Collective Regulation: Contractors, have your say on umbrella companies on July 12th

The timing couldn’t really be better. In the week that the government showed it has more questions than answers about umbrella company regulation, we’re about to unveil our latest development – Collective Regulation, a framework for assessing what kind of regulatory solutions are appropriate per key sector. But contractors, we’d like your help, writes Keith Rosser, chair of JobsAware.

Putting the ‘Collective’ in Collective Regulation

The thing is that to be effective, the ‘Collective’ in Collective Regulation must have businesses, government, but thirdly and crucially, workers to be involved.

My belief is that if the UK is to lead the way in creating modern labour markets that are flexible and competitive, fair but safe, collaboration between the voices of worker, business and government is the only credible way forward. 

Your July 12th invitation…

In the past however, the voice of freelancers and contractors has often been missing. That will change in the shape a virtual roundtable event for contractors which I’m hosting. The aim is for you and other ContractorUK readers to come forward and give your opinions. First up, it’s the umbrella sector which we’d love your input on. The roundtable is on Wednesday July 12th 2023 and please take this article as your invitation to attend.

To reassure you that this isn’t a flash in the pan, our approach to adopting smarter regulation -- Collective Regulation -- just got endorsed by tech minister Paul Scully MP. And business minister Kevin Hollinrake MP has agreed the process of Collective Regulation will first be applied in the umbrella company market, to see which approach out of the government’s proposed three options the process will come down in favour of. We can only do that, of course, with your input on July 12th.

So please join in next month and register your spot here. With your help, we can properly answer the seminal question – ‘What is the most appropriate regulatory solution for the umbrella sector?’

Jobs market changes are conducive to freelance contractors

If you hadn’t noticed, the UK labour market is changing rapidly. It’s being influenced by advances in technology that have enabled trends such as borderless recruitment, ever-fragmenting supply chains, platform-work, flexible working and remote working.

All the time these new realities are posing new challenges and opportunities, with few more agile to take advantage of the latter than freelance contractors.

As to the challenges in regulating modern markets, from what I’m seeing they are becoming more complex. My read is that our political parties understand the need to future-proof labour market regulation. By no means is it simple, however. The best approach, if we are to respond proportionately and without sticking plasters, is Collective Regulation.

Four tenets of Collective Regulation

I want to share with your four tenets of this new framework (developed with an Open University Professor), so its purposes are clear.

1. Greater awareness of rights and responsibilities 

Alongside designing appropriate regulatory measures, Collective Regulation will drive awareness and education of workers and business rights and responsibilities.

To that end, it needs to raise awareness throughout the ecosystem to be effective.

2. Higher baseline standards 

Greater awareness of rights and responsibilities will also lead to intolerance of lack of standards or intentional non-compliance. This positive effect will be especially beneficial for the umbrella company sector where (as the consultation indicates), there isn’t an overnight legislative fix.

3. Levelling the playing field for ‘good business’ 

The methodology of Collective Regulation will incentivise good business practice as it evolves, with a focus being on adequate baseline standards. 

And there should be positive public reputation associated with adherence to standards that protect rights and enforce responsibilities, without being overbearing.

4. A cost-effective enforcement system 

As the July 12th webinar will demonstrate, Collective Regulation is about hearing everyone’s voice, leading to better insight into good and bad behaviours, allowing enforcement bodies to access intelligence, assess risks, and target and prioritise effective interventions. 

Finally, don’t be on mute

Oh, and if you need further context about what you’re being invited to be part of, the UK’s first All Party Parliamentary Group on Modernising Employment will make Collective Regulation a key item at its inaugural meeting on July 10th. As I’m sure this new APPG chaired by Labour MP Emma Hardy will hear, initiatives such as hers – and mine – project the worker voice towards the heart of policymaking. Look forward to hearing yours on the 12th!