FCSA joins calls for payroll company investigation

FCSA joins calls for payroll company investigation

The Freelancer and Contractor Services Association (FCSA) fully supports calls for an investigation into the practices of certain payroll companies in the construction industry which falsely register workers as self-employed. This follows a Daily Mirror investigation which revealed that thousands of employed construction workers may have been made redundant and re-hired as self-employed contractors doing the same job – saving companies significant sums on National Insurance contributions and other employment rights, such as paid sick leave and holiday pay.

Stuart Davis, Chairman of the FCSA said:

“Fraudulent employment practices deny employees their rights and take money from the Treasury. It is therefore right that Government investigates this matter rigorously. But it is vital to distinguish between the highly-skilled, professional contractor who chooses to work flexibly, and the oppressed worker forced to change his employment status to keep his job. The UK’s legitimate flexible workforce contributes £21 billion to the economy and continues to provide crucial flexibility for the economy across a wide range of sectors as it recovers from recession.

“The Code of Conduct followed by FCSA member companies explicitly prohibits these kinds of activities by payroll companies – all comply fully with the law and relevant legislation, making them a trusted option for contractors and companies seeking contractors and freelancers. FCSA members provide true employment solutions, not just payroll solutions – a ‘gold standard’ for the freelancer and contractor services industry recognised by HM Revenue and Customs and which should become the standard to which all companies aspire.”