Portsmouth Worker Smashes ‘Parasitic’ Payroll Scheme
Russ Blakely, a pipe fitter from Portsmouth, has taken down a dodgy employment setup exploiting construction workers. While working at Broadmoor Hospital, Russ wasn’t employed by the NHS but trapped in the so-called “umbrella system” – forced through layers of agencies and payroll firms that skim off his hard-earned cash.
‘Umbrella System’ Rips Workers Off
Russ, 57, was hired by On-Site Recruitment Solutions but told his wages had to come via payroll company Heritage Solutions 1 Limited. Heritage nicked a massive £18 a week just to process his pay. On top of that, his employer denied him holiday pay, pension contributions, and sick pay — while unlawfully deducting fees and employer national insurance contributions.
“There are four companies between me and the NHS hospital,” Russ told the Daily Mirror. “All of them take a cut of taxpayer money. What value are they adding?”
Landmark Tribunal Victory Sets Legal Precedent
Russ appealed a dodgy Employment Tribunal ruling that claimed he was self-employed and not entitled to worker rights. The Employment Appeal Tribunal disagreed, confirming that despite the contract, Russ worked under his employer’s control and should have been classified as a worker.
The ruling slams the “bogus self-employment” tactics used to deny workers their rights.
Unite Union Leads the Charge
Britain’s biggest union, Unite, backed Russ in a landmark battle against payroll firms exploiting construction workers. Assistant General Secretary Howard Beckett called it “a groundbreaking victory” in the fight against wage theft and sham self-employment.
Russ praised Unite and Thompsons Solicitors for their crucial support. “I couldn’t have done this on my own,” he said.
Compensation around £2,500 is expected but will be finalised at a later hearing. This victory could shake up the entire construction industry’s dodgy pay schemes.
