Regulation of umbrella companies

Implementation date: Expected 2027

Umbrella companies will be regulated by the Fair Work Agency. 

On 4 March 2025, the Government issued its response to a consultation launched by the previous Government: Tackling non-compliance in the umbrella company market. The consultation sought views on "the most effective way to address issues of tax and employment rights non-compliance by umbrella companies".

In its response, the Government confirms that it intends to legislate to define umbrella companies and to allow for their regulation through an amendment to the Employment Rights Bill. 

The Government has confirmed, in Implementing the Employment Rights Bill: Our roadmap for delivering change, that these measures will take effect in 2027.