Last week, the government published its open consultation on the umbrella sector looking at regulation and non-compliance within the market.
Commenting on the ‘Tackling non-compliance in the umbrella company market’ publication, Neil Carberry, REC Chief Executive, said, “Regulation of umbrella companies is long overdue. Today’s announcement represents progress that is crucial to a sustainable temporary work market.
“Unlike recruitment firms, umbrellas currently operate without a specific regulatory framework, leaving workers and employment businesses at risk of non-compliance on worker rights and tax.
“While there are voluntary standards and audits in place for these firms, a strong legislative base is necessary. This consultation is a step towards that.”