Lose the umbrella call

Hundreds of dismayed construction workers are demonstrating outside Parliament tomorrow (Wednesday November 26) in protest at being forced to be paid through so-called umbrella companies, who are pocketing up to ÂŁ120 a week from their pay.

The Tory-led government introduced new measures in April of this year which requires construction workers to be paid through PAYE – pay-as-you-earn tax. Umbrella companies processes PAYE payroll for contractors.

They take a cut of £20-£30 per week from construction workers pay and charge the worker both employees’ and employer’s national insurance contributions (over 25 per cent of eligible pay).

Workers are also officially paid at the national minimum wage, despite having negotiated a pay rate far in excess.

“Unite is campaigning for direct employment and an end to all scams that foster a race to the bottom,” said Gail Cartmail, Unite assistant general secretary.

Payslips are made so complicated that workers have reported that they don’t understand how their pay is being calculated.

Many umbrella company contracts are for zero hours meaning workers don’t know how many hours they will be required to work in a week. But there is also an exclusivity clause, which prevents them from working for anyone else.

“Construction workers are crucial in laying the foundations for our NHS and other public services, which are dependent on all workers paying income tax and National insurance,” said Gail Cartmail.

“The injustice of umbrella companies is that they rip off workers who are forced to pay more than their fair share,” she continued.