Professional Relationships of a Contractor

Rewarding Contractor Career

"There are three main contractor relationships that are vital to understand.", so says Stephanie Buck, Sales Director of JMK Group UK umbrella company, "It is important to handle these relationships properly for an on-going and rewarding career as a freelance contractor."

These are the basics of the relationships that a contractor should know & understand:

1. Recruitment Agency

Your recruitment agent is vital to you for a successful contracting career. The recruitment agent will be largely responsible for finding you a continual supply of contract work.

The recruitment agency has a relationship with the end-client to find suitably skilled contractors to complete various specific tasks, and agrees an hourly/daily rate with the client for each job.

Your recruitment agent will have a contractual relationship with your umbrella company in which you are the person named to fulfil the given contract role.

See what our Experts say about recruitment agency pressure on umbrella company choice.

2. The Client

As a contractor you do not have a direct contractual relationship with your client. Your client has a contractual relationship with your umbrella company in which you are the named person to fulfil the given contract role.

You are in the strange position of being an employee and client of your umbrella company.

3. The Umbrella Company

As a contractor you become an employee of your umbrella company. Your umbrella company will have a contractual relationship with your recruitment agency and your end-client, in which you are the named person to fulfil the given contract role.
Getting Paid

• Once you have done the contract work you need to be paid. How?
• Send your completed timesheet to your umbrella company
• Your umbrella company invoices your recruitment agency
• Your recruitment agency will invoice the end-client
• The end-client then pays your recruitment agency
• The recruitment agency pays your umbrella company
• Your umbrella company will pay you a net salary after tax.