Umbrella Ban


Welsh decision to ban umbrellas brings response from industry.

The decision by the Welsh Assembly’s to ban umbrella payroll services on its construction projects has brought dismay from the Freelancer and Contractor Services Association (FCSA). Commenting on the move, the FCSA said it was concerned that the step will work to tarnish the reputation of the many compliant and responsible umbrella companies working in the best interests of contractors and freelancers.

“Whilst I understand that this is a procurement decision I hope that it was not simply a knee jerk reaction to union lobbying,” says Julia Kermode, chief executive of the FCSA. “Umbrella employment is a positive choice for many and I am going to personally contact the Welsh Assembly Ministers concerned to ensure that they appreciate the benefits of this type of employment and have not simply been influenced by union misunderstandings.


Kermode also plans to continue talks with UCATT who she says “clearly has some misconceptions about the role of umbrella employers.” Kermode believes there needs to be more communication so that all involved can give proper consideration about what is right for projects and workers. 

“As a trade association for the umbrella sector, we want to work with all political parties and unions to ensure that good practice is the norm and stamp out bad practice where it exists,” Kermode concludes. “FCSA members adhere to a strict code of conduct and we are committed to ridding the industry of its cowboys as well as promoting umbrella employment as a viable and positive choice for the hirer and the worker.”

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