Glossary

Terms

AWR (Agency Workers Regulations)

Regulations that give agency workers certain rights (e.g. equal treatment on pay and conditions) after a qualifying period with the same hirer.

JSL (Joint and Several Liability)

Where more than one party in a supply chain can be held liable for certain obligations (e.g. unpaid tax). Relevant to agencies and umbrella companies.

PAYE (Pay As You Earn)

The UK system under which employers deduct income tax and National Insurance from employees’ pay before paying them.

Umbrella company

An employer that employs contractors who work on assignments arranged by agencies or end clients. The umbrella runs payroll (PAYE) and pays the worker after deductions and its margin.