This document provides guidance on agreeing a contract with a contractor that will work through an umbrella company. It outlines 11 key steps: 1. Confirm which umbrella company the contractor wishes to use. 2. Verify the contractor's right to work in the UK. 3. Determine if the contractor wants to opt out of Conduct Regulations and obtain the necessary signed opt out documentation. 4. Request comparator pay information from clients for assignments over 12 weeks long. 5. Agree the assignment in principle with the client and contractor. 6. Get written assignment confirmation from the client including start/end dates and charge rate. 7. Confirm assignment details with the contractor including umbrella company name.

1. © 2014 APSCo
Agreeing a contract with an umbrella company contractor
4. If the assignment is to last
more than 12 weeks you
should request comparator
information from the client,
to fulfil your obligations
under the AWR.
Check that umbrella company is
one that you are happy to deal
with (according to internal limits),
and record company name.
If contractor asks for help in
choosing umbrella company,
you may suggest your PSL/
APSCo Affiliate.
1. Do they know which
umbrella company they
wish to use?
Get signed opt out from
contractor as soon as possible,
and definitely by interview
stage. Email client to confirm
contractor has opted out.
3. Does contractor want to
opt out of Conduct Regs?
No
Check with your manager, as
other paperwork is required
Yes
You need an opt out signed by the
umbrella company. The contractor &
umbrella do not need to sign the same
opt out form. Umbrella companies often
provide a single opt out, which covers all
contractors working via them. All opt
outs must be dated before the start
date of the assignment.
Yes
No
Always be very clear that you are not
recommending an umbrella company.
Don’t accept money from an umbrella
company for referring contractors.
2. Confirm contractor’s
right to work in the UK.
Dependent upon internal
requirements. Should request at
least copy document.
The client may provide details of a
comparable employee’s pay, or
confirmation of what they would pay
someone directly in the role. If you’re
not sure of the length of the
assignment, this information can be
requested at any point before the end
of the 12th week on assignment.
5. Assignment agreed by client
and contractor in principle.

2. © 2014 APSCo
6. Get written confirmation
of assignment from client,
and confirm terms of
business that apply.
This can be on email, and should
definitely include start and end dates or
duration and charge rate.
7. Confirm assignment
details, umbrella company
name, address & company
number with contractor.
8. Send umbrella company the
umbrella company contractor
contract for the assignment.
Do not send out contract until
written confirmation received
from client.
9. Request umbrella
company documentation.
Dependent upon internal requirements.
Will include: confirmation of employment
relationship; incorporation certificate; VAT
certificate if appropriate; limited company
bank account details.
10. Preferably before start
date, check required
documentation received
from umbrella company
and contractor.
• Contract signed by umbrella company
• Opt out for contractor & umbrella
• Confirmation of umbrella/contractor
employment relationship
• Confirmation that contractor’s right to
work has been checked face to face
• Umbrella company documents.
If not already done so, check that
umbrella company is one which
you are happy to deal with. It
should be a UK registered
umbrella, if not contact your
manager.
Agreeing a contract with an umbrella company contractor
11. Before the 13th week of the
assignment ensure you have
received AWR comparator
information from the client.
Once received forward confirmation
of changes/or no change from 13th
week to umbrella company.