In our last bulletin we went through the options open to agencies come 1st January, using umbrella providers that rely on Mobile Worker Schemes. Since then a challenge for a Judicial Review against Vince Cable, the Business Secretary, in relation to the legislative amendment, has been thrown out of court.
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Cordant Group loses travel expense battle against Cable |
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Minimum wage challenge squashed by court |
This clarifies once and for all, that expenses cannot form part of the National Minimum Wage.
Now legitimate companies can compete on an even field, there is no longer a need to use these companies whose only business model was an ability to bend the law.
Zeva do, however predict a move by these companies into self employed solutions. Zeva’s message is beware. Where Mobile worker Schemes were plain dodgy, false self employment is a much bigger risk. Further, because the companies will have to charge a hefty fee to replace their lost income stream, many workers and agencies will find that it may well have been cheaper to pay the worker legally PAYE in the first place
For the cheapest way to pay low paid workers legally, please call Matt on 0808 168 2772
