MPs, unions and lobby groups say firms, though legal, are used to pay workers at arm’s length
Recruiters must clamp down on tax abuse and exploitation of workers via umbrella companies, the industry’s lobby group has told its members, amid growing pressure for regulation of temporary labour.
So-called umbrella companies, used by recruiters and employers to pay temporary workers, have attracted growing scrutiny from MPs and unions following reports of abuses across the industry and investigations by the Guardian and the BBC that raised concerns about agencies supplying the NHS test-and-trace scheme.
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