Ban the use of umbrella companies in the construction industry

Closed 7,516 signatures

What the petition asks

Umbrella companies must be banned as the care for workers is being further broken down amongst parties within the supply chain. This could help to ensure that employers continue to assume full responsibility for workers. This could also help to ensure that pay rates are inclusive of all deductions.

IR35 has pushed contractors/agencies towards the reliance on Umbrella companies to take on employer liability, and this can lead to the avoidance of IR35 scrutiny. As a result, this incurs additional deductions on workers rates such as Employers NI, Apprenticeship Levy (which isn't practical for the circumstances) as well as Payroll margin (which Umbrella companies claim to make a profit). This can reduce workers’ pay drastically as well as increase the volatility of the industry.

Timeline

23 Apr 2021	Petition opened for signatures
23 Oct 2021	Closed to new signatures

Key facts

Signatures 7,516

Status Closed

Opened 23 Apr 2021

Closed 23 Oct 2021

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