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Can a contractor create his own agency?
If a contractor decides he needs more workers, can that company create an umbrella company to act as an agency to employ people and thus evade the normal statutes?
By statutes I meant how he employs you. A direct employer gives you longer term employment and you are covered by any union agreements. An agency worker doesn't usually have any rights and is always first out of the door.
2 Answers
- SimonCLv 71 decade agoFavorite Answer
What do you mean by "evade the normal statutes"?
If someone is an employee then all the normal employment rules and legislation will apply. Even when someone is employed by an agency rather than the company they are actually doing work for the rules still apply, and the worker has all the normal rights.
If you create a subsidiary company to employ people you are moving the responsibility elsewhere, not evading it. And if you create a complicated web of companies and links between them you are more likely to come unstuck or get something very wrong.
- bob mLv 51 decade ago
Unwise, and probably unnecessary. It is possible to take people on as "self employed". Unwise as the contractor should concentrate upon creating revenue and profits from the core business, and spend no time running an agency.
