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Tax Avoidance

Question for Department for Business, Energy and Industrial Strategy

UIN 16056, tabled on 15 June 2021

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will regulate umbrella companies.

Answered on

23 June 2021

Agency workers’ rights are protected by legislation that covers employment businesses and employment agencies. Umbrella companies are not covered by this legislation, and they fall outside the remit of the Employment Agency Standards (EAS) Inspectorate, which is the body responsible for enforcing these protections.

The Government has committed to expand state enforcement for agency workers to cover umbrella companies. This will enable inspectors to investigate relevant complaints involving umbrella companies and take action where necessary. This will require primary legislation, which the Government will bring forward in due course.