Stakeholders have recently scrutinised the FCSA because of recent changes to their Codes of Compliance. In this article, we share an exclusive interview with Chris Bryce, CEO of the FCSA. Chris explains that the FCSA “wish to set the record straight” and has provided excellent insight into what has happened. Keep reading and learn more about what’s happened and how the FCSA have officially responded.
FCSA stakeholders “mischaracterise events or draw incorrect conclusions”
The Freelancer and Contractor Services Association (FCSA) is the UK’s leading professional body dedicated to ensuring the supply chain of temporary workers is compliant with UK tax law. Despite working tirelessly to protect contractors and freelancers and promote compliance within the sector, the FCSA often faces criticism from stakeholders.
Most recently, there have been rumours about the FCSA and its newly updated Codes of Compliance. Some contractor-orientation news outlets have claimed the FCSA submitted a “watered-down” version of the planned updates to the Codes of Compliance – to keep the peace with a disgruntled member. However, it appears that this isn’t the whole story.
The FCSA quickly released a public statement explaining what had happened, followed by another announcement to reiterate what had occurred, and why. However, despite this extensive effort to reassure stakeholders that everything has been done in the best interests of temporary workers, perhaps a little uncertainty has remained.
To better understand the latest developments at the FCSA and what the recent updates to the FCSA’s Codes of Compliance mean, we caught up with Chris Bryce. Chris, the FCSA’s CEO, has spoken to us in the past about industry matters, and we’re very grateful for his time to clear up the confusion that’s arisen within the sector.
There has recently been some controversy regarding the recently updated FCSA Codes of Compliance and Holiday Pay – what would you say to any stakeholders who are suggesting the FCSA was bullied by Advance?
“Following the various news items and social media posts about recent updates to the FCSA Codes, many of which mischaracterise events or draw incorrect conclusions, FCSA wish to set the record straight. We received an observation from one of our members, Advance, that the wording as it stood would require FCSA members to act unlawfully since it could discourage employees from taking holidays in the holiday year (as required by the Working Time Regulations “WTR”) and simply take holiday pay instead. Following consultation with our lawyers, Advance’s comments were taken on-board, and the Code was updated. Like any organisation, FCSA does not want to put any of its members in a position where they may be forced to act in breach of WTR or any other regulations. We’d like to take this opportunity to thank all its members, including Advance, for contributing to the Codes with regards to best practice and corporate governance. Advance have been an FCSA member for some time and earlier this year were successfully reassessed for compliance with the FCSA Codes.”
What advice would you offer to any contractors or freelancers who believe they may have had Holiday Pay withheld by their umbrella company?
“FCSA’s Code stipulates that members should remind workers to make full use of their holidays within the holiday year and to pay out all holiday pay that is due.”
It seems that every time the FCSA tries to implement a positive change (for example, updates to the Codes of Compliance), it’s challenged by stakeholders who question the FCSA’s intentions and integrity. This must be extremely disappointing and frustrating?
“Like many successful organisations, FCSA does have its critics but we always welcome and are open to constructive working relationships with any stakeholder.”
There has recently been a lot of talk about the government regulating the umbrella company marketplace. Have you heard anything about this and what are your predictions regarding the industry in the next 12-18 months?
“FCSA was disappointed to see that government was not included an Employment Bill within the Queen’s speech earlier this year, which could have delivered greater protection for contingency workers. Operating in the absence of sector regulation, FCSA represents over 75 compliant umbrella organisations working in the UK, which in turn support more than 120,000 freelancers. FCSA is in favour of light-touch regulation of the sector, to better uphold and drive forward standards and compliance within the industry. We look forward to working with government and especially the Director of Labour Market Enforcement.”
As you will have noticed, the umbrellacompanies.org.uk is proud to feature FCSA accredited umbrella companies (although we must reiterate to our readers that we are in no way affiliated with the FCSA). Why should contractors only consider using an FCSA accredited umbrella?
“FCSA Accredited Members are rightly proud of being able to demonstrate the highest standard of compliance in the professional employment services sector.
Not only are they required to adhere to FCSA’s Charter, they are also tested for compliance with FCSA’s standards.
Our Accredited Members have been assessed by fully independent experts from tax, accountancy and legal professional services firms to confirm that they adhere to the rigorous FCSA Codes of Compliance. This stringent test of their business operations is a clear commercial differentiator for umbrella employers, limited company advisors, and self-employed/CIS contractor providers, and minimises the risk for your customers. It is the only compliance standard recognised and endorsed by all of the UK’s leading recruitment bodies.”
A huge thank you to Chris Bryce for taking the time to answer our questions and thank you to our readers for checking out this article. You may be interested in following Chris Bryce on social media and checking out some of the links below.
- Follow Chris Bryce on LinkedIn – click here.
- Follow Chris Bryce on Twitter – click here.
- View Chris’ blog on the FCSA’s website – click here.
Top 10 umbrella companies
The team at umbrellacompanies.org.uk has put together a list of our top 10 umbrella companies – and we recommend you check it out. Every top 10 umbrella company is accredited by either the Freelancer and Contractor Services Association (FCSA) or Professional Passport, and some have special offers running at the moment. Don’t put up with a substandard service from your umbrella company – switch now and never look back!
