Professional umbrella provider giant group is to pay its employee contractors between assignments in a move that will ensure they can continue to claim travel & subsistence (T&S) expenses. 

Matthew Brown, managing director of giant group, tells Recruiter that the company’s contractor employees will receive additional pay between assignments “as long as they say they are available for work and have no work”. However, he adds, that while any increase in pay for employees “is fantastic… it’s all about tax compliance”.

Under the arrangement, giant will pay its contractor employees seven hours at basic pay a week plus holiday pay.

The payment, which the company calls Gap Pay, comes under Regulation 5 of the Agency Workers Regulations (AWR), which covers basic working and employment conditions, one of which is pay. 

The company says this should not be confused with pay between assignments under Regulation 10 of the AWR, the so-called Swedish Derogation, under which temporary agency workers give up their right to equal pay with their permanent colleagues.  

Brown explains that the introduction of ‘Gap Pay’ ensures that employment with giant is continuous and permanent, and that as a result its contractor employees are eligible to be reimbursed for T&S expenses. 

“If you don’t have that the worker is deemed to be travelling to permanent worksites not temporary worksites and therefore cannot claim T&S.”

Giant has also committed to offer its employees at least 504 hours of work a year, with any shortfall being automatically paid by the company at basic rate.