The 40-page consultation document published yesterday aimed at providing an ‘up-to-date and well-informed view’ of how umbrellas operate with the aim to develop rules to regulate the market’s practices. It also aims to make sure the regulations protect workers and allow businesses to ‘operate flexibly’.

The government plans to bring umbrella companies into the scope of the framework that regulates employment agencies and employment businesses which are currently covered by the Employment Agency Standards Inspectorate (EAS).