![]() The union body says in particular, workers face misleading and unfair deductions from pay, adding that breaches of holiday leave and pay entitlement are widespread - with umbrella companies preventing workers from taking their holiday entitlements. The TUC says that umbrella companies create multiple issues which mean it is difficult for workers to exercise their basic rights. In many cases, the umbrella company will also employ the agency worker, with the agency workers becoming “employees” of the umbrella company. The union body says the scandalous workplace practices associated with umbrella companies have “no place in modern Britain”.Īn umbrella company is essentially a payroll company, used by recruitment agencies to operate a PAYE (pay-as-you-earn) system for the agency workers that they find work for. The TUC has today (Thursday) called for umbrella companies to be banned, as it publishes a new report on their increasingly widespread use in the UK labour market. ![]()
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