Following Matthew Taylor’s review into Modern Employment and the specific recommendation within the report ‘Good Work’ to bring more transparency to the UK labour market, APSCo and Professional Passport are launching a series of documents for APSCo members to further this objective.

The first in the series, entitled ’10 Steps for Umbrella Compliance’, provides an overview of the key points recruiters should look for in compliant umbrella companies. APSCo members will receive further guidance over the coming months giving a more in-depth analysis on some of the key topics and risks.

The documents will be supported by a series of presentations for APSCo members at its events.

Tania Bowers General Counsel at APSCo commented:

“Our members are understandably concerned about their relationships with umbrella companies. Since the introduction of the IR35 off payroll rules in the public sector, recruiters have seen a swing back to the use of umbrella companies by individuals previously working through personal service companies. Our members report a proliferation of umbrella companies in the marketplace. Currently umbrella companies are largely unregulated and APSCo supports moves to regulate the sector. In the meantime we are keen to offer our members guidance on how to establish that an umbrella company is compliant and also to help them understand the structure and business model of the sector.”

Crawford Temple MD of Professional Passport commented:

“This is an important step; for too long recruiters have not understood the complexity that comes with running a compliant umbrella. Bringing transparency to recruiters will help them work more closely with their selected providers and agree operational processes that will simplify the relationships. It will also ensure that their candidates’ expectations align to the umbrella processes and procedures.”