IOR Partners with Eversheds to Launch Safe Umbrella Audit Scheme

The Institute of Recruiters (IOR) recently partnered with international law firm, Eversheds, to launch a brand new audit scheme Safe Umbrella. Safe Umbrella’s objective it to help recruiters choose a “safe umbrella” partner—or a company that acts as employer to agency contractors working on a fixed-term contract assignment.

According to the IOR, if a recruitment company works with an unaudited umbrella partner, it could be liable for unforeseen costs due to poor practices by the umbrella. This practice could also put recruitment contractors at risk of not being paid properly or on time.

Using the Safe Umbrella audit will assure recruiters that an umbrella carrying the new Safe Umbrella badge has been vetted in all aspects of the Umbrella PAYE model. According to IOR Director General, Azmat Mohammed, this is “crucial in the midst of so much risky and poor practice undertaken by a number of umbrella companies.”

“This is a high-quality audit being introduced to the market that safeguards recruiters,” Mohammed explains. “Legislation is changing all the time and recruiters cannot be without risk if they use an umbrella that turns out to be adopting illegal or bad practices. You really don’t want to have to worry about liability from a third party’s actions so it’s better to be safe from the outset.”

Features of the scheme include:

• Independent—No employees of umbrella companies are involved in this scheme, ensuring it’s completely independent.

• Transparent—Offers full details to recruiters of what has been audited.

• Wide-range—Audit covers a range of areas from corporation and payroll tax to Vat and work time regulations

For more information, visit http://www.theior.org.uk/safe-umbrella-independent-audit-scheme.