Umbrella Companies | Recruitment licensing decision to benefit umbrella company contractors?

Recruitment licensing decision to benefit umbrella company contractors?

The REC has won a victory in its fight to persuade the government not to extend the Gangmaster Licensing Authority.

The Confederation has been concerned that an extension would lead to additional costs without catching rogue providers who operate without a licence.

On Friday last week, the Minister for Employment Relations, Edward Davey, wrote to the REC and confirmed that the coalition agrees with its position regarding the GLA.

The government also emphasised that it is committed to using regulatory bodies such as the Employment Agency Standards Inspectorate for risk-based enforcement.

Over the past six months the REC has been talking to its members about licensing and the regulatory environment. It concluded that extending the remit of the GLA was not the best way forward, and would not benefit umbrella company freelancers and limited company contractors.

APSCo had also been consulting its members on whether they thought licensing would help the profile and reputation of the industry. Although 56% of delegates voted for the association to continue exploring the possibilities of regulation, the extension of the GLA was mentioned as just one of a number of possible means of delivering it.

Kevin Green, the Chief Executive of the REC, is delighted that the government has dealt with this subject quickly and effectively. He said that the REC intends to continue working with the government to raise standards in the recruitment industry and eliminate rogue players who flout the rules.

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Image: Victory by harrystaab

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