UCATT in Umbrella Company tribunal victory

Construction union UCATT has won a significant victory against an umbrella company for the unlawful deduction of wages.

The UCATT member based in the North West took a case against umbrella company Paystream My Max Ltd to an employment tribunal. The employment tribunal judge found in UCATT’s favour as the respondents (Paystream My Max Ltd) “were not open and transparent”.

The UCATT member was awarded just under £4,000 for unlawful deductions as the judge assessed that our member had not agreed to deductions to be made for the employer’s national insurance contributions, the employer’s pension contributions, a margin payment (the umbrella company’s charge) and that holiday pay was rolled up into the rate.

Brian Rye, Acting General Secretary of UCATT, said: “This was a highly significant victory as it demonstrated that there is an opportunity to challenge the fairness of the practices of umbrella companies in tribunals. I would like to praise the courage of our member in taking the case and the hard work of the regional officials in supporting him throughout the process.
“Whenever UCATT has the clear opportunity to legally challenge the legality of umbrella companies we will not hesitate in doing so.”

Mr Rye, added: “Although this was a significant victory, this case is far from a magic bullet in the fight against umbrella companies. There is a multi-million pound industry which seeks to legitimise umbrella companies and false self-employment in construction. The problem of umbrella companies will continue until they are outlawed from the industry.”


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