Umbrella companies look set to face UK-wide regulation as the Government responds to recommendations in the Taylor Review of modern working practises.
Umbrellas – which can provide payroll services to contractors employed through recruitment agencies– are now set to have in-stone governance from the Employment Agency Standards Inspectorate (EASI) and will also have to deal with new guidelines regards pay.
The FCSA added that the change is an overwhelmingly positive one. “[It’s] a really positive development assuming that it will be fit for purpose,” they said in a statement. The FCSA will also advise the Government on the regulation – especially around some of the more complex cases.
The changes will allow the Inspectorate to investigate complaints involving an umbrella – including where workers, who had gained work via recruitment agencies, had not received adequate pay.