The Freelancer & Contractor Services Association (FCSA) has released its consultation response to the Business and Trade Committee’s “Make Work Pay: Employment Rights Bill” inquiry. As the UK’s leading membership body for the temporary labour services market, FCSA emphasises the need for a nuanced approach that accounts for the unique complexities of agency and umbrella company employment.
While broadly supportive of improved worker protections, FCSA highlights concerns that a “one-size-fits-all” solution risks unintended consequences for businesses, compliant umbrella providers, and workers seeking flexibility.
Key Recommendations from FCSA:
- Exclude agency and temporary workers from additional zero-hours contract regulations unless clear, mirrored guarantees are established throughout the supply chain.
- Clarify Statutory Sick Pay (SSP) entitlements, ensuring temporary workers not on assignment are not unfairly covered.
- Address feasibility issues in “fire and rehire” reforms to avoid unintended burdens on compliant employers.
- Avoid diluting employment flexibility while recognising the value compliant umbrella companies bring to the labour market.
This submission ties together FCSA’s recent recommendations to four Government consultations, including those on zero-hours contracts, statutory sick pay, collective redundancy rules, and industrial relations reforms. FCSA continues to stress that compliant, ethical umbrella companies are part of the solution to raising standards, providing 210,000 workers with secure employment and remitting £6 billion annually to HMRC.
FCSA Chief Executive Chris Bryce stated:
“While we fully support the government’s ambition to improve worker rights, reform must be implemented in a way that reflects the realities of the labour market. Compliant umbrella companies play a vital role in securing rights for workers and contributing to our tax system, and our recommendations aim to balance worker protections with the flexibility businesses and contractors rely on.”
FCSA remains committed to working with Parliament to ensure that legislation achieves its goals, without destabilising the labour market. We would like to see Parliament consider tabling Amendments to that end, and FCSA are very willing to assist with any drafting.
Read the full response from FCSA here:
