Recently the construction union UCATT has called for an urgent investigation into payroll companies who may be causing the Inland Revenue a loss of millions in unpaid National Insurance contributions, a direct result of false self employment. UCATT’s concerns and accusations gained momentum following an undercover report carried out by the Daily Mirror who successfully exposed some questionably run payroll companies who have a blatant willingness to flout the existing laws and rules set in place by the Revenue. UCATT maintains that because of this workers, who should be operating as employees, are forfeiting their basic employment rights.
The result: masses of workers who should be employees blindly walking into the world of self employment and a bad rap for the payroll companies who take a strong stance when it comes to following the rules by the letter. Unfortunately, we all seem to be guilty by association.
Alan Ritchie, general secretary of UCATT, says: “There has been a huge growth in payroll companies. These companies do not perform construction work, nor do they hire labour to companies, their sole reason for existence is to enable companies to deny workers basic employment rights whilst avoiding paying national insurance contributions.
Any payroll company who follows the existing rules to the fullest extent, as it should be done, would be quick to refute Mr. Ritchie’s comment but as Britain’s moaning culture increases and the actions of payroll companies begin to raise questions and eyebrows alike, it is fair to say that the issues raised by UCATT are well placed were some companies are concerned. That being said, any Umbrella company worth its salt should welcome an investigation as a chance of alleviating any concerns that unions may have. It is an opportunity to give a clear demonstration of how it should be done I.E. rigorous IR35 checks and a thorough qualification of any new candidates with an emphasis on continued customer service throughout said candidates temporary agency work.
Over the past 6 months or so a buzz phrase has been used on numerous occasions to describe the effect new rules and laws aimed at agency workers and Umbrella companies have: “Levelling the playing field.” Surely this is another opportunity to do that.
