In the current labour market, with the introduction of new IR35 legislation, recruitment agencies have discovered many individuals who previously worked through PSCs, now opting to use umbrella services. However, according to Tania Bowers from the General Counsel at APSCo, “umbrella companies are largely unregulated” which is cause for concern as numerous recruiters are still trying to understand how full umbrella compliance works.


Helping recruiters understand the industry

Nonetheless, Tania Bowers asserted that “APSCo supports moves to regulate the sector” and that in the meantime they are keen to provide a solution, by offering “members guidance on how to establish that an umbrella company is compliant and also to help them understand the structure and business model of the sector.” As a result, APSCo has teamed up with Professional Passport to launch a series of documents and presentations, which provide more clarity and compliance to the umbrella market.

This series of documents and presentations will guide consultants and recruitment agencies on some of the key topics and risks surrounding the umbrella industry. The first document ‘10 Steps for Umbrella Compliance’ outlines what factors recruiters need to identify in an umbrella company to certify them as compliant.


Where did the idea come from?

The launch of this project was prompted by the ‘Good Work’ plan, which was the Government’s response to Matthew Taylor’s review into modern employment. A specific suggestion within the ‘Good Work’ report was of the importance of making the UK labour market more transparent. Consequently, the documents created by APSCo and Professional Passport will provide helpful information for recruiters to better understand umbrella services and what to expect from compliant umbrella companies.

Crawford Temple MD of Professional Passport surmised: “for too long recruiters have not understood the complexity that comes with running a compliant umbrella. Bringing transparency to recruiters will help them work more closely with their selected providers and agree operational processes that will simplify the relationships. It will also ensure that their candidates’ expectations align to the umbrella processes and procedures.”

This is why Cloud9 Umbrella is proud to be affiliated with APSCo and audited by Professional Passport. We can guarantee that our service is clear, concise and compliant for both recruitment agencies and contractors, alike.


Click here for the first document by APSCo on 10 Steps for Umbrella Compliance.

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