Protecting workers' rights and removing exploitative practices is at the core of what we do at the PCA, but banning zero-hour contracts could have an unforeseen negative impact on contract workers. It is likely to push our flexible workforce into more agency working scenarios, where they could risk being exploited by the unregulated umbrella company market.
Despite there being several accrediting organisations within the sector, tax evasion remains a significant issue, with HMRC publishing a live list of known fraudulent schemes. Workers are frequently unaware that illegal activity is taking place until they receive an unpaid tax bill from HMRC.
The government needs to understand the increased cost and risk this move could bring. Creating more opportunity for tax avoidance will not help to fill the public finance black hole.
Contractors across all sectors are usually unaware of the real risk that they could be exploited should they come on the books of an umbrella company that is taking advantage of its employees.
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