UK slammed over ‘dodgy umbrella companies’ — Analysis
The umbrella companies that employ 600,000 British temporary workers are making it possible for them to pay their basic wages.
On Monday, the Trades Union Congress (TUC), accused UK of not revealing adequate plans to address labor market abuses. “dodgy”Many temporary workers are employed by umbrella companies.
The TUC is concerned that umbrella companies could be exploiting temporary workers to make their pay more.
The UK government has previously accepted estimates that labor market abuses by umbrella companies cost workers and the treasury £4.5 billion ($5.87 billion) a year in misappropriated funds, unpaid wages and tax fraud.
TUC is the largest trade union in Britain, representing around 5.5million workers. It also includes 48 affiliate unions. The TUC’s general secretary, Frances O’Grady, argued that “lack of regulation lets dodgy umbrella companies off the hook” It allows them to “act with impunity and treat workers appallingly.”
“Tinkering around the edges won’t cut it. It’s time for a ban on umbrella companies,” O’Grady said, citing, for example, how there “aren’t enough inspectors to make sure companies stick to the rules.”
The UK government is currently working on rules to regulate the labour market in order to address concerns about umbrella companies. Independent contractors that are not required to use umbrellas under current plans would not fall within the definition of “independent contractor”. “agency workers,” meaning they’d fall outside the scope of the proposals.
Government officials have not yet responded to the TUC’s latest criticism.
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