Umbrella services vary from country to country. Generally umbrella services (depending on which type) usually means that the contractor rents space in an existing scheme, arrangement or company rather than set up their own from scratch. It has the advantage of enabling the contractor to avoid the expenses and delay of set up and the expense and complication of close down on contract termination.
Often the procedure would be for the existing umbrella entity to enter into a contract with the contractors client or agency. It can be, but not necessarily, that the contractor becomes an employee of the umbrella. An umbrella service usually manages the whole process from contract excecution, to contract invoicing through to payment of the contractor.
Often insurance or adherence to certain compliance issues is a requirement of leading end users. A pre-approved umbrella will already have all compliance, insurance and other matters in place so as the contractor does not have to reinvent the wheel. Chesterfield are dedicated to providing seamless, pre-approved, straightforward, ready to use umbrellas.