Umbrella firms accused of withholding holiday pay from contractors in BBC programme

Allegations that some umbrella companies are wrongly withholding holiday pay from contractors have surfaced this past weekend.

The BBC Money Box programme alleged that some umbrella firms – even those vetted and registered by the membership body the Freelancer and Contractor Services Association (FCSA) – are wrongly dealing with contractors.

The programme featured claims made by an anonymous contractor, “Steve”, whose comments were read by an actor on air. “Steve” also alleged that the recruitment agency had referred him to only one umbrella company and not provided him with a preferred supplier list to choose from.

He went on to say that former colleagues had had difficulties obtaining from their umbrella companies the illustrations, or breakouts, of deductions and distribution of their pay. 

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