Tackling non-compliance in the contingent labour supply chain

On 6 June the Treasury issued a new consultation titled ‘Tackling non-compliance in the umbrella company market’ (tinyurl.com/hmtumbrellacondoc) but it would be a mistake to think it’s only of interest to umbrella companies. This could impact any organisation that hires temporary staff or is in a chain with contingent or off payroll labour.

The document sets out options for future regulation in the supply chain in a comprehensive consultation covering both employment rights and tax. The closing date for responding is 29 August 2023. The document covers a hefty 54 pages in total and 52 questions plus a summary of responses to the November 2021 call for evidence which closed in February 2022. This aimed to clarify the government’s understanding of the role that umbrella companies play in the temporary labour market and the ‘behaviours in the market that were causing...