What are the Working Time Regulations?

When you register and become an employee of an umbrella company, you are entitled to the same rights as any other UK-based employee. Please continue reading to find out what the Working Time Regulations (WTR) are, how they affect contractors and what it means to opt-out of the 48-hour working week.

Background to the Working Time Regulations (WTR)

Before October 1998, employers dictated employees’ working hours and paid/unpaid leave allocation. In 1998, the Working Time Regulations (WTR) were introduced to provide a statutory framework for all contractual working relationships. The regulations apply to all full-time and part-time workers, including most agency workers and contractors.

The WTR put a limit on the number of hours a worker can work each week and ensured workers had sufficient time off between shifts. The legislation also gave workers the right to paid holiday leave each year which corresponded with the number of days in the week that the individual typically works.

The basic parameters of the WTR state that employees are:

• Entitled to 5.6 weeks of paid time off per year
• Cannot be mandated to work more than 48 hours a week unless the worker opts-out
• Given a minimum of 1 day off per week
• Entitled to a 20-minute rest break (for working days longer than 6 hours)
• Allowed one consecutive hour’s rest per 24-hour period
• Not allowed to work more than 8 hours – for night shifts – in any 24 hours
• Restricted to 8 hours per day and 40 hours per week if the worker is aged between 16-18
• Meant to have 11 hours of rest between working days (e.g. if a worker finishes work at 8pm, they should not work again until 7am the next day)

Are there any exceptions to the Working Time Regulations?

You may be required to work more than 48 hours per week on average if you are working in one of the following:

• In the armed forces, emergency services or police
• In security and surveillance
• Where 24-hour staffing is required
• As a sea-fisherman, seafarer or worker on vessels on inland waterways
• As a domestic servant in a private household
• Where working time is not measured, and you’re in control, e.g. you’re a managing executive with control over your decisions

What is the 48-hour working week restriction?

The 48-hour working week restriction means it is illegal for you to work more than 48 hours weekly. You can agree to exceed this limit if you wish to, but you cannot be mandated to work more than 48 hours per week. Average working hours are calculated over a ‘reference period’, usually 17 weeks. This means you can work more than 48 hours one week, as long as the average over 17 weeks is less than 48 hours a week.

It is important to note that some jobs have different reference periods. For example, the offshore oil and gas sector has a 52-week reference period, and a trainee doctor has a 26-week reference period. As a contractor working through an umbrella company, you will likely be working on different assignments for different end clients. Despite working for other clients, the restrictions still apply as the total of your combined working hours must not be more than 48 hours weekly.

If it is likely that your combined hours will equate to more than 48 hours, then you can do one of the following;

• Sign the opt-out agreement
• Reduce your hours to fit within 48 hours

How to opt-out of the 48-hour working week

The UK allows workers to opt-out of the 48-hour working week limit. However, it is essential to note that this does not mean you opt out of the whole regulation – just the 48-hour restrictions. If you want to opt-out, you can sign a written opt-out agreement that your employer will provide.

You do not have to opt-out indefinitely and can cancel an opt-out agreement anytime. The notice period you must give your employer will be written in your contract. However, it will never be less than seven days or more than three months.

Are you interested in registering with a compliant, FCSA-accredited umbrella company?

If you are interested in registering with Churchill Knight Umbrella or would like to request a free take home pay illustration, please give our expert team a call on 01707 871621. Alternatively, you can request a call for a later date, and one of our Sales Consultants will be in touch.

We look forward to speaking with you!