Avoid the risks of partnering with a recruiter using a non-compliant umbrella company!
As the NMW/NLW rates are set to change in the first quarter of this year, many recruitment businesses will be reassessing their rates along with the new pay rates for your business. If one of your partners offers a surprisingly lower rate, ensure you are auditing them as you may run the risk of working with a recruiter who uses a non-compliant umbrella company.
Here are some critical risks to keep in mind that could affect both workers and your business:
📌Hidden Fees: Workers might encounter unexpected deductions, which can reduce their income.
📌Non-Compliance: Engaging with non-compliant recruiters can lead to reputational harm, legal liabilities, or penalties.
📌Worker Rights: A lack of transparency may result in the violation of workers’ rights, including issues like unpaid holiday pay or incorrect deductions.
📌Tax Risks: With increased scrutiny from HMRC, non-compliant arrangements could trigger tax investigations or liabilities.
It is crucial for businesses to thoroughly check who they work with to ensure they adhere to employment law and GLAA regulations where relevant.
Ethical practice is a priority.
For more information on what to look out for please look at the below link.
Check who you do business with!
umbrellacompanies NMW compliance