Umbrella company terms of employment or employment contract.

[speaktofrodo]

Hi,

I'm in the process of signing up with an umbrella company for my next contract. This is my first inside IR35 contract. While signing up with the umbrella company, I'm reading the terms of the employment contract and have come up the following.

"The Employee is obliged to complete any Assignment which is offered to and accepted by the Employee. If the Employee wishes to terminate an Assignment, the Employee must give the Employer at least one month's notice. Termination of an Assignment is not termination of the Employee's employment by the Employer or by the Employee and does not affect the continuity of the Employee's employment."

Doesnt this mean that I have to give the umbrella company one month's notice if I want to change my job/client?

[Paralytic]

Assuming "Employer" is the Umbrella, then yes. In reality, not much different to an Outside IR35 contract and having a one month notice period with the agency/client.

[ladymuck]

Yes, one month notice to quit or change. Remember, you won't have a contract with the agency. The contract you have is with the brolly and the brolly is the entity with the agency contract.

But don't go thinking that means you can't change jobs.

You can have multiple contracts via a single brolly (check the terms to make sure). So you could quit Client A and tell the brolly that will end in a month but have no billing for them beyond, say, the end of this week. In the meantime, you sign up with Client B and start submitting time sheets for them instead.

[lucyclarityumbrella]

It does indeed - but make sure there is no contract addendum with a notice period which matches the business to business contract from the agency and the umbrella, this should in theory override the main terms.