Umbrella Worker Redundancy Checklist: How to Protect Your Rights and Claim What You’re Owed
If your umbrella company tells you there’s “no more work available,” it’s easy to assume that’s the end of the line. But under employment law, if you’re employed by that umbrella, the situation might qualify as redundancy — and that means you could be entitled to umbrella worker redundancy rights, including statutory redundancy pay.
The catch? Most umbrella workers don’t know where to start. Here’s a step-by-step guide to help you check your eligibility and act quickly if your assignment ends.
Step 1. Confirm your employment status
The first thing to check is who your actual employer is.
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Look at your employment contract and payslips.
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If they list your umbrella company (not the agency or end client), then the umbrella is your employer.
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That means your redundancy claim — if any — lies with the umbrella company.
If you’re working through multiple umbrellas or switching providers often, keep copies of all contracts so you can track your continuity of service.
Step 2. Check your length of continuous employment
To qualify for statutory redundancy pay, you need at least two years’ continuous employment with the same employer.
Continuous service can be broken if:
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You switch umbrella companies.
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There’s a long gap between assignments.
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Your umbrella treats each assignment as a new employment period.
Tip: Some compliant umbrellas maintain continuous employment between assignments — even when you’re not working. Ask your provider to confirm this in writing before accepting new contracts.
Step 3. Understand what counts as redundancy
Redundancy happens when your employer’s need for workers ceases or reduces.
So if the client has ended your contract and the umbrella has no other suitable work to offer, that could meet the redundancy test.
However, if your umbrella claims the assignment simply “ended,” they might argue this is not redundancy — especially if your contract says employment only lasts for the duration of the assignment.
Reality check: Most umbrellas avoid calling it redundancy because it costs them money. But that doesn’t mean you don’t have valid umbrella worker redundancy rights.
Step 4. Ask for a written explanation
Write to your umbrella company and ask:
“Can you confirm in writing whether my employment is ending due to redundancy, and if not, please explain the reason?”
This creates a paper trail and may push the umbrella to clarify (or rethink) its position. If they refuse, keep a record — it will help if you later take legal advice or make a claim.
Step 5. Gather your evidence
Before making a formal claim, pull together:
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Your employment contract(s)
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Payslips showing continuous employment
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Any emails or letters about your assignment ending
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P45 or termination notice from the umbrella
Keep everything — you may need to prove your length of service and employment status later.
Step 6. Get advice from the right sources
You don’t have to face this alone. Free, confidential support is available from:
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ACAS (Advisory, Conciliation and Arbitration Service) – 0300 123 1100
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Citizens Advice – advice on redundancy and unfair dismissal
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Specialist employment solicitors – especially those familiar with umbrella employment
If you plan to go to a tribunal, you must first notify ACAS for early conciliation within three months minus one day of your employment ending.
Step 7. Consider raising a formal redundancy claim
If you’ve got more than two years of continuous employment, and your job ended because there’s no work, you can claim statutory redundancy pay from your umbrella company.
If the company refuses or you believe you were unfairly dismissed, you can:
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Raise a grievance directly with the umbrella.
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Enter ACAS conciliation.
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Submit an Employment Tribunal claim if the issue remains unresolved.
Tribunals can award redundancy pay, notice pay, and compensation for unfair dismissal — but you’ll need solid evidence of your employment and service.
Step 8. Learn for next time
Even if you lose out this time, you can protect yourself in future:
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Choose FCSA-accredited umbrellas or those with proven compliance standards.
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Ask before joining: “Do you maintain continuous employment between assignments?”
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Keep personal records of start and end dates for every contract.
The more consistent your employment record, the stronger your rights become.
Final Word
Umbrella employment shouldn’t mean weaker protection. By understanding your umbrella worker redundancy rights, keeping solid records, and acting early, you can make sure you’re not short-changed when your role ends.
By understanding your status, keeping documentation, and acting early, you can make sure you’re not short-changed if your role ends.
If you think your umbrella company has mishandled your redundancy situation, get advice immediately — you may be entitled to more than you’re being told.
