NES Group has signed an exclusive deal with umbrella provider Parasol to provide contractors with a range of services such as contracts of employment, professional indemnity insurance, accident and sickness benefits, as well as payroll services.

Stephen Rookes, commercial director of NES Group, which supplies technical, engineering and IT staff told Recruiter that there were significant advantages to the tie-up for all concerned.

"It gives NES, the individual contractor, and the client the comfort that they are fully employed, he said. "It also gave workers more employment rights than enjoyed by the self-employed."

Contractors also "got paid quicker" than if they had their own personal service companies said Rookes. "Individuals don't need to spend time setting up limited companies, while the agency no longer had to carry out administrative tasks such as getting workers' bank details,' Rookes explained.

Rookes said that the alliance also removed any concerns that the agency could be hit by the debt transfer provisions of the Managed Service Company (MSC) legislation, because as an umbrella company Parasol was exempt. The two companies aim to sign up more than 500 contractors to the alliance in the next 12 months.