Ban the use of umbrella companies in the construction industry

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Ban the use of umbrella companies in the construction industry

Petition Details

Umbrella companies must be banned as the care for workers is being further broken down amongst parties within the supply chain. This could help to ensure that employers continue to assume full responsibility for workers. This could also help to ensure that pay rates are inclusive of all deductions.

Additional Information

IR35 has pushed contractors/agencies towards the reliance on Umbrella companies to take on employer liability, and this can lead to the avoidance of IR35 scrutiny. As a result, this incurs additional deductions on workers rates such as Employers NI, Apprenticeship Levy (which isn't practical for the circumstances) as well as Payroll margin (which Umbrella companies claim to make a profit). This can reduce workers’ pay drastically as well as increase the volatility of the industry.

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