An umbrella company is a company that acts as an employer to contractors who usually work under a fixed term contract assignment.
We process the timesheets received from the employee/contractor for the work completed for the client. Through our PEO solutions in Africa, we provide payroll to the employee/ contractor and then we issue an invoice to the client for payment.
The client is effectively the company for whom the contractor works. The client often elect to use contractors as it affords them the ability to temporarily augment their staff or capability without the burden of the legal requirements associated with permanent employees. Using contractors also facilitates special skills and typically provides the advantage of a broader skill set as the contractor has typically worked many companies and organizations during prior contracts.