FCSA recommends that any proposed regulation should focus on the protection of worker employees and the integrity of the supply chain, including compliant umbrella service providers.
The FCSA therefore calls for any proposed regulations to achieve four key aims:
• Recognise that compliant and ethical providers in the supply chain are beneficial services which ultimately protect workers
• Have a “light touch” and have regard to existing legislation such as
o Tax and Employment Law
o Conduct of Employment Agencies and Employment Businesses Regulations
o Agency Workers Regulations
• Create a greater focus on identifying rogue and unlawful operators and schemes
• Allow for the prosecution of the operators of those rogue companies, with deterrent fines for unremitted tax and NICs and, in clear cases of fraud or extortion, prison sentences
Specifically, FCSA recommends that any proposed regulation provides:
1. Protection of both workers and ethical service providers
2. Clarity as to the establishment, role, and powers of the SEB
3. Clarity of intent around mandatory remuneration e.g., holiday pay, SSP
4. Framing regulation to avoid excluding other outsourced worker models
5. Clarity on the priority of enforcement by HMRC
6. Investment in cyber expertise
7. Formation of a task force to pursue cyber attackers and cloning activity
