Details of the final rules has not been confirmed, but the original government proposals signalled the introduction of tough new rules to stop recruitment agencies from forcing workers to sign up to an umbrella company as a condition of accepting an assignment.

The government’s priority is to keep providing robust protections for workers, including those who work through umbrella companies, while supporting a flexible, responsive temporary labour market.

‘Too many workers, both freelancers and agency staff, are left worse off due to hidden costs, opaque deductions, and a lack of clarity about their rights through the use of umbrella companies,’ then business minister Peter Kyle said in the original Department for Business consultation on modernising the agency work rules in May.

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