The regulations were introduced to give low-skilled agency workers protection from being exploited by work seeker companies (employment agencies). Contractors were however also being included within this legislation, although an option to ‘opt-out’ of the legislation was agreed, which caused confusion within the industry and amongst individuals so the government proposed to update and further clarify the regulations.
A consultation period was set-up so that anyone affected could, if they wished, submit their comments and these would be taken into consideration before making any changes.
One of the issues to be discussed was whether or not workers employed through umbrella companies were at risk from exploitation. The BIS has now published their response document following the end of the 3 month consultation period and the analysis of the comments of almost 350 respondents. The opinion formed after this extensive research is that, for the time-being, the regulations will remain as they are and the opt-out in place. The reason given is that the consultation has not provided convincing evidence of vulnerable workers suffering detriment whilst working through an umbrella company. However, this particular issue is not necessarily laid to rest as the BERR are continuing to ‘gather evidence’.
For more details visit http://www.berr.gov.uk/consultations/page50428.html.
If you would like to discuss the regulations you can contact a member of our team on 01206 713 680 or email us at info@contractorumbrella.com. Alternatively visit our website www.contratorumbrella.com.
