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The umbrella company consultation: tackling non-compliance

Rebecca Seeley Harris (Re Legal Consulting) has been campaigning for the regulation of the umbrella company industry and the protection of the worker, under the #FairUmbrella campaign since 2021. Here, she reviews the options for policy change set out in the recent umbrella company consultation.

Why is the consultation needed?

There are 1.7m temporary workers in the UK many of whom use employment intermediaries to source and secure job roles. The umbrella company acts as the legal employer for the worker but the worker does not provide services to or for the umbrella company itself. Because of various schemes and abuses that have been identified the government published a call for evidence in 2021.

The call for evidence had more than 400 responses and the responses from the workers outlined the disadvantages of being engaged via an umbrella company model – some reporting a general lack of understanding and some...

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