However, UCATT are calling on the HMRC to ensure that this initiative is not just a one off and that other sites are targeted in the future. UCATT believes that in excess of 400,000 workers are currently falsely self-employed in the construction industry.
The HMRC announced that they would be investigating employment status abuses, other abuses relating to the Construction Industry Scheme (CIS) and payments below the National Minimum Wage, across all Olympic sites.
George Guy, Acting General Secretary of UCATT, said: "The decision to crackdown on false self-employment which is endemic in the construction industry is warmly welcomed. This is certainly not a problem limited to the Olympics and it is essential that this initiative is the first step in cracking down on false self-employment throughout the construction industry."
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UCATT believes that there is likely to be a greater level of false self-employment on the Olympic Village compared to the Olympic Park. In 2007 construction unions, led by UCATT and the Olympic Delivery Authority signed a Memorandum of Agreement, which stated: "In order that the best employment practice is achieved the parties to the agreement commit to the ethos of a directly employed workforce."
Despite lobbying from UCATT the Memorandum of Agreement was not extended to the Olympic Village, resulting in a more casualised approach to employment on the site.
False self-employment occurs when workers are officially registered as self-employed, but have all the characteristics of an employee. By making workers false self-employed, companies avoid paying employers national insurance contributions of 13.8 per cent.
Falsely self-employed workers do not receive holiday pay, sick pay, pensions or other benefits and are denied even the most basic employment rights, which can result in them being sacked at a moment’s notice.
Mr Guy, added: "False self-employment corrupts every part of the construction industry. In the past companies have introduced false self-employment in the belief that they would be able to get away with it. This announcement from the HMRC demonstrates that this is no longer the case."
There are currently in the region of 10,000 construction workers operating on the Olympic Park and Olympic Village sites.
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