Trades Contracts: Your Rights Explained
You have a job offer and the contract is on the table, or you are already working through our construction trades recruitment service and unsure whether your pay, holidays and pension are correct. For tradespeople and operatives, small wording differences in a contract can change your rights and your take-home pay. This guide covers the common contract types you will meet in construction, the statutory rights each normally carries, and the red flags to check before you accept work. If you are just starting out, our guides on How To Become A Site Carpenter and Which CSCS Card Do I Need? cover the routes onto site.
Common contract types used in construction
Permanent employment
Permanent contracts are straightforward for most trades candidates: you are employed by the company and paid through PAYE. Permanent roles suit multi-site supervisors, site managers, and skilled tradespeople looking for steady work, for example a joiner with NVQ Level 2 or a plant operator with CPCS. Your employer should supply a written statement of particulars within the first two months.
Fixed term
Fixed term contracts run for an agreed period, often for a single project or phase. They give many of the same basic rights as permanent employment, but watch for repeated renewals which can create longer-term employment rights.
Agency and umbrella arrangements
Many labour-only and skilled trades roles are filled through recruitment agencies. There are two main flavours:
- Agency worker (PAYE): the agency is your employer, you are paid through PAYE and entitled to statutory worker rights.
- Umbrella company: you become an employee of the umbrella which processes your pay. Umbrellas can ease administration for contractors, but check fees and that the umbrella is reputable.
Zero hours contract
Zero hours contracts mean there is no guaranteed minimum work. You accept shifts as offered. You are classed as a worker rather than self-employed, so you keep rights to holiday pay and the National Minimum or Living Wage, but you do not have the same notice or redundancy protections as a permanent employee.
Self-employed / subcontractor
As a self-employed tradesperson you run your own business: you invoice, manage your own tools, and bear your own tax and NI responsibilities. This model suits experienced operatives running multiple contracts, specialist tradespeople and subcontractors. Self-employment gives flexibility, but it often means you are not entitled to statutory sick pay or notice pay.
What statutory rights you can expect, by contract type
Employment law separates people into employees, workers and the self-employed. Rights follow from your status more than the contract label, so always clarify status in writing.
Holiday pay
- Employees and workers: statutory paid holiday entitlement applies, including accrual while working. Employers should show how holiday pay is calculated for irregular hours.
- Self-employed: no statutory paid holidays. Factor time off into your day rate or contract price.
Sick pay
- Employees: may qualify for Statutory Sick Pay if eligible, employers should explain company sick pay if offered.
- Workers: generally not entitled to SSP unless classified as an employee by law, check your status.
- Self-employed: no SSP, consider insurance for loss of earnings.
National Minimum Wage and National Living Wage
Pension auto-enrolment
- Eligible employees and workers: employers must automatically enrol qualifying staff into a workplace pension and make contributions.
- Self-employed: you must arrange your own retirement saving.
Notice and redundancy
- Employees on permanent or fixed-term: have statutory notice entitlements and may be eligible for redundancy pay depending on length of service.
- Workers and zero hours staff: have more limited notice rights.
- Self-employed: contract terms determine notice and termination.
Practical red flags to check before you accept work
- No written contract or vague terms: get the role, pay rate, hours, who is your employer, and how you will be paid in writing before you start.
- Pay through a third party but no payslips: you should receive payslips showing deductions if paid through PAYE.
- Unclear holiday calculation: for irregular hours you should be told how holiday pay is calculated and when you can take leave.
- Agency says you are self-employed but you work regular shifts under supervision: this can indicate misclassification and less protection.
- Umbrella fees not disclosed: if an umbrella is used, ask for a breakdown of fees and when you will be paid.
- Late payments or shifting payroll responsibility: ask who pays you and when, and get contact details for payroll queries.
- No checks on CSCS, PTS or relevant tickets: sites may require CSCS, NVQ, PTS for rail, CPCS for plant, SMSTS or SSSTS for supervisors, IPAF or PASMA where needed.
Employer checklist: writing clear, compliant contracts
- State the employment status: clarify if the person is an employee, worker or subcontractor and why.
- Provide written particulars: job title, pay rate, pay frequency, employer name, hours, holiday entitlement and place of work.
- Be transparent on deductions: show PAYE, National Insurance and any umbrella or agency fees on payslips.
- Set out pension arrangements: who is auto-enrolling, contribution rates and opt-out processes.
- Include required site qualifications: specify CSCS, NVQ, PTS, SMSTS, CPCS, IPAF or PASMA and who verifies them. Link to your sector pages where relevant, for example building and housing or rail recruitment. See our employers page for support in writing contracts.
- Review subcontractor agreements: ensure they reflect reality of control and mutuality of obligation to avoid misclassification risk.
Questions candidates should ask at interview or on offer
- Who is my employer on paper: the hirer, the agency or an umbrella company?
- How and when will I be paid: weekly or monthly, and will I receive itemised payslips?
- How is holiday pay calculated for irregular hours: get the precise formula in writing.
- What status am I being engaged under: employee, worker or self-employed, and why?
- Are there any fees or deductions from my pay: for example umbrella fees or training costs?
- Which site tickets and training do you require and who pays for them: CSCS, NVQ, CPCS, PTS, SMSTS or IPAF?
- Who do I contact about payroll queries or disputes: get a name, phone number or email.
Final practical notes for tradespeople
Keep records: save your contract, payslips, timesheets and any messages about changes to pay or status. If you believe you have been misclassified, raise it with the recruiter or employer in writing first, and if unresolved seek advice from ACAS or a trade union. For rail roles check PTS and site induction specifics, for plant roles check CPCS card validity and daily log books. For building and housing projects expect CSCS and NVQ requirements. Harbron can check contract wording and explain what the terms mean for you.
If you are looking for work, browse our current vacancies on our jobs page or register as a candidate. If you are hiring, visit our employers page to discuss compliant recruitment solutions and temporary, permanent or contract supply. Call us on 01626 333105 or email info@harbronrecruit.co.uk to speak to a sector specialist.
FAQs
Am I entitled to holiday pay if I am on a zero hours contract?
Yes, zero hours workers are typically classed as workers and have a statutory right to accrue paid holiday. Ask how it is calculated for irregular hours and get the calculation in writing.
Can an agency make me self-employed to save on costs?
Not legally if the way you work looks like employment. Employment status depends on control, mutuality of obligation and substitution options. If you suspect misclassification, ask for a clear explanation and keep records.
Who pays my pension if I work through an umbrella?
The umbrella acts as your employer and should handle auto-enrolment for eligible workers. Check contribution levels and ask for confirmation in writing.
What should I do if I do not receive payslips or my pay is late?
Raise the issue with payroll or your recruiter immediately, keep written records, and if it remains unresolved seek advice from ACAS or a specialist adviser.
