Construction workers are set to picket a Yorkshire firm involved in forcing workers to be falsely “self-employed” and denied benefits such as pensions and paid holiday time-off.

Activists with construction union Ucatt will target Hudson Contracts, which they say is the largest payroll company operating in the industry.

Rather than find work for construction workers, a payroll company’s sole function is to place workers on a self-employed contract and administer their pay.

As the workers are officially self-employed they have no employment rights and can be dismissed without warning.

Ucatt says most workers are falsely self-employed so that employers can avoid paying national insurance of 13.8 per cent.

Rob Morris, regional secretary for Ucatt Yorkshire region, said the system caused misery for construction workers and their families.

Union activists will picket the company’s offices in Bridlington in East Yorkshire tomorrow from 10am.