Welsh place ban on umbrella payroll firms

16 March 2015

The Construction Enquirer has reported that the Welsh Government has formally barred the use of umbrella payroll companies on public works contracts.

Jane Hutt, minister for finance in Wales has launched new guidance aimed at stamping out the use of false self employment and umbrella payment schemes.

Construction union campaigners at UCATT seized on the victory and have now written to councillors in Yorkshire calling on them to follow the Welsh lead.


Inspectors from the Employment Agency Standards Inspectorate (EAS) led a number of successful visits to businesses in the Sheffield area at the beginning of February 2015. EAS inspectors were accompanied by officers from HMRC’s National Minimum Wage (NMW) team.

During the course of the targeted inspection of 15 employment businesses, EAS identified 32 potential breaches of the Conduct of Employment Agencies and Employment Businesses Regulations 2003, as well as a potential breach of the Employment Agencies Act 1973.

The majority of the breaches found relate to the terms being issued to either the work-seeker or hiring company, or information that they were required to collect and pass on to the work-seeker or hirer.

The Pensions Regulator also took part in this visit which builds on previously successful joint visits undertaken by EAS and the NMW team. All of the employment businesses visited by The Pensions Regulator had started auto enrolling temporary workers into pension schemes.