Legal and General

The Choice of an Umbrella Company

The decision as to which umbrella company a contractor uses is entirely dependent on the choice of the contractor. Recruitment agencies will be breaking the law if they are cherry picking or limiting the choices of umbrella companies to those of their friend’s cronies and associates.

They are essentially creating a cartel or an oligopolistic market. This is unethical and goes against the laws of a free market economy. They are essentially saying that contractors do not have the ability to judge for themselves good and bad umbrella companies. They have used all sort of excuses, for e.g. ‘’not been HMRC compliant’’.

We would like to hear from contractors who are not giving a free choice with regards to umbrella companies. We intend to challenge this decision in the law courts if these umbrella companies don’t stop their unethical and bullying actions.

Recruitment agencies in conjunction with HMRC should be working together to ensure that registered umbrella companies have a best practice code of conduct and making it a level plain field. At the moment, the bigger umbrella companies have an unfair advantage and some agencies are abusing their powers, the government said use umbrella companies not handpick or go against supply and demand laws economic laws and marginalise or make irrelevant the decision of the individual contractors. We shall be challenging some recruitment agencies.