A report out over the weekend suggesting that workers are forced to use ‘umbrella firms’ and are losing out on pensions and pay is completely unfounded says The Freelancer & Contractor Services Association (FCSA). FCSA is responding to union criticism as UCATT continues to pedal false propaganda and paint an unfair picture of umbrella firms (The Guardian, January 29th 2016).
FCSA’s CEO Julia Kermode said: “Umbrella employment is a positive choice for many contractors. Many workers choose umbrella employment as this mechanism provides all statutory benefits of permanent employment whilst enabling the worker to fulfil a series of contract positions and have their affairs managed centrally. It is concerning that benefits of umbrella employment are constantly overlooked in some of the lobbying and media reports, and it is important that this balance is redressed so that the whole sector is not unfairly targeted.
“Being employed by an umbrella does in fact ensure the right to pension contributions in the same way as any other employment and that right continues throughout multiple temporary assignments. FCSA works hard to promote compliancy and ethical practices and it is disappointing that UCATT will not listen. I am keen to open up talks with UCATT, which clearly has some misconceptions about the role of umbrella employers. Communication between all parties needs to be improved.”