Beware of non-compliant umbrella companies

Beware of non-compliant umbrella companies

Oct 26, 2017

The FCSA (Freelancer and Contractor Services Association) has warned vigilance against non-compliant umbrella companies.

There are strict rules which umbrella companies must follow, particularly in relation to business expenses which umbrella company employees can claim.

The FCSA has provided the following advice for recruiters, but it is also sound advice for individuals who are looking for a good umbrella firm to work with.

  1. Choose a member of a recognised professional body, like the FCSA, which has compliance testing as a pre-requisite.
  2. Ensure they are operating within the law and provide:
  • National minimum wage payments that are in line with legislation
  • Expenses should be made in line with HMRC legislation and guidance. If expenses allowances are too good to sound true then this should raise alarm bells.
  • Holiday and statutory payments such as sick pay, maternity pay and paternity pay
  • An overarching contract of employment
  • Full employment and statutory rights
  • The provision of guaranteed hours
  • Access to a workplace pension

Umbrella Plus, our umbrella company, is an Associate member of the FCSA, allowing you to work with complete peace of mind. Find out about the benefits of Umbrella Plus, and how to join.

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