Unite demands government outlaws umbrella companies Unite demands government outlaws umbrella companies
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    Default Unite demands government outlaws umbrella companies

    Unite demands government outlaws umbrella companies
    24 February 2017
    Unite, the country’s biggest union for construction workers, has called for umbrella companies to be outlawed after a BBC report exposed how construction workers are falling victim to wage theft.

    The union made its demand after BBC Look North today (February 24) carried an expose on how workers operating via umbrella companies in construction and other sectors are having huge deductions taken from their pay.

    Umbrella company workers have to pay employers’ and employees’ national insurance contributions as well as income tax, a tax rate of 45.8 pence in the pound on eligible earnings. Workers often have their holiday pay rolled into the rate, meaning they are unpaid when taking leave. If they pay into an auto-enrolment pension they have to pay both employee and employer contributions. Umbrella company workers have to pay a fee of around £20 a week to be paid in this manner.

    Unite have recently established a bogus self-employment unit to step up their support of members who are being denied basic employment rights. The unit is also targeting umbrella companies.

    Acting general secretary, Gail Cartmail, said: “Umbrella companies are highly immoral and rip off workers. The government need to end the misery of umbrella company workers by outlawing this practice and all forms of bogus self-employment.”

    “Unite has already succeeded in outlawing umbrella companies for example on Hinkley Point. The Scottish and Welsh governments and several local authorities have introduced measures outlawing umbrella companies on public sector contracts. If the government fails to act we will step up pressure on all public and private sector organisations to ban these sinister organisations.

    “The message is loud and clear Unite are coming for rogue employers who increasingly rely on false self-employment. We will leave no stone unturned in exposing the blatant unfairness of umbrella companies, ending exploitation and getting justice for our members.”

    The government has previously estimated that 430,000 workers are paid via umbrella companies. Unite believes that this figure is an underestimate as unscrupulous employers in sectors such as logistics, supply teaching and pharmaceuticals are increasingly using this form of employment.


    ENDS

    Notes to editors:

    The huge growth in umbrella companies operating in construction began in April 2014. This was a result of government legislation which attempted to outlaw employment agencies from bogusly self-employing construction workers. Overnight the industry moved to the umbrella company model in order to avoid paying employer’s NI contributions.

    For more information please contact Unite communications officer Barckley Sumner on 020 3371 2067 or 07802 329235.

    Email: barckley.sumner@unitetheunion.org

    - See more at: Unite demands government outlaws umbrella companies

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    Quote Originally Posted by Graham1967 View Post
    The huge growth in umbrella companies operating in construction began in April 2014. This was a result of government legislation which attempted to outlaw employment agencies from bogusly self-employing construction workers. Overnight the industry moved to the umbrella company model in order to avoid paying employer’s NI contributions.
    Eerie echoes of "the huge growth in contractor schemes" as a result of IR35 - complete with slew of unintended consequences.

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    Quote Originally Posted by DotasScandal View Post
    Eerie echoes of "the huge growth in contractor schemes" as a result of IR35 - complete with slew of unintended consequences.
    Yes this

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    Quote Originally Posted by bobspud View Post
    Yes this
    Unite's viewpoint is if you employ someone you put them on payroll....

    You can't offload the problem to whatever solution hasn't been explicitly banned yet which is what those employers are still doing...
    Last edited by eek; 24th February 2017 at 18:42.
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    Giving the fact that the majority of the current ltd. contractors that decide to stay in the PS inside IR35 are going to switch to Umbrella, it will be fun times if the unions fight to ban them

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    Love to see Len and Lucy from ContractorUmbrella in a room dooking it out

    'CUK forum personality of 2011 - Winner - Yes really!!!!

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    Quote Originally Posted by sal View Post
    Giving the fact that the majority of the current ltd. contractors that decide to stay in the PS inside IR35 are going to switch to Umbrella, it will be fun times if the unions fight to ban them
    The unions are fighting to ban them. And the stories to come in April and May of people forced to use umbrella companies will make the case for them.
    merely at clientco for the entertainment

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    Nothing new, they have been saying this since at least 2014

    https://www.tuc.org.uk/industrial-is...ella-companies

    Just goes to show all trade organisations are useless it seems, not just.....
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

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    Quote Originally Posted by SimonMac View Post
    Nothing new, they have been saying this since at least 2014

    https://www.tuc.org.uk/industrial-is...ella-companies

    Just goes to show all trade organisations are useless it seems, not just.....
    Yep but this is in reaction to the BBC reporting on it - which is a nice start for the hot potato this story will become in late April early May....
    merely at clientco for the entertainment

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    Quote Originally Posted by eek View Post
    The unions are fighting to ban them. And the stories to come in April and May of people forced to use umbrella companies will make the case for them.
    Exactly, and if successful it will force these people into ClientCo/Agency payroll, closing the gap between contractors and employees even further. With the next stage being for employees to scream how someone doing the same job is getting paid more and contractors screaming how they are being paid/taxed as employees but don't have rights to sick pay/paid leave/maternity leave.

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