key information documents.

The key information documents you’ll find here are intended to improve the transparency of information for agency workers, particularly around pay.  They set out some of the key information regarding your engagement whilst you work on assignments through Randstad.

The model of engagement you use with us will have an impact on how much you receive as earnings from your assignment and what employment rights, such as holiday or sick pay, you may be entitled to.  When working through Randstad CPE there are up to four different models you can engage with us under.  Not all of these models will be available for all of our assignments, as our clients may not permit them all - if that’s the case your consultant will let you know.

The four models of engagement are:

1. ‘pay as you earn’ with Randstad, or
2. PAYE via an approved umbrella company; or
3. (if the role is in scope) as a CIS subcontractor via an approved umbrella company; or
4. via your own ‘personal service company’.

Brief information on all four models is provided below.  You should also take your own independent advice on which model is most suitable for your individual circumstances.

‘pay as you earn’ (PAYE) with Randstad.

PAYE with Randstad offers the fastest and most simple registration process and will open up the widest number of opportunities we can offer.  You’ll sign a contract for services with us, and we will pay you directly when you work on assignment whilst accounting for any statutory deductions (such as income tax and national insurance) on a PAYE basis.  When you’re eligible, you’ll be auto-enrolled into a pension scheme into which both you and Randstad will contribute.  As we’re an employment business, you would be under no obligation to accept any assignments we offer and you’re free to seek assignments with other agencies too.

Through this model you’ll be entitled to minimum wage protections, holiday pay, statutory sick & maternity/paternity pay as well as equal pay with comparable employees following 12 continuous weeks’ on an assignment.  As an additional benefit of working with Randstad, you will be offered access to our exclusive benefits app, through which you can take advantage of a huge range of discounts and savings available at much loved high street stores, supermarkets, restaurants, cinemas, DIY stores and coffee shops, plus access to a confidential 24/7 telephone counselling service (Employee Assistance Programme (EAP)).

PAYE via an approved umbrella company.

Umbrella companies offer a PAYE model similar to PAYE with Randstad except that your engagement will be with the umbrella company and they will be responsible for paying you and for any other rights you may have.  Normally you will be engaged as an employee of the umbrella company meaning you’ll be entitled to minimum wage protections, holiday pay, statutory sick & maternity/paternity pay as well as equal pay with comparable employees following 12 continuous weeks’ on an assignment.  You may also be entitled to certain continuity of employment benefits.

To work under this engagement model you will need to select one of the umbrella companies on the list shown below and register yourself with them before you register with us. Please note that the inclusion of any umbrella company on this list does not imply any warranty from Randstad in relation to that company, and you should carry out your own due diligence before signing up to any of them.

CIS subcontractor via an approved umbrella company.

If your role is defined within the scope of the Construction Industry Scheme (CIS) you can be engaged on a self-employed model by an umbrella company.  To understand more information about CIS you can refer to this page on gov.uk.

CIS workers are effectively self-employed individuals and so have limited entitlement to holiday and/or sick pay, minimum wage protections or to comparable pay when on assignment (except as you agree with your umbrella company).  As a result of being self-employed, tax is not accounted for on a PAYE basis.  The amount of tax deducted from your pay will be instead determined by your registration status under CIS with HMRC.

Personal Service Company (PSC).

A PSC is a limited company of which you hold an interest (typically shares and/or directorship).  You may also be an employee of the PSC.  Working through a PSC will enable the PSC to charge Randstad for the services you provide on assignment (on a B2B basis) and the PSC will treat that as its business income.

Operating a PSC is a lot like operating any business and there are legal requirements on the company’s formation, payment of business taxes and filings such as company accounts and annual returns.  The PSC will be responsible for the work output of its workers and so needs to be insured for any losses those workers may cause third parties.  Randstad CPE can arrange such insurance coverage if your PSC does not have its own cover.

Through a PSC you will typically receive less employment rights than those a PAYE paid individual would - for example, you won’t typically be entitled to holiday and/or sick pay, minimum wage protections or to comparable pay when on assignment.

All workers through a PSC are subject to a client-led IR35 test to determine if they are disguised employees.  The result of this test may mean we have to make income tax and national insurance deductions from the payment to the PSC on your behalf.

Before you register with us, you’ll need to ensure that your PSC company is already up and running.  There are providers who can help you (at a charge) with setting this up.