Contractors who work under an umbrella company enjoy a scope of advantages. These contractors can set their own rate of pay and have the option to pick any contracts at any time, while additionally having the security of an umbrella company that offers multiple employees benefits.
However, working under an umbrella company qualifies contractors for similar legal employee benefits, like statutory sick pay?
In this article, Reliasys clarifies precisely what contractor’s privileges are with regards to sick pay and other rights, to outfit each self-employed with the data they need to confront all conditions.
Statutory Sick Pay (SSP) in Umbrella Companies
The best thing for contractors is that they are classed as ‘employees’ of an umbrella company, thus they are entitled to sick pay. Contractors should set aside the effort to know ahead of becoming sick how sick pay functions and the other legal benefits they are qualified for.
Umbrella workers have legal rights and insurance offered to them, which means each employee of an umbrella company is qualified for sick pay. This presently sits in accordance with Statutory Sick Pay (SSP) at £96.35 each week - for as long as 28 weeks, and it's paid to the umbrella company employees by the umbrella company for the time of nonappearance. Sick pay in light of Covid is likewise viewed as the same.
In order to qualify for the sick pay, a contractor should notify their umbrella company within 7 days of them getting sick. In the event that this seven-day cutoff time can't be met, the umbrella contractor could lose some amount of their SSP. Be that as it may, in the current environment with the Covid-19 actually causing a huge number of new cases a day, assuming a contractor is sick for more than seven days, they will require:
- If the contractor has got the virus, then they would have to give an “Isolation Note”.
- A letter from the NHS when a contractor has been advised to stay quarantined because they have come into contact with somebody with Coronavirus.
- A letter that confirms a contractor needed to stay in quarantine before admitting to the hospital.
- A normal sick note if they have been sick for some other reason.
Covid sick pay
Although, the principles of SSP imply that the initial three days of sickness don't meet all requirements for payment. Nonetheless, if your nonappearance is identified with Coronavirus, Statutory sick pay is payable from the first day onwards.
But, payment will possibly cover the particular days when a worker would have been working away, so assuming this incorporates the end of the week, they will be covered, and these will be classed as 'qualifying days.'
Times when you can’t get SSP
A contractor has the right to take SSP only when they have not claimed the maximum amount of SSP within 28 weeks. And a person who is already getting maternity pay will not be eligible for claiming SSP.
To be qualified for sick pay from an umbrella company, a contractor should procure a normal of £120 each week - this sum is before tax and National Insurance.
Closing note:
We are a fully compliant Umbrella company that offers Full employment rights/Statutory Benefits, Perks, Insurance and more to all the contractors working with us.
Contact us today and discuss your necessities further!
020 3500 2615
Also See: Contractors Vs Permanent Employees - The Advantages and Disadvantages
