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Stop umbrella companies passing employer costs to contractors!

Submitted on Tuesday 8th April 2025

Rejected on Thursday 15th May 2025

Current status: Rejected

Rejection code: already-happening (see below for details)

Petition Action

Stop umbrella companies passing employer costs to contractors!

Petition Details

Change the law so umbrella companies can no longer pass employer costs—like National Insurance and pension contributions—onto contractors. These costs should be paid on top of the contractor’s agreed rate, not taken from it.

Additional Information

Contractors using umbrella companies are being misled into believing they are employees, but receive none of the benefits—no real pension contributions, no employer NI, no protections—yet still fund all the employer’s costs from their own rate. This practice is unfair, opaque, and exploitative. The law must change to protect workers.


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This petition was rejected

The Government e-Petitions Team gave the following reason:

The Government issued new guidance about working through an umbrella company which sets out that the umbrella company will be responsible for paying costs such as National Insurance Contributions and pension contributions.

www.gov.uk/guidance/working-through-an-umbrella-company#:~:text=The%20government%20recently%20announced%20in,any%20necessary%20changes%20are%20reflected

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