Balfour Beatty has clarified its position on a supposed ban of umbrella companies on its Area 10 Highways Contract.
The Unite union had claimed that the contractor had banned the use of umbrella companies on the project but Balfour said the news was incorrect and based on a "misinterpretation".
The firm confirmed that the issue had been under discussion but that it isn’t even aware of whether or not umbrella companies are used on the contract, where the majority of workers are employed on PAYE.
However, it did confirm that it had agreed that it would permanently employ any agency worker who has been on the project for at least three months.
In a statement, the company said: "Balfour Beatty Mott MacDonald regularly talk to union representatives as part of our workforce engagement practices.
"We note Unite’s recent news release regarding our Highways England Area 10 contract. We are speaking to Unite to correct a misinterpretation of our recent dialogue.
"The vast majority of the Balfour Beatty Mott Macdonald workforce are PAYE.
"We can confirm that agency operatives engaged by Balfour Beatty within the Area 10 contract are usually offered permanent employment following three months’ work."
A Unite spokesperson said: "Unite will be working to ensure the company’s policy is fully complied with on other projects."