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Umbrella company contractors will be interested to hear that it has been claimed that Labour’s proposed clampdown on zero-hour contracts, could very well increase demand for the services of compliant umbrella companies.

Labour leader Ed Miliband made the announcement that a Labour government would legislate to give people the right to a ‘regular’ contract, after 12 weeks of working ‘regular’ hours.

Rob Crossland, founder and chief executive of umbrella employer Parasol, said the plan had the potential to boost the contingent workforce management sector.

He explained, “It seems logical that, faced with these proposals being enacted, hirers would look to make greater use of third-party employment providers that free them from the risks and costs associated with taking on staff.

“Employers in many sectors have an inherent need for access to a flexible labour pool, in order to respond to fluctuations in workload and demand.

“By outsourcing employment of contingent workers to an ethical umbrella provider, organisations can minimise their exposure to risk whilst ensuring that workers are enjoying full employment rights and benefits – including guaranteed minimum hours of work.”

Rob added, “Given the recent demonisation of our sector by Labour and the trade unions, it’s ironic that we could actually end up benefiting from this policy.

“We have always maintained that professional umbrella employers have an important role to play in the UK labour market, and this policy announcement by Labour goes to prove our point.”

Simon Dolan is the Sales & Marketing Manager for Contractor Umbrella Ltd, one of the UK’s Most Respected Umbrella Companies and founder member of AllUmbrellaCompaniesAreEqual.
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