It is important for agencies to ensure that umbrella companies have a “fall back position” if the umbrella company they are dealing with does not pay the worker, it has been claimed.
“Claims of compliance by an umbrella should not lull the agency into a sense of security – as recent events have shown that sense can be false,” commented Adrian Marlowe, managing director of Lawspeed and chair of recruiter trade body the Association of Recruitment Consultancies.
His comments came after news of £10.6 million owed by JSA Services Limited to Home Revenue and Customs emerged.
The company, part of the JSA Group, entered into a voluntary arrangement, while some contractors have been left unpaid by two other umbrella service providers, according to Lawspeed.
Responding to the comments from Mr Marlowe, JSA told Recruiter magazine that it had taken the “appropriate” action by entering into debt restructuring and the company was able to ensure all of its contractors will be paid on time in the normal manner.
