractor will pay the umbrella, which in turn, pays you. This can add an extra layer of security. This means that you will always be paid, no matter what happens to the client.
Should I join an umbrella company?
As an umbrella employee, you will reduce the likelihood of risk when it comes to your job security. You will always be paid the National Living Wage by your employer, regardless of circumstances. Since umbrella companies operate in a similar manner to PAYE employers, this can help to mitigate risk and provide reassurance to contractors.
In addition, compliant companies operate under various financial codes of conduct and must adhere to a strict set of rules. At Parasol, we’re a member of the FCSA and APSCO which means that we will always operate legally and ethically.
You can also find more about the benefits of working with Parasol here.
How can Parasol help?
Whatever your current situation - whether you’re thinking of making the change to contracting or you’re currently working in the construction industry under a client - Parasol could be the solution for you. Take a look at our Construction Industry Scheme.