Construction union UCATT will be demonstrating outside of the Middlesbrough Sports Village Site in protest at construction workers being forced to work through umbrella companies.
According to UCATT, being paid through an umbrella company is costing workers up to £100 per week.
The site where the protest will take place is being built by Wilmott Dixon, which according to UCATT uses umbrella company labour.
The union said: “Tens of thousands of construction workers have been forced to work via umbrella companies since April 2014, when the government introduced new measures that required workers to be paid via PAYE. By forcing workers to be paid via an umbrella company, neither the agency, contractor nor the payroll company are liable for increased costs.
“Instead, the additional costs are met by the worker, who has to pay both employee and employer national insurance contributions - over 25% of eligible pay.”
It added that payslips are too complex and that workers have reported they do not understand how their pay is being calculated.
Northern regional secretary Denis Doody said: “Workers are being ripped off by the umbrella company con-trick and they are now struggling to make ends meet. It is disgraceful how employers can get away with exploiting construction workers in this way.
“Workers are given no choice: either they work via an umbrella company or they don’t work at all. The government must step in and crack down on this exploitation.”
Hundreds of construction workers will be demonstrating in Westminster on Wednesday, 26 November to protest at being paid through umbrella companies.
General secretary Steve Murphy said: “The government needs to take urgent action to crack down on this tax misery, which is resulting in workers struggling to make ends meet while employers are feathering their nests.”