Yes and no.
An umbrella company is a term mostly used by recruiters and freelancers in the United Kingdom. An umbrella company serves as an ‘employer’ to contractors by providing the intermediary services between a recruitment agency or end client and the contractor who will be conducting the work. The umbrella company provides payrolling and invoicing services to freelancers.
What makes All About Expats different?
For highly skilled migrants All About Expats doesn’t offer umbrella services. Although All About Expats offers similar services, it is technically not an umbrella company. Umbrella services are companies that in almost all cases act as an intermediary that mainly regulates the invoicing and compensation of billable hours. In the Netherlands this service is called Freelance Payroll. By default, the wage payment obligation is excluded here, which means that if no hours are invoiced, no salary payment will take place.
All About Expats is of the opinion that the regulations concerning highly skilled migrants and the services offered by traditional Umbrella Companies do not go together. Excluding the obligation to continue paying wages jeopardizes a current residence permit and will stand in the way of the application for a new residence permit. After all, there is a wage standard that must at least be achieved during the term of the employment contract.
All About Expats only works on the basis of fixed term agreements where wages are guaranteed during an assignment. This means that during the hiring assignment in the event of illness, public holidays and regular holidays, at least the standard wage will be paid on. With an umbrella company there is a risk that these hours will not be continued or paid at a lower value. This can have negative consequences for the right of residence of a highly skilled migrant and for the 30% ruling.
Learn more about umbrella services and the services we offer.