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.

Suggested Reads

Long Service Awards For Nikki and Judy

Jun 12, 2024 | News

It’s the people of Crest Plus who make all the difference to the quality of service we provide. That’s why we were particularly pleased earlier this month to recognise Nikki…

Reducing Risk When Using CIS – Beware of Assumptions on Hourly Rates

Jun 5, 2024 | Crest Plus News

We recently launched a new FREE CIS Healthcheck service to help recruitment businesses use the scheme safely. The healthcheck aims to identify risks you may be facing so you can…

CIS – Common Pitfalls Recruiters Need To Know

May 1, 2024 | Crest Plus News

Our new, FREE CIS Healthcheck service is designed to help recruitment businesses to use the scheme safely. The healthcheck aims to identify risks you may be facing so you can…