Umbrella companies have become increasingly prominent in the labour supply chain, but there are signs of large scale non-compliance and tax avoidance. This is especially the case with workers’ entitlement to holiday pay, pensions, the employment allowance scheme and mini umbrella companies and issues with disguised remuneration. The author has lobbied for regulation of the sector, and the government has now announced the formation of a new watchdog to protect umbrella company workers and regulate the industry. There is, though, still some way to go before we see regulation in action.
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Umbrella companies have become increasingly prominent in the labour supply chain, but there are signs of large scale non-compliance and tax avoidance. This is especially the case with workers’ entitlement to holiday pay, pensions, the employment allowance scheme and mini umbrella companies and issues with disguised remuneration. The author has lobbied for regulation of the sector, and the government has now announced the formation of a new watchdog to protect umbrella company workers and regulate the industry. There is, though, still some way to go before we see regulation in action.
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