“Recruiters want a robust and fair supply chain, where workers’ rights and pay are protected and all parties’ responsibilities are clear. There are many compliant umbrella companies out there which provide valuable services – but clearly there are too many which act unethically and exploit loopholes in the law. These bad-faith companies have been allowed to thrive alongside legitimate businesses for too long. We’re glad that the government is moving forward with the creation of a single labour market enforcement body which will have the power to regulate umbrella companies. We also advise our members to always conduct rigorous due diligence on their supply chains, and have published guidance on what to look out for when working with an umbrella company so that recruiters can ensure they operate with fairness and transparency.”
REC response to TUC call for umbrella companies to be banned
In response, Shazia Ejaz, Director of Campaigns at the Recruitment & Employment Confederation (REC), said:
