Umbrella Company Bribes
With the 2010 Bribery Act, agents could now be stuck in jail for taking umbrella company bribes to put contractors their way.
Under its provisions, they can now fine anyone attempting to bribe someone to put business their way or they can give them up to 10 years imprisonment.
This can apply where agencies demand money to put a contractor the way of an umbrella company or indeed to put all their contractors the way of an umbrella company.
This sort of thing has been happening for years. This is where agencies demand that contractors join a particular umbrella company when they take a contract through them.
Particular Umbrella Company
This is sometimes because they are ‘given a bung‘ to put all contractors the way of a particular umbrella company.
Contractors often complain that their agencies insist on paying them one of the umbrella companies on their PSL.
Now they could have them arrested for doing so.
Cash for Contractors
Umbrella Companies are obviously keen to get all of an agency‘s contractors. They are happy to pay cash in order for that to happen.
Agencies are also happy to get a fee for putting contractors the way of an agency whether the contractor wants that or not.
Now that could constitute an ‘inducement‘ to put business their way – in other words it could be termed a bribe.
Agencies in Serious Trouble
And that could get the agencies and the umbrella companies into very serious trouble with the law.
Next time you are told by an agency that you have to quit your umbrella company and join another one approved by the agency you can tell them that, in that case, you will have to contact the police under the Bribery Act of 2010.
See what kind of reaction that gets.
Umbrella company bribes could now get agencies into serious trouble – yet many still do it.
Please share this article using the social media buttons at the top and bottom of the page.
Ad – Contractor Services
Many private sector contractors are likely to be told by their client company either that they must operate as an off-payroll employee or join an umbrella company. It’s time to plan for that now.
They need to look at umbrellas ASAP.
Do you need an umbrella company that is right for you and returns you most? Fill out the form below to receive a call today.
For all necessary business insurance, including IR35, click on Business Insurance for Contractors