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The government has committed to creating a new enforcement body to uphold vulnerable workers’ employment rights as part of the ‘Good Work Plan’.
Several existing organisations will be brought together for the new, single workers rights body. It will also be given new powers to deliver more effective protection for flexible workers, such as those working through umbrella companies.
The REC, which represents professional recruiters in the UK, has called on HMRC to set up a hotline to allow workers to report bad practices by umbrella companies.
After recent reports of unscrupulous behaviour by some umbrella companies, the recruitment body joined several politicians in calling for tough new action to protect workers.
Following the introduction of new off-payroll working (IR35) rules in April, research suggests that around one-third of limited company contractors are currently working on ‘outside IR35’ contracts.
Separate studies from Qdos and inniAccountants concluded that around one-in-three (33% and 36% respectively) contractors have been able to retain or secure a new commercial contract.
According to the inniAccounts survey, which took place in March and April, 35% of contractors said that that they were either classed as ‘inside IR35’ or blocked from working through a personal service company (PSC).
