One of Matthew Taylor's accepted recommendations from the Good Work Plan is the proposal to extend the remit of The Employment Agency Standards (EAS) Inspectorate to include umbrella companies.
This suggestion was accepted by the government and in order to further support vulnerable workers, the department for Business, Energy & Industrial Strategy (BEIS) is currently consulting on the creation of a single regulatory body for the enforcement of employment rights.
It has been suggested that the remit of this new body will include the following:
- National Minimum Wage (NMW) and National Living Wage (NLW)
- Domestic regulations relating to employment agencies
- Umbrella companies
- Licenses to supply temporary labour in high risk sectors in agriculture and the fresh food supply chain
- Labour exploitation and modern slavery related to worker exploitation
- Holiday pay for vulnerable workers
What could the Single Enforcement Body mean for recruiters?
The main purpose of this proposal is to introduce an easily identified body where workers know they can receive the support and help they need regarding their employment rights. This body will also support organisations who seek to comply with the rules, and foster fair and equal workplace treatment.
Any recruitment agency who is compliant currently, will have no cause for concern.
Our thoughts on the Single Enforcement Body
The move to regulate umbrella companies is welcomed by Parasol. As founding members of the FCSA, we have been instrumental in driving compliance in the industry. As part of our role on the board of FCSA we have actively contributed to these consultations and will continue to do so.
We believe that the regulation of umbrella companies can only be positive for contractors, recruitment agencies and end hirers, as well as compliant umbrella companies. Until state regulation of umbrella companies is confirmed we recommend always completing your own due diligence on the umbrella companies you contract with to ensure you and your contractors are protected.
If you are looking to develop a preferred supplier list or audit your existing one, get in touch and we will be happy to advise you.
For more information, take a look at this Government publication surrounding the Single Enforcement Body.
For more information, read this Government publication surrounding the single enforcement body.
*At the time of writing – January 2020.