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Concerns were originally raised by Lawspeed suggesting that umbrella companies may compete directly against agencies has been rejected by APSCo. The article published last week from Lawspeed sees Adrian Marlowe, their Managing Director and Chairman of the Association of Recruitment Consultancies (ARC) say that “agencies regard umbrella competition as crossing the red line, and we first warned about the possibility of this threat more than 10 years ago,” he then goes on to encourage agencies to implement anti-competition clauses as part of their contracts.

APSCo Head of External Relations, Samantha Hurley described the comments as non-specific, unfounded and potentially damaging. As a result of the article APSCo canvassed all affiliate members and received an overwhelming response;

“We received over 30 responses from umbrella providers all confirming that they have absolutely no intention, now or in the foreseeable future of competing with their recruitment company clients by providing such services. While it is true that some of our members have over-arching employment contracts which require them to help contractors look for work, this activity goes no further than helping them review job boards, and contacting previous recruitment companies they have worked with.”

Marlowe, as chair of ARC has defended Lawspeed’s original piece: “Lawspeed, as part of its normal day to day business, gave legitimate advice on a live issue of concern for both agencies and umbrella companies. ARC now welcomes the undertaking from APSCO on behalf of its 30 umbrella members that they are not and will not compete with agencies in any form.”

Samantha Hurley continued: “APSCo affiliated umbrella companies have extremely good and trusting business relationships with their recruitment business clients, and they have expressed deep concern about the comments made by Mr Marlowe which appear to be without foundation in the professional sector and which can only serve to fuel potential bad publicity and panic – a situation which is extremely unhelpful to the industry as a whole.As far as APSCo is concerned its umbrella company members provide a valuable and professional service to both candidates and recruitment businesses,” she continues. “We found absolutely no evidence of umbrella companies breaching the confidentiality of their arrangements with recruitment firms, or of them deliberately setting themselves up in competition with their recruitment company clients.”


Lisa Keeble is the Managing Director for Contractor Umbrella Ltd, one of the UK’s Most Respected Umbrella Companies and founder member of AllUmbrellaCompaniesAreEqual.
Learn more about Lisa on Google.


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