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Thread: The Use Of Umbrella Companies

  1. #1
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    Year : 2008

    Default The Use Of Umbrella Companies

    I work for the council on highways and have a full time contract. There are about 20 full timers and 20 agency staff, with another 12 being taken on soon.Some of the agency staff have been with us for over 5 years and it ****es me of that some good lads are not given a full time contract.
    Last year they were employed by the agency and given 20 holidays a year. However new legislation was brought in
    "New rules governing the employment of agency and temporary workers have come into force on 1 October 2011.
    The rules mean that agency and temporary workers who work in the same role with the same hirer for 12 continuous calendar weeks will be entitled to the same basic employment and working conditions as employees in comparable roles.
    Temporary workers must also be given access to collective on-site facilities such as staff canteens, childcare, parking and transport, and also access to information to relevant job vacancies in the organisation on their first day. After 12 weeks, they must be given equal treatment with regards to key elements of pay such as salary, overtime pay, shift allowances, and also working time entitlements such as duration of work, night work, rest periods and breaks, and annual leave."
    To get round this they have now made them go self employed with the agency and they use an umbrella company to sort the wages. They get paid around £10 hour (this is guys who do kerbing,flagging,blockpaving etc etc), dont get holidays, pay the agency £40 a week to sort some tax thing out and they still have to pay some of their own tax. It sucks big time and they are worse off now than they were last year and us full timers are getting paid more an hour, plus 30 holidays a year.

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    Regular Member v6vc's Avatar
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    Yeah I've seen this before but in the construction industry, as you've guessed, just a dodge to get out of employing people! The business that I looked into took the subby's on and made them partners so it was effectively a massive partnership and therefore not covered by employment law. I don't think this kind of thing will last though, HMRC I'm sure will stamp it out, it's just when.

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    Regular Member Ben50n's Avatar
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    The government thought they were doing the Agency workers a good thing, givng them similar rights to people with normal contracts.

    Instead all it will do is mean that the condtiions will change for them and will probably only get a years contract, which means i will be harder for them to get credit, mortgages etc.

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    Regular Member Derek Mc's Avatar
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    This is quite common especially in the construction and commodity labour sectors. The aim of the legislation was to make things better however it is really hurting many casual and self employed workers

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