Umbrella Company Policy

This policy sets out how Recruitment Direct UK Ltd (RD1) pays its temporary and contract workers, and confirms RD1's position on umbrella companies and other payment intermediaries.

RD1 does not use umbrella companies, mini umbrella companies, personal service companies or any other payment intermediary to engage or pay workers.

Every temporary and contract worker supplied by RD1 is paid in one of two ways:

• PAYE: the worker is paid through RD1's own payroll, with income tax and National Insurance deducted at source and holiday pay provided in line with our National Minimum Wage & Holiday Pay Compliance Policy.
• CIS: construction workers who are genuinely self-employed are engaged directly by RD1 under the Construction Industry Scheme, with CIS deductions made and paid to HMRC.

No third party sits between RD1 and the worker in the payment chain.

Paying workers directly removes the risks linked to non-compliant umbrella arrangements, mini umbrella company fraud and disguised remuneration schemes. It gives clients a short, transparent supply chain and gives workers clear, accurate pay.

Every worker receives a Key Information Document before their first assignment, setting out their pay rate, how they are paid and any deductions, in line with the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (as amended).

If a worker asks to be paid through an umbrella company or their own limited company, RD1 will decline and offer engagement via PAYE, or via CIS where the worker is eligible.

If RD1 ever changes this position, this policy will be updated first, and full due diligence in line with HMRC guidance will be completed before any intermediary is used.

The Directors are responsible for this policy and for ensuring all workers are paid via PAYE or CIS only.