UK government proposals to create a workers’ watchdog have been slammed by campaigners for not adequately covering umbrella companies, some of which have been accused of sharp practices as the IR35 off-payroll tax revamp expands their usage among contractors.
This week the Department for Business, Energy and Industrial Strategy said it would launch a new organisation to tackle modern slavery, enforce the minimum wage and protect agency workers, work currently spread across three different regulatory bodies.
The single enforcement unit will take a “one-stop shop” approach to improve administration through better co-ordination and pooling intelligence, according to a BEIS statement.
But campaigners for the better regulation of umbrella companies – some of which have been accused of syphoning off pay through opaque fees and withholding holiday pay – said the new body would not go far enough in stamping out rogue practice.
