APSCo voices support for Umbrella Companies

Latest News from APSCo (Published 21st May)

The Association of Professional Staffing Companies (APSCo) has voiced support for its member umbrella companies following comments from Adrian Marlowe, the Managing Director of Lawspeed and Chairman of the Association of Recruitment Consultancies (ARC). His comments, published in an article last week, suggested that some umbrella companies are competing or planning to compete with recruiters by offering placement services, comments which APSCo has described as non-specific, unfounded and potentially damaging.

“Following the publication of Mr Marlowe’s comments, we canvassed all our affiliate members and the response was overwhelming”, said APSCo Head of External Relations, Samantha Hurley. “We received over 30 responses from umbrella providers all confirming that they have absolutely no intention, now or in the foreseeable future of competing with their recruitment company clients by providing such services. While it is true that some of our members have over-arching employment contracts which require them to help contractors look for work, this activity goes no further than helping them review job boards, and contacting previous recruitment companies they have worked with.“

“APSCo affiliated umbrella companies have extremely good and trusting business relationships with their recruitment business clients, and they have expressed deep concern about the comments made by Mr Marlowe which appear to be without foundation in the professional sector and which can only serve to fuel potential bad publicity and panic – a situation which is extremely unhelpful to the industry as a whole.”

“As far as APSCo is concerned its umbrella company members provide a valuable and professional service to both candidates and recruitment businesses. We found absolutely no evidence of umbrella companies breaching the confidentiality of their arrangements with recruitment firms, or of them deliberately setting themselves up in competition with their recruitment company clients.”