Select committee: Business, Innovation, Science and Trade Committee

Recommendation 7

3rd Report - Make Work Pay: Employment Rights Bill Published 3 Mar 2025 Addressed to Department for Business and Trade
Recommendation (the committee's words)
While compliant umbrella companies can have many benefits to workers, there have been longstanding concerns across governments that the lack of regulation in the umbrella company market can lead to exploitative working practices. The evidence is overwhelming of the need for the Government to properly regulate umbrella companies. The Committee therefore asks the Government, in response to this report, to set out how it plans to regulate the sector and tackle non-compliance in the umbrella market. (Recommendation, Paragraph 43)

From: Business, Innovation, Science and Trade Committee, 3rd Report - Make Work Pay: Employment Rights Bill (HC 370), 3 March 2025

Government response

The government responded to the whole report on 22 May 2025 (deadline 3 May 2025).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government's response sets out its position on each of the Committee's 15 recommendations, largely by describing existing plans, amendments already made and consultations to come, rather than adopting the Committee's specific changes.

  • On guaranteed hours, the government says the initial reference period is "expected to be 12 weeks" and will consult on subsequent reference periods before making secondary legislation.
  • On definitions of notice and shift changes, it is "satisfied that the powers in the Bill are necessary and justified", wishing to retain flexibility. The period of short notice will not be more than seven days, as stated on the face of the Bill.
  • On employment status, it sees consulting on a simpler framework as "a longer-term goal", rather than rolling out reform alongside the Bill's commencement as the Committee recommended.
  • On umbrella companies, it agrees timely action is imperative, has introduced an amendment to the Bill, and will consult on a bespoke regulatory framework "in due course".

Read the government's response ↗ Report an error