Welsh slap ban on umbrella payroll firms

Aaron Morby 5 years ago
Share

The Welsh Government has formally barred the use of umbrella payroll companies on public works contracts.

Jane Hutt,  minister for finance in Wales,  yesterday launched new guidance aimed at stamping out the use of false self employment and umbrella payment schemes.

Construction union campaigners at UCATT seized on the victory and have now written to councillors in Yorkshire calling on them to follow the Welsh lead.

Some employment firms have been using umbrella organisations and payment schemes to operate PAYE and NI contributions.

Construction workers forced to operate via umbrella companies report that they can be up to £100 a week worse off.

Workers have to pay both employees’ and employer’s national insurance contributions, which is over 25% of eligible earnings.

Workers are charged up to £30 a week for the privilege of being paid via an umbrella company.

Hut, who has responsibility for procurement, said: “As a result of UK Government legislation in April of last year, which was introduced to clamp down on false self employment by employment businesses, I understand many workers were moved to umbrella payment contracts that are operating unfair systems of pay and deductions.

“These practices are not right and by engaging in them, some businesses are gaining an unfair advantage.

“I am delighted to launch a new Procurement Advice Note to ensure fair employment practices are in place on publicly-funded projects.

She said: “I have greatly valued the advice from Unite, UCATT and GMB on the issues of false self employment and the use of umbrella payment schemes operating on some construction sites where workers are employed by employment businesses and not directly employed by the contractor.”

Construction union UCATT has used the decision to step up its campaign against umbrella companies.

Rob Morris, UCATT Yorkshire Regional Secretary, has written to all council leaders in the county asking them to ban umbrella companies.

Just days after sending the letters Morris claims he has already had several positive replies with council leaders keen to meet and further discuss the umbrella company problem.

Morris, said: “If the Welsh Government can bar umbrella companies from their contracts there is no reason why councils in Yorkshire cannot follow suit. Forcing workers to be paid by umbrella companies is creating financial misery for thousands of workers. Councils have a moral duty to prevent this exploitation on their projects.”

Latest news

Multiplex set for massive Elephant & Castle win

Contractor tipped to beat off competition from Mace for one of year's biggest building awards
2 days ago

Opinion: Now time for Boris to prove his worth

Prime Minister must stick to his promises as Labour needs a radical rethink
2 days ago

Graham to start £130m York Uni student scheme

Deal finalised on 1,480-bed student scheme
2 days ago

132 jobs saved as collapsed scaffolder Acorn pre-packed

Former directors of Acorn Scaffolding (Yorkshire) buy assets for £110,000
2 days ago

Balfour Beatty creates new technology chief role

Chris Johnson promoted to new strategic role reporting directly to Leo Quinn
2 days ago

Eutopia Homes advances debut £105m Salford scheme

Former Essential Living boss lodges plans for first of three schemes worth £365m
2 days ago

Thirteen Housing Group seeks two firms for £100m spend

Work involves maintenance to complex and high-rise housing blocks
2 days ago

Costain profits slashed after road row ruling

Profit forecasts halved following legal U-turn over Welsh road dispute
3 days ago

Balfour Beatty to exceed 2019 profit forecast

US probe into falsification of maintenance records extended to all 21 US air force bases
3 days ago

40 jobs axed as Leeds firm RDF Building collapses

Third east coast contractor sinks in less than 10 days
3 days ago

Dramatic crane collapse video shows site damage

Footage reveals aftermath of Kingston crane failure
3 days ago

Plans submitted for London ‘hanging gardens’ tower

36-storey 50 Fenchurch Street tower will feature huge green wall
4 days ago

Balfour gets go-ahead to restart Midland Met hospital

£267m contract award to restart job hit by Carillion collapse and funding wrangles
4 days ago

Vinci clinches Staffordshire Uni £40m skills hub

Work will start this spring on the Catalyst building in Stoke on Trent
3 days ago

McAlpine wins November contracts league race

BAM stakes claim as new favourite to be crowned 2019's greatest work winner
5 days ago

Tower crane in London collapses in high winds

Jib snaps on residential site in Kingston
5 days ago

Costain offloads Spanish golf courses for a loss

Costain to book £8.9m loss from sale of golf course and marina
4 days ago

Yorkshire Water names final AMP7 framework winners

Nine firms to share £650m clean and waste pipe spend
4 days ago

Balfour Beatty extolled as Britain’s most admired contractor

Business chiefs judge major contractors to find most admired firms
4 days ago

Amey chief executive Andy Milner exits

Amanda Fisher, MD of FM business, takes role of acting CEO
5 days ago

London council starts £520m housing upkeep contest

Lambeth to overhaul housing maintenance with new contractor line-up
5 days ago

£340m northern new-build framework winners

Six firms secure affordable housing major project lot in Yorkshire and Humberside region
5 days ago

Bad weather bogs down construction output

Construction suffers biggest monthly output fall for nearly two years
5 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

86 jobs cut as North East civils firm goes under

Joyce Construction & Civils is latest casualty of tightening market
6 days ago

Sewer breach sweeps away three workers on Tideway site

Court fines Thames Water Utilities £300,000 after Greenwich accident
5 days ago

Plans lodged for £30m Teesside indoor ski centre

Three-storey complex to be built at Middlesbrough Dock in Middlehaven
5 days ago

Willmott Dixon wins £18m historic London school rebuild

Historic St Dunstan’s College Lewisham site tol be redeveloped
5 days ago

Train narrowly misses trapped concrete mixer on crossing

Amey site staff beckoned truck onto crossing as warning lights flashed
5 days ago

Plans for Manchester Metropolitan Institute of Sport

Eric Wright has drawn up demolition and construction management plans
6 days ago

Contractor services