Compliance Report 2023

The voice for the global staffing industry
www.theglobalrecruiter.com
COMPLIANCE FIRST
Accountability and Transparency needed
Act now
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2
WELCOME
SIMON KENT
EDITOR
Compliance in the recruitment industry operates on two levels.
There’s the broad brush stroke level – the Criminal Justice
Act, IR35, Right to Work – but then there’s a more detailed
level beneath these challenges. It’s the point where suggested
solutions and models need to be subject to close scrutiny in
order to be seen to be compliant. Where the everyday work of
consultants and recruitment businesses must still be correct in
order to deliver a safer, low risk service. Achieving compli-ance
on both these levels is certainly not easy, but it is something
recruiters do every day.
The act of recruitment itself could be see to operate in a similar

way. There’s the broad brush strokes of understanding and
addressing market conditions, opportunities in terms of skill
shortages and demand for workers. And then at the same time
there’s the need to take a personal, almost granular approach –
delivering a service which clients can’t get elsewhere and which
your recruit-ment business alone can deliver.
In this issue of The Global Recruiter we continue our Compliance

First series, we also feature the story of a remarkable nursing
recruiter who changed the game in order to bring much needed
qualified staff to the health sector. All our stories point to a
thriving industry, one which places clients first and seeks to
offer a consistent and long term solution to talent needs. It’s also
an industry which progresses through sharing and discussing
ideas. The Global Recruiter does this through the content of this
e-magazine and through our ongoing series of Recruitment Live
discussions. So if there’s anything you’d like to discuss or get off
your chest, please do get in touch. n
3
CONTENTS
4 IR35 & M O RE: ACT NOW
8 IR35 & M O RE: COMPLIANCE RIGHT NOW
13 IR35 & M O RE: THE UMBRELLA FACTOR
17 IR35 & M O RE: PROTECT & SURVIVE
21 IR35 & M O RE: THE IR35 EFFECT
25 IR35 & M O RE: DON’T SAY ‘INSIDE IR35’
27 IR35 & M O RE: RIGHT HERE, RIGHT NOW
31 RIGHT TO WORK: ALL RIGHT TO WORK?
37 RIGHT TO WORK: ENHANCE COMPLIANCE WITH
DIGITAL RIGHT TO WORK CHECKS
41 RIGHT TO WORK: GETTING THE RIGHT RIGHTS
45 RIGHT TO WORK: PRE-EMPLOYMENT SCREENING
TECHNOLOGY: A MUST-HAVE FOR RECRUITERS
48 REFORM REQUIRED: REFORMS FOR RECRUITMENT
53 REFORM REQUIRED: THE DEBT YOU TAKE
56 REFORM REQUIRED: THE COST OF SUPPLY
61 REFORM REQUIRED: DOES THE REST OF THE
WORLD HAVE A SOLUTION TO THE UK’S FLAWED
UMBRELLA SYSTEM?
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gary@theglobalrecruiter.com leigh@theglobalrecruiter.com
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lucian@theglobalrecruiter.com
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ISSN 2049-3401
RETURN TO CONTENTS I R35 & M O RE 4
ACT NOW
Crawford Temple, CEO and founder
of Professional Passport, calls on
recruiters to take note of the Criminal
Finances Act.
Recruiters play an important role in the job market, connecting employers with potential
employees. However, with this important role comes a responsibility to ensure that their
actions do not facilitate illegal activities.
The Criminal Finances Act was introduced in 2017 with the intention of increasing
accountability and transparency and contains far-reaching provisions that impact
recruiters. The most significant provision is the “failure to prevent the facilitation of
tax evasion”. Essentially, this means that an evasion”. Essentially, this means that an
organisation, recruitment agency or contractor will be guilty of a criminal offence if an
employee or associate facilitates tax evasion for a client, even if senior management
was unaware of this transaction.
Failure to comply with the legislation can result in severe financial penalties, reputational
damage and even criminal charges. Therefore, recruiters must take proactive steps to
identify potential risks, implement due diligence potential risks, implement due diligence
processes and provide training and awareness to their staff members.
The off-payroll legislation has seen a rise in the number of disguised remuneration
schemes masquerading as umbrella companies. It means that it has never been more
important for recruiters to be alert to the antics of tax avoidance schemes and recruiters
have a responsibility to operate ethically and legally. >
Red flags to be aware of: What can recruiters do?

l Are you seeing a significant increase l Choose an accredited provider – all
in the number of contractors moving to recruitment firms should take action to
one particular so-called “umbrella” firm?A ensure that their consultants only refer
plethora of workers moving around should contractors to firms on a carefully vetted
raise alarm bells. Ask questions and carry PSL.
out checks.
l Put in place effective policies and
l Be alert to the two payment pay trick. procedures to deal with any incentives
With a rise in tax avoidance and disguised that their staff might be offered by
remuneration schemes, recruiters and intermediaries in exchange for referring
contractors need to be on their guard contractors to them.
and be aware and wary of any provider
offering them two payments for each l This could include things like requiring
pay run. Generally, the first payment will all employees to sign a declaration that
be applied at National Minimum Wage they will not engage in tax evasion and
and taxed through PAYE and the second setting up a whistleblowing policy so that
will have no tax applied and could be employees can report any suspected
called a variety of names such as an tax evasion. Moreover, if any recruiter is
advance or a loan. These offerings lure paid an incentive to introduce contractors
the unsuspecting in with the promise of to a tax avoidance scheme, they are
much higher-thanexpected returns, often also breaking GDPR rules by sharing
over 80 per cent but don’t be fooled. When confidential information.
these anomalies are discovered by HMRC
it could be the contractor, who has to pay l Report any suspected tax evasion
the missing tax that is owed. to HMRC.This is important as it allows
HMRC to investigate the matter and take
action if necessary. >
If a recruitment agency is found guilty of an offence under the CFA, it could face a fine
of up to £250,000. In addition, the directors of the agency could be disqualified from
being directors of a company.
No firm can afford to turn a blind eye to tax evasion practices that might be
taking place within their organisation. A business will only have a defence against
prosecution if it can show it has demonstrable adequate prevention procedures in
place.
Although it is yet more red tape for compliant businesses to contend with, the Criminal
Finances Act exists to stamp out dubious Finances Act exists to stamp out dubious
and unethical practices and goes some way towards levelling the playing field for
everyone.
Exemplary employment practice is essential throughout the whole recruitment

supply chain and compliance should be at the heart of every recruitment agency and
embedded in its company culture as a priority. Compliance should not be a back-
office function and clear policies, processes and qualified staff on board are critical to
operating compliantly. n
“Although it is yet more red tape for compliant

businesses to contend with, the Criminal Finances Act
exists to stamp out dubious and unethical practices and
goes some way towards levelling the playing field for
everyone.”
COMPLIANCE
RIGHT NOW
Supply Side: Is my agency at risk
from the activites of my umbrella
PSL and how di I Check?
Let’s begin with a simple question:
“How do I conduct due

diligence on the umbrella
companies that my agency
uses?” One question does however drive to the
heart of the issue;
In what should be a straightforward answer, from
speaking to, and working with, agencies over many “Where does the liability for my agency
years, the answer isn’t always common. originate when using outsourced payroll
providers and Umbrella Companies?”
For example, how frequently should you audit; how
can an audit on day one secure the supply chain The answer: Most frequently, it originates
on day two; how do I know the umbrella is being from how payroll is processed. >
honest with their answers? The list continues.
The answer to our question will be published compliance framework, it is time to use
Monday the 10th of July at 10 AM on our technology to protect yourself.
LinkedIn Account
How is this done?
https://www.linkedin.com/company/saferec
Consider SafeRec Certified Umbrella
By understanding, assessing and auditing Companies – The future of Payroll Compliance
payroll processing you are able to account
for risks such as POTAS, The Criminal Fi- SafeRec is a UK-based compliance and
nances Act as well as the potential future technology company that has developed an
implementation of third-party debt transfer ecosystem for businesses operating in the
alerted to in the recent (see link at end). In temporary worker industry.
essence, the only way to ensure that your
agency and your clients minimise liability is Building on this ecosystem, on 12th June,
to audit your Umbrella’s Payroll in real-time. SafeRec launched the First Real-Time
Umbrella Company Certification designed
Regrettably, whilst reviewing your PSL’s with Recruitment Agencies in mind.
processes and policies is extremely vital and
plays an important part, it is not sufficient SafeRec achieves this by mandating
to establishing complete assurance of the certain procedures which all umbrellas
payroll processes. In the modern world, with that seek the SafeRec Certification must
AI tools that can instantly write contracts adhere to. By engaging with these certified
and policies, it has become easier to pass Umbrella Companies, your agency is offered
these standalone checks thereby giving you transparency, certainty, tax mitigation – at no
a false impression of compliance. As always, cost. >
when technology advances to outpace your
“The work that SafeRec is doing for the industry is ground-

breaking. Manual verification will always play a part in
securing compliance and protection for agencies and
hirers, but the introduction of a future-proof tech platform
revolutionises the speed, accuracy and scalability of
compliance.” Rhys Thomas, MD of WTT Legal
How is this achieved? Why is the solution designed for

Agencies?
SafeRec has developed a proprietary
technology platform to forensically audit Sebastien Sauca, the Co-founder and
Umbrella Companies by constantly verifying CEO of SafeRec and former Sales Director
each and every payroll processed, all of a temp recruitment agency, decided
designed with agencies and their clients in to design a solution after noticing that
mind. organisations conducting compliance
checks could not overcome 2 fundamental
To be Certified, each Umbrella Company hurdles for agencies to fully trust them:
needs to embrace transparency and
forensic auditing at five different levels l All existing compliance checking
that allows no room for anything other than processes are between the auditor/
compliant and ethical practices for your assessor and the Umbrella Company;
supply chain: Results are never reviewable by
recruitment agencies or workers.
l All payslips and statements processed
by a certified umbrella company must l Tax liability for agencies and workers
be audited by SafeRec (Umbrella PAYE; originate from how payroll is operated.
CIS; PEO... no exceptions l Therefore, what is currently being
l SafeRec must obtain all payslips reviewed/assessed/audited does not
and RTIs at source so they can’t be include areas where the potential tax
altered. (e.g payslips and reconciliation liability originates.
statement are received directly from the
Payroll software via API), The natural step was to design a
l All audited documents are cross solution that was fully automated
referenced with RTI Reports sent to and where agencies could check at
HMRC each month. anytime, what has been audited, how
l The umbrella must undergo an and have access to the result details.
extensive compliance review by
SafeRec’s partners, WTT Legal, a WTT continues to play an integral part
regulated Law Firm, specialising in in the development of the certification
the temporary worker industry. Here process, with their own experience of
all policies, contracts, background what the agencies they work with want
company data and control systems are to see. Rhys Thomas, MD of WTT Legal
audited up front and again at periodic commented “The work that SafeRec is
intervals over time. doing for the industry is ground-breaking.
l All of the umbrella company’s agency Manual verification will always play a part
clients (including you!) receive a monthly in securing compliance and protection for
report where they can transparently agencies and hirers, but the introduction of
review what has been audited. a future-proof tech platform revolutionises
the speed, accuracy and scalability of
By following this process, SafeRec ensures compliance. SafeRec, like us, are motivated
that there is no room for Tax Avoidance to see real and sustainable change in the
or unethical practices. Your agency will industry and the developments that are
receive a report confirming the same. planned for the certification are profound”. >
For more information about

SafeRec: https://saferec.co.uk/
For more information about WTT

Legal: https://wttgroup.co.uk/
List of SafeRec Certified Umbrella

Companies: https://saferec.co.uk/
certified-umbrellas
Link to the government

consultation: “Tackling non
compliance in the Umbrella
Company Market”
A certification that ensures compliance Imagine if the report was sent automatically to
rather than just promising it the email address of your choice, without any
need for action on your part.
Imagine a world where…
More importantly, imagine if, as for all certifications,
When you use a certified umbrella company, the the cost was borne by the organisation being
certification body sends you a breakdown of all certified (the umbrella) and not its client (you!)
audits conducted on payslips and reconciliation
statements for the candidates they paid. This is exactly what happens when you work
with SafeRec Certified Umbrella Companies. n
Imagine if all audits were cross-referenced with
RTIs sent to HMRC before you received the
report.
THE UMBRELLA
FACTOR
Tania Bowers, Global Public Policy Director,
APSCo discusses how non-compliance in
the umbrella market is being addressed.
Non-compliance across the umbrella market is a growing concern for the recruitment
sector. Whilst umbrella companies perform a valuable role in the supply chain,
unfortunately, not all operate compliantly. For that reason, APSCo has long called
for regulation of the umbrella sector. We therefore welcome the HM Treasury (HMT),
HM Revenue & Customs (HMRC) and the Department for Business & Trade (DBT)
consultation on how to better regulate, and ultimately prevent, umbrella non-compliance.
But what does this mean for recruitment businesses?
The consultation
While it is a complex issue, as a summary, the consultation proposes regulation as a
two-stage process:
l Defining what an umbrella company is

l Determining the minimum legislative requirements of umbrella companies
The initial stage will be fundamental to driving any changes. There is no current
statutory definition of these businesses; HMRC describe them as a company that
employs temporary workers to work for different end clients. >
There are advantages and disadvantages to both definitions and, at time of writing,
insight from those across the supply chain is being sought to ensure an informed
decision is made. However, it is clear that the definition must be sufficiently broad to
capture the nuanced roles the umbrella companies play in the supply chain.
We welcome the government’s proposal to regulate umbrella companies through

expanding the remit of the EAS, which already regulates recruitment companies,
provided that the EAS have sufficient resources for this additional remit. We believe
that the EAS should adopt a reactive and proactive approach to enforcement in the
umbrella sector.
While the definition of umbrella companies will dictate how regulation is introduced,
the consultation has outlined how the government plans to tackle non-compliance
– and unfortunately, there are some recommendations that will be of concern for
recruiters.
Regulation and recruitment firms

Looking at the detail that is currently available, the focus on defining an umbrella
company into law is something that needs further clarity. There are a range of nuances
that impact the role these firms play in the supply chain. Although the consultation does
highlight plans to define in legislation how recruitment businesses can engage with a
worker, the information shared suggests that this is largely the existing models of supply
being written into legislation. We are however pleased to see that the Government
is looking to set statutory compliance standards which are in line with our initial
recommendations last year. >
There are also three strategic options proposed for preventing tax non-compliance
within the umbrella company market aimed at changing the incentives and behaviours
in the temporary labour market.
Option one mandating due diligence; due diligence is already a part of most staffing
firms’ processes, often requiring an umbrella to be audited by an accrediting body. In
order to be effective, the mandated process would need to be prescriptive as to exactly
what a thorough due diligence process would look like.
We are concerned with option two, the potential for the transfer of debt to the recruitment
business (where the umbrella company is unable to discharge the tax liability) and the
possibility of the staffing firm being deemed the employer for tax purposes akin to the
IR35 regulation which would certainly be a concern for recruitment businesses.
Just as we highlighted previously with off-payroll working rules where unpaid duties
are passed on to recruitment businesses, this option would be unjust for the staffing
sector and would put an unfair amount of financial burden on firms. In many instances,
recruiters would be facing financial penalties for actions or decisions that they have had
little to no control over.
Aside from this, we believe that this approach would in fact embolden non-compliant
umbrella companies, rather than discourage them. If the risk and burden are passed
on to others in the supply chain, there is no reason for these firms to change tact.
While we are working with our members to inform policymakers of this oversight in the
plans, should this option be pursued, we may see recruitment businesses choosing not
to engage umbrella companies in their supply chains in view of the risk of a tax debt
transfer.
Option three may be a practical solution to address the risk to the recruitment business of
a non-compliant umbrella company and the transfer of the tax liability to the recruitment
business. However, it somewhat defeats the object of why most recruitment businesses
engage with an umbrella company, which is to perform the payroll function. It may also
cause confusion where the worker has a deemed employer for tax purposes and a
different employer for employment rights. Further, where the recruitment business is
responsible for tax purposes there may be limited benefits for engaging an umbrella
company in the supply chain. >
Recruitment company risk

Note that in all of the above, the onus, risk and responsibility lies with the recruitment
firm, not the umbrella company, an issue which we believe needs to be addressed.
If the non-compliance lies with umbrellas, then action should be taken against these
businesses, not recruiters.
The consultation also addresses the employment allowance and flat rate scheme which
are simple to use and rely on self-assessment making them more easily subject to
abuse by mini umbrella companies: making it mandatory for a UK director to be in place
to be eligible for the employment allowance. These proposed measures, in particular
the requirement for a UK director to be in place, are a step in the right direction towards
transparency and accountability.
The actions of a few unscrupulous umbrella firms have already impacted the reputation
of the sector. We don’t want to see this extend into the financial, reputational and
operational risks for recruitment businesses where they have no control over the actions
of the umbrella company.
A compliant future?
Whatever the final outcome of the consultation, it is a promising sign that HMRC is
taking a carefully considered approach to an issue which – given the significant number
of initial responses to the consultation last year – is a prime concern for the recruitment
supply chain. It’s clear that the Government is being ambitious in its plans to tackle the
unscrupulous behaviour of a few rogue umbrella companies, but any such changes
should not be to the detriment of recruitment businesses. n
PROTECT &
SURVIVE
Compliance First: Sebastien Sauca,
CEO & Co-Founder of SafeRec.co.uk
views the Criminal Finances Act and
Third-Party Debt Transfer for recruitment
agencies.
Five years have passed since the

implementation of the Criminal Finances
Act, yet it remains challenging for many
agencies to understand the true impact of
its provisions. More and more agencies
are seeking to grapple with their own
compliance policies to account for the act,
but the prospect of a third-party debt transfer,
as outlined in the government’s recent
consultation, makes it essential for business
owners, senior managers, and shareholders
to truly comprehend the reality behind
commonly heard terms such as “Unlimited
Fines,” “Reputational Damage,” and “Strict
Liabilities.”
Risks for your agency

There is no doubt that the introduction
of the off-payroll working rules in 2021
significantly changed the landscape for both
the temporary recruitment and umbrella
industries. Reactive blanket banning of PSCs
by hirers, pushed an entire market towards
alternative models, including the unintended
consequences- avoidance vehicles.
Recruitment agencies had to make

adjustments and consider either processing
payroll internally – a cumbersome task
– or engaging with third-party payroll
software. Options such as Umbrella PAYE,
PEO, Payroll Bureau, and Joint Ventures
all come with their own advantages and
disadvantages, particularly as each adds a
new layer to the supply chain that must be
vetted and audited on an ongoing basis.
1. Your current legislative risks
As a recruitment business or an end client,
supply chain transparency must take into
consideration;
l The intermediary’s legislation

(Off-Payroll working)
l POTAS (Promoters of Tax
Avoidance Schemes)
l The Criminal Finances Act 2017
These legislative provisions were

implemented, in part, to ensure that
companies such as recruitment agencies
take a more active role in preventing tax
evasion and the promotion of mass marketed
tax avoidance schemes. No longer is turning
a blind eye an acceptable practice and it is
incumbent on agencies to play an active role
in mitigating these practices from their supply
chain. Understanding the operations of your
suppliers is therefore crucial to avoiding
unlimited penalties. >
The requirements here are more extensive than the space available in this short
article. Therefore, over the coming weeks, we will be publishing more focussed
summaries on the provisions above and the practical steps you can take to mitigate
risk for your business.
2. Your potential risks in the future

You may have noticed that the government has released a new consultation on how
they intend to regulate umbrella companies. Within this, they make it clear that they
are exploring third-party debt transfer as a solution.
Third-party debt transfer means that your agency could be responsible for the
debts of a non-compliant umbrella company if the money cannot be recovered from
the umbrella itself. In short, your agency can become liable for the actions of the
umbrellas on your PSL, if they are found to be non-compliant, thereby extending the
provisions already in place under the Criminal Finances Act.
It goes without saying that in the coming months (not years), recruitment agencies
will face greater pressure to take action. As this becomes more reaching, we will
continue to see M&A activity focus on these issues. Therefore, if you want to protect
the valuation of your company, compliance and risk mitigation in your supply chain
is imperative. The level of risk will soon reach a critical threshold. Risk management
must now be an essential part of every good entrepreneur’s manual and BAU for
agencies and end-hirers operating in this space.
3. Sustainable options for resolving Tax liability

It sounds like only bad news, but don’t worry, there is light at the end of the tunnel.
Technological advancements offer viable options, as recognised by the government in
their most recent consultation: >
“The government is aware of innovative analysis of the workers being supplied

tools available to help workers and to you by Umbrella A.
employment available to help workers and
employment businesses to assess the l Each month, Umbrella A’s RTI data
compliance of the umbrella companies with is cross-referenced with each payroll
which they contract and recognises the to ensure that they have paid the full
value that they can provide.” (Tackling non- amount of PAYE.
compliance in the umbrella company market l As part of the reporting you are able
Consultation, June 2023). to independently verify that all workers
supplied to you via the umbrella
The development of new technologies are included in the audit, meaning
offering agencies the possibility to work with avoidance and mini-umbrella activity
Umbrella Companies that are audited in cannot exist in the supply chain.
realUmbrella Companies that are audited
in realtime on each payroll, while providing l Umbrella A’s processes, policies
an automatic audit report to recruitment and contracts are reviewed by WTT
businesses is without a doubt the future and Legal, on an ongoing basis, to seek
the way forward. The world where Umbrella indicators of avoidance and flags of
Companies will prove in real time that they non-compliance.
are compliant is the only way for an agency
to trust their supply chain and will allow 4. What should you do now?
them to refocus 100% of their resources on
growing their business. Explore your options and review your
strategy to audit Umbrella Companies.
The most recent and popular example is However, proceed with caution. Compliance
the launch of a Certification for Umbrella has become a buzzword in 2023, and
Companies where Certified Umbrellas many organisations have emerged
are audited in real-time by SafeRec. The offering to audit, review, and assess your
important ways in which the process umbrella audit, review, and assess your
mitigates risk for agencies are as follows. umbrella providers. In some instances their
processes can be vague and lacking in
For the purposes of the list below, assume transparency. Whatever solution you decide
Umbrella A is on your PSL; to engage with, make sure you understand
the processes, what has been done, and
l All Umbrella A’s worker’s payslips that the results of the conducted activities
and statements are audited in real- are transparently communicated to you. The
time, on every pay run. Whether that only way to truly trust that the supply chain
be weekly or monthly, every payslip has been reviewed fully is to be able to
for every worker is audited at source verify what has been done!
directly from the Umbrella’s payroll
software. In the upcoming issue of Global Recruiter
Magazine, we will provide you with concrete
l A compliance report is then shared figures regarding the potential liability you
with both you and the worker, without may face due to non-compliance and the
the intervention of the Umbrella, to number of workers involved. n
ensure you have a truly independent
“The only way to truly trust that the supply chain has
been reviewed fully is to be able to verify what has
been done!”
I R35 & M O RE 21
THE IR35
EFFECT
Crawford Temple, CEO and founder
of Professional Passport, on how
IR35 has fuelled non-compliance in
the supply chain.
On 9th March 1999, the Inland Revenue issued a press release

(IR35) outlining the Government’s plans to clamp down on the
increasing use of one-man-band limited companies to provide
professional services to clients, where the individual was still
working in a manner akin to a traditional ‘employee’ while
enjoying the tax benefits afforded them by a corporate structure.
The Intermediaries Legislation became law in 2000 and remains
in place today. >
Fast forward 17 years to 2017 and IR35’s newer into signing up for schemes that are not
version, the off-payroll legislation, was rolled compliant and are disguised remuneration
out into the public sector and subsequently four schemes purporting to be umbrellas.
years later in 2021 to the private sector. The new
legislation would now see hirers responsible for And HMRC is not taking swift enough action to
assessing the status of its freelance workers. shut down these schemes which are allowed to
thrive. Current enforcement strategies are not
But let’s not forget that both the original and working and simply serve to incentivise non-
newer legislation around IR35 were devised to compliant offerings. HMRC holds all the data it
counter tax avoidance as the Treasury believed needs to find the perpetrators of such schemes
and still believes it is missing out on some and take action.
millions of pounds into the coffers. It is somewhat
ironic then that the very legislation that was But thankfully, today, the industry seems to be
introduced to clamp down on tax avoidance has accepting that the importance of a compliant
given rise to a proliferation of tax avoidance supply chain is critical to ensuring that the
schemes that have seen the government miss highest standards are being met. However,
out on billions of pounds that they will not get pressure continues to mount as recruiters
back. grapple with their short-term business needs
which means that some are being lured into
The introduction of the off-payroll legislation saw business opportunities that are simply illegal.
many firms blanket banning the use of limited
company contractors. This, in turn, saw many Do you smell a rat?
contractors turning to umbrella working. And,
along with the prominence of the contingent If recruitment companies see a sudden increase
workforce has come a proliferation of regulation in workers operating through a specific provider,
and legislation as policymakers seek to catch that could signal that something might be awry
up with an ever-evolving 21st-century working and should prompt recruiters to take steps to
landscape. conduct detailed checks to establish that the
provider is compliant, accredited and operating to
Sticking plaster the highest standards. Professional Passport is
happy to assist recruiters with these checks.
Over the years, a raft of legislation has been
applied ‘sticking plaster’ fashion which has failed Avoid third-party sellers and sales lead
to address the inherent issues and challenges generation companies
that the flexible working market faces. Non-
compliance and enforcement have not been Many of these firms appear to look like compliant
addressed rigorously enough so that in a businesses by fronting their offering with an
commercially competitive environment non- accreditation seal of approval. They tend to offer
compliance has won out. significant financial incentives to recruitment
consultants for introductions, regularly offering
Off-payroll working has resulted in many workers around £400 each. With umbrella charges
operating through a new structure to them, the typically equating to around £20 per week, it is
umbrella company. There are many examples difficult to understand how these large financial
where workers clearly do not understand the incentives can be offered through standard
arrangements and they have been hoodwinked compliant offerings. >
Many of the ‘high return’ models operate Professional Passport’s terms include:
significantly higher charges whilst at the same
time offering higher take-home pay for workers. l A ban on the use of third-party sellers,
Where compliant tax arrangements are used, lead generation or outsourced marketing
the take-home pay from providers will be broadly arrangements. Providers must operate using
the same, the only difference being where the their own in-house teams. Failure to adhere
charge varies, which should only result in a few to this would see a provider’s approved status
pence difference to a worker. immediately revoked.
Avoid the ‘ghost’ system l Confirmation that all income has full PAYE
applied in line with HMRC rules and none
In a ‘ghost’ system, providers seemingly operate of the following solutions are offered: Gross
compliant offerings with many workers engaged Payment Models, EDM, Pay Day by Pay Day,
by a standard umbrella-style arrangement. Mini Umbrella, Offshore Pay.
Contracts bear all the hallmarks of a compliant
offering but hide a separate offering that is only l All leads received by the accredited
offered to workers who express a desire for company must be handled by that company
higher returns. and no lead can be passed on to a third-party
organisation that has not been subject to a full
The offerings typically fail to provide workers with Professional Passport compliance review.
pay slips or other communications relating to the
breakdown of pay so that these would have to be
requested by the recruitment company directly Any breach of these terms will immediately
from the provider. The examples provided do not revoke a provider’s approved status. Market
reflect the reality of the arrangements and are intelligence is vital in stamping out non-
designed to mislead. compliance and we would urge recruiters to
contact Professional Passport so that it can
HMRC holds the appropriate data that would continue to ensure all providers are operating
make it easy to pinpoint non-compliant schemes to the highest standards of transparency and
but still it would appear that the Government is compliance.
avoiding pursuing the promoters of these corrupt
schemes and persists with what we consider We would urge recruiters to work only with
a flawed strategy of seeking recovery from the compliant partners that they trust and be wary
workers. of firms that seem to be aggressively cashing
in on new upcoming legislative changes. Don’t
Working with a compliant umbrella firm that make snap decisions, trust your instincts and if
has passed a rigorous and robust accreditation something looks or feels too good to be true then
process will give recruiters peace of mind and it probably is. n
assurance that they are operating above board.
DON’T SAY ‘INSIDE IR35’

Recruiters should be alert to the dangers of the ‘Gross Payment
Model’ says Dave Chaplin, CEO of IR35 compliance firm IR35 Shield.
The off-payroll working legislation (“OPW”), But, wrongly used, the words ‘Inside IR35’
or ‘IR35 reforms’, rolled out to the private can open the door to a legislative loophole
sector in April 2021, having already been leading to huge agency balance sheet
embedded into the public sec-tor since April exposure and risk of criminal sanctions. The
2017. We all know the common phrase: If a vulnerability occurs when rogue umbrellas
limited company contractor is ‘Inside IR35’, seek to adopt what is euphemistically called
then payments made to their limited company the ‘Gross Payment Model’. >
must be treated as employment income, just
like a salary.
Misplaced words typically signs. The client may even sue the
agency for gross negligence.
Since April 2017, recruiters have used two
words, ‘Inside IR35’, as a shortcut phrase If HMRC speaks to the umbrella company,
instead of saying, “Sorry, the client has banned the umbrella will state they were told the
limited company contractors and will only use engagement was ‘Inside IR35’ and that the client
contractors if they are on PAYE.” The practical did not give a Status Determination Statement
reality is that the parties negotiate ‘Inside IR35’ (SDS) to them or the worker. Therefore, the
engagements on that basis, and the contractor statute dictates they must pay the limited
either ends up on an agency payroll or works via company gross monies.
an umbrella.
The Status Determination Statement (SDS) is
Let’s assume the contractor has been told ‘Inside crucial.
IR35’ via email or in a recruiter advert, and the
monies for the contractor pass to an umbrella What is a Status Determination Statement
company for processing. All appears fine. But, is (SDS)?
it?
Let’s start by saying what an SDS isn’t. It isn’t the
Beware of the opportunistic umbrella words ‘Inside IR35’.
If the umbrella company does put the contractor The updated rules in April 2021 introduced
on an employment contract and correctly pays specific changes, including the Status
all taxes, there are no issues. But what if the Determination Statement (SDS), which was
umbrella decides to pay the contractor gross intended to make sure in cases where the status
monies to the contractor’s limited company, was ‘Inside IR35’, the onus for paying those
sometimes referred to as a personal service taxes passed down the supply chain to the party
company or PSC? paying the PSC.
In the latter scenario, the off-payroll legislation But, there are rules for a statement to qualify as
(“OPW”) comes into play, and the umbrella an actual SDS, requiring the following legislative
company becomes what’s referred to as the ‘fee- requirements to be met:
payer’, essentially the entity above the PSC. The
party responsible for deducting and paying the l The SDS must contain the conclusion on the
taxes to HMRC is the ‘deemed employer’. But, deemed status of the worker.
the umbrella isn’t the deemed employer because l The client must have taken ‘reasonable care’
the client has not given a Status Determination in concluding the status in the SDS.
Statement to the worker, thereby failing to trigger l The SDS must explain the reasons for the
the tax liability transition mechanism in section conclusion.
61N(5). If all three requirements are met, and if the
SDS is passed from the client to the worker,
In non-technical terms, the tax liability now sits then the 61N(5) trigger is invoked, and
with the client, who, if investigated by HMRC the fee-payer (the party paying the PSC)
and hit with a tax bill, will likely exercise the assumes liability for the tax and not the
tax indemnity clauses the recruitment agency client. >
Three routes to tax risk: No SDS, void There are four options:
SDS, or weak SDS
l The client or agency could remain the
There are three routes rogue umbrellas can “deemed employer, “ deduct the taxes, and
follow to implement a ‘Gross Payment Model’: pay the PSC the net amount directly.
l The agency could run the payroll and
l No SDS: With no SDS, the rogue umbrella provide the client with an audit trail.
pays the money gross to the PSC and claims l The client and agency could insist on an
they were told it was ‘Inside IR35’, but no entire audit trail for every pay-ment using an
SDS was given to the worker. umbrella, proving the correct money flows
l Void SDS: The words ‘Inside IR35’ do not have occurred.
qualify as an SDS. Neither does an SDS l Do nothing.
without reasons in it. Nor one where The first option is messy, leaving the client
reasonable care was not taken. open to future employment tribunal claims.
l Weak SDS: A weak SDS could be Option two removes the benefits of using
considered umbrellas, so option three is arguably better.
by the umbrella and then just dismissed Option four is, at best, negligent and could
and replaced with their determination that lead to criminal sanctions.
says ‘Outside IR35’. There is no statutory
obligation on the fee-payer to follow what the Never say ‘Inside IR35’ again
client has concluded on IR35 status.
In all engagements, the words ‘Inside IR35’
If the umbrella pays gross monies, the client is should never be used unless accompanied
now unknowingly building up tax risk under the by a robust IR35 assessment that meets the
OPW rules in the abovementioned cases. The statutory requirement for being a valid Status
agency may also have committed an offence Determination Statement.
under the Criminal Finances Act 2017 for looking
the other way and failing to prevent tax evasion. Also, using ‘Inside IR35’ as a placeholder for
‘payroll-only’ opens the door to non-compliance.
How clients and agencies can secure
their supply chains Finally – if there are umbrellas in the supply
chain, an exhaustive audit trail is the only way to
With this risky tax loophole now understood, guarantee compliance and combat the risk that
what should clients and agencies do? the rogues leave you with a nasty future surprise. n
RIGHT HERE, RIGHT NOW

Sebastien Sauca, CEO & Co-Founder of SafeRec.co.uk discusses the
importance of real-time compliance.
The recruitment industry, like many others, has seen a transformation in the wake of
technological advancements over the past few years. The incorporation of compliance
technology, particularly real-time compliance, has been a game-changer. This article
delves into the evolution and impact of real-time compliance technology in the
temporary labour market, focusing on its advantages, the challenges it helps overcome,
and the need for recruitment agencies to adopt it.
The evolution of compliance technology

Over the past decade, technology has become instrumental in enhancing compliance
within the recruitment industry. Innovative solutions, sometimes using artificial
intelligence, help agencies increase their effectiveness and efficiency across their entire
organisation.
The Umbrella Company is arguably one of the hottest topics in the Temporary Labour
Market at the moment and a great example of what real-time compliance can solve.
The recent launch from the government of a consultation presents different routes
that the government is considering to regulate Umbrella Companies. One of the likely
options is the implementation of a third-party debt transfer, and this is the reason why
we have seen many temporary recruitment agencies looking more than ever into where
potential debts come from in their supply chain. And when it comes to third-party payroll
providers, the answer is nearly always about how taxes are calculated and if they are
paid to HMRC. >
Additionally, there is always a gap when organisations talk about how compliant
they are. If it is not checkable or even auditable, it is very easy for an unscrupulous
average salesperson to say to agencies or workers what they want to hear to close
the deal. This has led to numerous umbrella companies being implicated in operating
tax avoidance schemes over the past decade.
Real-time compliance now addresses directly the issue that recruitment agencies face
by auditing all payments made by third-party providers such as Umbrella Companies
and ensuring all taxes have been paid to HMRC. This is what was launched in June
by SafeRec with their Umbrella Certification (https://saferec.co.uk/saferec-umbrella-
certification).
The power of real-time compliance

Real-time compliance is an innovation that offers a solution to all challenges.
Systems, where rules are monitored and enforced in real-time offers significant
advantages. When coupled with transparency and third-party verification, it makes the
whole process bulletproof.
Any attempt to circumvent compliance becomes impossible, as the system operates

as operations happen. The third-party verification offers an additional layer of
oversight, ensuring that the company is operating within the law and that workers are
paid correctly and their taxes properly handled. >
Temp recruitment agencies’ challenges and technological solutions

In 2023, recruitment agencies face a series of challenges and are being asked to
comply with more laws and regulations than ever before.
Technology is offering solutions to mitigate these regulatory burdens. Numerous

tech platforms assist agencies with onboarding processes, branding, sales activities,
compliance requirements, and business protection against tax liabilities. These
platforms, by leveraging AI and real-time data, are enabling recruitment agencies to
operate more efficiently and effectively.
In the temporary labour market, technology helps to monitor and adhere to rules and
regulations on an immediate, ongoing basis. Digital tools can automatically track work
hours and payments, ensuring that temporary workers are compensated fairly and in
accordance with tax and employment laws.
What should you do as an agency?

As we’ve explored, the power of real-time compliance and technology is
transformative for the temporary labour market. Technology enhances efficiency,
fosters transparency, and increases accountability in an industry that desperately
needs it.
Recruitment agencies need to embrace partnerships with tech companies to navigate

the changing landscape successfully. By harnessing the power of technology, these
agencies can not only ensure compliance but also streamline their operations and
make more informed decisions.
Technology touches every aspect of recruitment. It has revolutionised sales and is now
making a significant impact on the compliance side of operations. Agencies that fail to
adapt to this tech-driven landscape may find themselves at a significant disadvantage.
So it’s high time for agencies to explore and adapt to the technological revolution.
The future of recruitment lies in technology, and the time to explore is now. n
RETURN TO CONTENTS RI GH T TO WO RK 31
ALL RIGHT
TO WORK?
Monica Atwal, managing partner and
head of immigration and employment for
Clarkslegal LLP details the background and
practicalities of this area of compliance.
It is a fundamental human right to work, to derive purpose and reward from your labour,
to advance and contribute to society. The United Nations Universal Declaration of
Human Rights states everyone has the right to work, to free choice of employment,
to just and favourable conditions of work and to protection against unemployment.
Everyone, without any discrimination, has the right to equal pay for equal work.
It is only a relatively recent concept to regulate entry into countries, the UK introducing
the Aliens Act in 1905. Before then you could come and go with ease onto these shores.
The Act targeted “undesirables” and granted the new common status of British subject.
It was a response to the worldwide mass movement of people seeking opportunity with
the commensurate skill and drive, and escaping poverty and persecution. It reflected
the growing tensions in the world and anti-immigrant sentiment. The 1905 Act also
introduced the right to work checks. It became a criminal offence to employ anyone
unless they had permission to live and work in the UK. There were on the spot fines
of £2,000 payable by employers for each illegal employee. That is about £17,000 in
today’s money.
Current penalties
The penalty for employing illegal workers currently is that you could be sent to jail for
5 years and pay fines (£20,000 per illegal worker) if you are found guilty of employing
someone who you knew or had “reasonable cause to believe” did not have the right to
work in the UK. >
This includes, if you had reason to believe that (a) they did not have permission
to enter or remain in the UK, (b) their leave had expired, (c) they were not allowed
to do certain types of work, or (d) their papers were incorrect or false. With the
sophistication of forgeries and AI generation, the last category is an increasing risk.
Illegal working civil penalties from 1 October to 31 December 2022 in the UK totalled
£5.8 million, with 329 penalties issued and 502 illegal workers found. Employers are
named and shamed, and the penalties range between £10,000 to £75,000. A review
shows that fined employers tend to be small and in the care, hospitality, construction,
cleaning, car wash and retail sectors. This reflects sectors that have low paid staff.
That in turn reflects the value as a society we place on jobs, wages and rampant
consumerism.
There are compelling economic and social arguments for global free movement of
people. Climate change will only increase migration, the modern paradox of global
connectivity and reliance yet with increasing protectionism by individual countries,
borders and border regulation is here to stay. A further paradox, as shown by the UK
migration statistics, is that for UK companies, it is currently relatively easy to obtain
visas to employ overseas workers. The Office for National Statistics for the year
ending June 2022, showed net migration of 504,000, the highest net migration since
the Second World War and much higher than pre-Brexit levels. The issue for recruiters
and employers is cost, with the July government announcement that visa application
fees and the immigration health surcharge are set to significantly increase. >
RTW checks
Conducting Right to Work (RTW) checks are mandatory for a UK employer, and the
current regime safeguards against illegal workers. Another issue for employers is the
complexity of the checks and changing law and guidance, the type of check required
depends on the immigration status of the employee from a British passport holder to
those with limited rights to work requiring repeat checks.
As part of recruitment, pre-employment checks, ascertaining the right to work in the

UK must be carried out in a non-discriminatory manner and on all potential employees.
The RTW must be done before the employee starts to do any work for the employer. If
the check is scheduled for the first day of employment, and the new employee forgets
or does not produce the requisite documentation, they cannot start work.
The RTW are set out under Section 15-25 of the Immigration, Asylum and Nationality
Act 2006, supported by Home Office guidance which is lengthy and regularly updated.
Employers are under a duty to stay informed and be aware of the latest guidance.
By carrying out correct prescribed RTW checks, the employer can rely on a statutory
defence to employing an illegal worker and avoid consequences such as fines or
sponsorship licence revocation and reputational damage.
In compliance with the Home Office guidance on RTW checks, there are four ways to
conduct RTW checks:
l Manual Right to Work checks

l Online Right to Work checks
l Employer Checking Service
l Digital Right to Work checks
Choosing the correct check for each worker depends on different factors, such as the
worker’s nationality and immigration status. However, an employer cannot mandate
how a worker proves their right to work, this is to avoid discrimination against anyone
(e.g. if they possess an expired passport, etc.). Employers should provide every
opportunity to enable an individual to prove their right to work. >
Manual right to work checks

Manual checks involve meeting the individual face-to-face and verifying their physical
documentation. If this is not possible, then an online check must be carried out on the
verified Home Office website, and/or the employer must continue manually checking
different documents until they are either satisfied or not satisfied that the individual has
a right to work in the UK.
To establish a statutory excuse and ensure the proper conduction of manual RTW
checks, employers must complete three steps before the individual commences their
employment.
l Obtain: Employers must first obtain original documents from the candidate.
l Check: Employers must check that the documents obtained are genuine and that
the person presenting them is the prospective or existing employee allowed to do the
type of work offered.
l Copy: Record keeping is crucial for compliance. Employers must make a clear
copy of each document in an inalterable format and retain the copy securely during
the course of the individual’s employment and for two additional years thereafter.
Online right to work checks

The Home Office online right to work check offers a statutory excuse against civil
penalties in case of illegal working. The online service Check a job applicant’s right to
work: use their share code - GOV.UK (www.gov.uk) on GOV.UK, facilitates this process.
However, employers cannot check all prospective workers right to work via online
checks, as some may lack eligible immigration status. In these cases, a manual RTW
check should be conducted in the legally prescribed manner. >
The digital proof of immigration status is part of the UK’s shift towards a digital
immigration system, promoting simplicity, safety, and convenience. Individuals with
eVisas, Biometric Residence Card (BRC), Biometric Residence Permit (BRP), or
Frontier Worker Permit (FWP) are the categories that can only use the online service
to demonstrate their right to work, with physical BRCs, BRPs, or FWPs not accepted
as proof.
With checks conducted online, employers must still meet the new employee face-
to-face on their first day of work, confirm their identity and keep a copy of the online
check for the duration of their employment and for two years thereafter.
Employer checking service

Individuals unable to provide viable documentation and/or use online checks due to
pending applications, appeals and similar, can use this free online service provided
by the Home Office, enabling employers to conduct right to work checks. This service
must only be used when the necessary original documents and/or online checks are
not available.
Digital right to work checks

From 6th April 2022, employers can carry out remote digital checks for British and
Irish citizens holding British/Irish passports or Irish passport cards. These checks are
conducted using an Identity Document Validation Technology (IDVT) used to confirm a
person’s identity. Employers will obtain a statutory excuse where they can demonstrate
that they have complied with all the statutory requirements to conduct right to work
checks. Where they have used an IDSP (IDSPs are a provider of identity verification
services using IDVT), the statutory excuse will only be obtained where the employer has
checked a digital copy of a physical document relating to the person for the purpose of
confirming the document’s validity and the person’s rightful ownership.
IDVT checks are invalid if the British or Irish passport/passport card relied upon has
expired. To obtain a statutory excuse for an expired British/Irish passport or Irish passport
card, the employer must carry out a manual right to work check in the legally prescribed
manner. >
Outsourcing right to work checks to third parties

Since April 2022, with the introduction of IDSPs providers, it has been possible to
‘outsource’ right to work checks. Employers can engage IDSPs to conduct these
checks only for valid British and Irish passport holders and valid Irish passport card
holders.
It is important to note that outsourcing these checks does not transfer legal obligations
to the third party provider. The IDSPs provider must conduct the checks in the
prescribed manner, however, it is the business’ responsibility to ensure that the checks
conducted are done in the prescribed manner and match the employee’s identity on
employment’s commencement. Organisations should audit their IDSPs and ensure
the contractual arrangements are robust. But prevention of illegal working and
exploitation requires a review of all in your supply chain.
Immigration changes announced on 17 July 2023

Relevant to RTW, it is important to keep up to date with changes to immigration rules. On 7
August 2023 there will be seven additional occupations added to the shortage occupation
list. These are in the building sector (brick layers, roofers, carpenters, construction,
plasterers) and fishing industry. They have lower salary requirements and lower UKVI
visa application fees. Other changes were announced and came into effect on the same
day (17 July 2023) regarding student visas and removing the right to bring dependants
(dependants of visa holders are able to work in the UK). Another change brought into
force on the same day was the removal of international students being able to switch out
of the student route into work routes before their studies have been completed. n
ENHANCE COMPLIANCE WITH

DIGITAL RIGHT TO WORK CHECKS
TONY MACHIN, CEO OF TRUSTID DESCRIBES HOW DIGITAL RIGHT
TO WORK (RTW) CHECKS AND ID VALIDATION TECHNOLOGY HELP
RECRUITERS ADD VALUE AND PROTECT RELATIONSHIPS.
Businesses in the UK are required by law to perform Right to Work (RtW) checks for
every new hire, and there are penalties for employing someone who is not entitled to
work in the UK. While the legal obligation for recruiters and recruitment agencies to
perform these checks varies depending on the type of contracts their applicants take,
there are very real benefits for all agencies to adopt a robust candidate RtW process.
Right to Work (RtW) check guidance has been in place since 2006 helping businesses
to understand their obligations around checking an employee’s right to work in the UK.
Increasingly, recruiters are opting to introduce technology, either to support physical
document checks in-house or remote checks through an Identity Service Provider
(IDSP).
Of course, there’s a slight difference in the legal requirements of recruitment companies

and agencies to perform RtW checks. When it comes to agency workers, where the
worker is employed by the agency throughout their contract, the agency has the legal
responsibility to make relevant checks on their work status. Recruitment companies who
source and put forward candidates to fill permanent roles might not be legally required
to perform the checks, but many choose to do so for a number of reasons, including to
protect their reputation and to offer a ‘stand-out’ service. Good recruiter-client relations
lead to repeat business, which is why many recruiters perform RtW checks before the
interview stage, even if the hiring business still needs to carry out its own RtW checks
once a candidate is successful. >
What are digital Right to Work checks?

Since April 2022, RtW guidance has allowed employers to make digital checks. This
started when pandemic restrictions made it necessary to perform checks remotely,
with permanent adjustments then introduced in October 2022 to continue a remote
process for eligible applicants.
Digital checks remove the need to meet applicants face-to-face, which saves
recruiters time and money arranging physical meetings especially as many people
now work remotely.
Under the Digital Scheme, a recruiter can carry out a digital RtW check on holders of
in-date UK and Irish passports and passport cards using identity document validation
technology from an IDSP. As part of a compliant digital check, it is vital to confirm the
applicant’s identity through biometric facial matching to avoid ‘imposter fraud’. An
IDSP matches a selfie image to the image provided in the ID verification document.
RtW checks on non-UK/Irish citizens who hold an eVisa are performed by checking
the share code and date of birth provided by the applicant with the Home Office
checking service.
A recruiter can still check a candidate’s physical documents. These must be original
documents, not copies, and biometric residence permits or cards (BRP or BRC) are no
longer permissible. >
What are the benefits for recruiters?

Recruiters are under enough pressure to source and qualify candidates without
becoming immigration, legal or documentation experts. Performing RtW checks manually
can be time-consuming and, in a fast-moving recruitment environment, could be
potentially deal-breaking. Which is why more than 700 recruitment companies in the UK
have chosen TrustID as their government-certified IDSP partner for benefits that include:
l Efficient, on-going compliance from anywhere.

With digital validation, candidates don’t need an appointment to perform a physical
document check as they can upload their documents via a one-time access email.
l Flexibility to meet seasonal demands.

A pay-per-check pricing model with low minimum order volumes and no set-up or
user licence fees means recruiters can scale up for a big event and scale back
down when things are quieter.
l Reduced administration.
Creating a RtW report for each applicant that the recruiter downloads and stores in
their own system avoids photocopying and filing images of identity documents. HR
and onboarding teams can easily access the information to support future audits.
l A professional and transparent check.

IDVT provides a highly professional way to show compliance to both applicants and
clients, as one recruiter told TrustID, “ID checks set the tone for the professional
way that we work”.
l An easier way to stay on top of compliance.

Keeping up with legislation changes can be challenging, especially when it comes
to recruiting people with different documents. TrustID’s Right to Work services
contain built-in ‘wizards’ which are updated as guidance changes to maintain
compliance.
The benefits of using an IDSP for document validation and Right to Work checks provide
recruitment companies with greater peace of mind, through cost-effective technology that
is simple to grasp.
To find out more, please visit our website. n
GETTING THE RIGHT RIGHTS

Ikram Malik from the business immigration team at law firm Brabners
discusses getting to grips the Right to Work.
In March, the Government implemented a set of changes to the Employer’s Guide to

Right to Work checks, which sets out the steps which firms must take to ensure that all
employees are legally eligible to work in the UK.
All employers are obliged to verify that individuals working for them have a valid
right to work. However, as all UK citizens are valid for employment, the rules are
especially important for firms reliant on business immigration with failure to comply
bringing serious consequences. These can include fines, closure of your business,
disqualification of directors and, in very serious cases, the risk of a criminal conviction.
The Prime Minister has stated his intention to free-up Home Office resources
during 2023 to allow for greater enforcement action. That’s reflected in the recent
announcement to increase the civil penalty to £45,000 from £15,000 for first time
offenders, and to £60,000 from £20,000 for repeat offenders for employing an illegal
worker. With this in mind, it’s more important than ever that recruiters are following rules
to the letter. So, what exactly are the new changes, and why are they important? >
Digital verification
One key change to the rules relates to the use of Identity Service Providers (IDSPs) to
undertake remote identity checks, in a move that provides further clarity on measures
introduced in April last year.
The Government previously introduced legislation to help accommodate for the surge
in remote working, allowing employers to use Identity Document Validation Technology
(IDVT) to confirm that employees are who they say they are. In order to ease the
administrative burden, employers have been able to use IDSPs to undertake digital
identity checks for them. This is usually completed by video call or in person, and the
employer remains liable for any civil penalty if the check has not been done properly by
the IDSP.
However, it’s clear that several IDSPs have been offering to complete manual and
online right to work checks for clients – both of which are out of their legal remit. To
combat this, the guidance has been updated to confirm that this is not permitted and
that these checks must be completed by the employer.
With this in mind, employers need to ensure that they are not relying on IDSPs in this
way, at risk of receiving illegal working penalties.
3C leave
Employers should also note new changes to 3C leave, which refers to the period granted
while a visa extension is being processed. The Government has implemented new
functionality to allow individuals to digitally verify their right to work using a share code.
Historically, the only way for an employer to establish that individuals in this situation have
a valid right to work has been via the Employer Checking Service (ECS), often leading to
a protracted process and causing uncertainty for the applicant. >
The latest update means that eVisa holders will now be able to prove they have a right
to work where an application is pending via a share code. But it’s worth noting that this
will only provide employers with confirmation that individuals have the right to work for
a 6-month period. This means employers will still need to undertake follow up checks
when this period expires.
This will have only limited application to start with, and for those without an eVisa,
employers must still conduct checks through the ECS. However, as time goes by,
more and more individuals will be able to demonstrate their right to work in this way
as the Government continues aiming to free up the administrative burden on business
immigrants.
How should employers prepare?

Employers should leave no stone unturned in ensuring that they are following the updated
rule given the serious implications of non-compliance. As a first step, we would advise all
employers and recruiters to review their policies and procedures to ensure that they meet
the up-to-date requirements.
This should involve examining how they are engaging with IDSPs to ensure that they are
undertaking compliant checks. Employers should also provide training for staff undertaking
right to work checks, to make sure that the checks are being properly implemented in
practice.
Business owners and employers should as a precautionary step proactively audit their
existing right to work checks to flush out and address any issues before they arise.
Business immigration guidance can often be tricky to navigate, so it’s important to always
take extra care in ensuring that your operations are in order. Insight from a specialist
adviser can often be the best way to guarantee compliance.
For more information, visit:

https://www.brabners.com/services/employment/business-immigration n
PRE-EMPLOYMENT SCREENING
TECHNOLOGY: A MUST-HAVE
FOR RECRUITERS
In the rapidly evolving landscape of recruitment, identity document validation technology
(IDVT) has taken centre stage. In 2022, the UK Government introduced new standards
to support pre-employment screening checks being conducted digitally. As a recruiter,
embracing these changes will not only ensure compliance with the latest regulations
but also save you valuable time and effort. Additionally, it will position you as a forward-
thinking and innovative recruiter, setting you apart from the competition and enhancing
your reputation in the industry. >
Navigating Right to Work and DBS Checks

In response to recent changes to the Right to Work legislation, recruiters are now
required to utilise a UK government-certified Identity Service Provider (IDSP) to
perform digital Right to Work checks on their candidates. Similarly, for conducting
DBS criminal record checks digitally, recruiters must now also rely on a certified
identity provider.
In-person verification of documents is still an option, but it comes with significant

challenges in validating document authenticity. The process can be complex, time-
consuming, and carries inherent security risks. Inaccurately conducted Right to
Work checks can lead to a civil penalty of up to £20,000 per illegal worker hired.
Statistics from the Home Office reveal that between 11th December 2022 and 23rd
January 2023, 92 civil penalties were imposed for illegal working, costing businesses
a staggering £1.5 million. Opting for digital checks with a certified provider ensures
a more efficient and secure process, safeguarding your business from potential
penalties and maintaining the highest standards of compliance.
Choosing the Right Digital Provider

In today’s market, the abundance of Identity Service providers can make choosing the
right one for your business a daunting task. Making the wrong choice could lead to a
disjointed onboarding experience. Picture the frustration of realising essential tasks
still demand manual intervention, or that you are tied to multiple providers for different
checks.
Given that each provider offers an array of features, recruiters must carefully pinpoint
the best fit for their distinct candidate vetting process, onboarding needs, and internal
workflows. Here are some key considerations to guide you when choosing a provider: >
Certification and Compliance: Ensure that your chosen Identity Service Provider has
undergone the Home Office-approved accreditation process and has achieved full
certification under the UK Trust framework for Right to Work and DBS checks.
Comprehensive Suite of Checks: Opt for a provider that consolidates all essential pre-
employment checks including Right to Work and DBS checks in one place, eliminating
the need to use multiple providers.
Ease of Use: Your chosen provider should offer a fully digitised and secure process that
is easy to navigate for both you and your candidates. Avoid providers that offer hybrid
solutions, as they can introduce human error and slow down the process.
End-to-end Onboarding: Seek a provider that surpasses basic pre-employment checks

and offers unique solutions to streamline the entire candidate onboarding process.
Look for functionalities that enable secure and quick information sharing and document
exchange, ensuring seamless end-to-end onboarding.
Training and Support: Prioritise a provider that is easy to set up, offers user-friendly
training to quickly familiarise your team with the platform and provides ongoing support
for both you and your candidates.
Accessibility: Choose a provider that caters to the diverse needs of your candidates, such
as offering app and web-based platforms for access through various devices along with
fallback routes designed to accommodate specific candidate onboarding requirements.
As a UK government-certified digital provider for both Right to Work and DBS checks,
Amiqus offers comprehensive pre-employment screening and end-to-end candidate
onboarding, all in one platform.
For more information, please visit the Amiqus website. n
RETURN TO CONTENTS REFO RM REQ U I RED 48
REFORMS FOR
RECRUITMENT
Compliance First: Tania Bowers,
Global Public Policy Director outlines
the current state of play for regulation
of the recruitment sector.
The regulation of the recruitment market

in the UK has faced significant changes in
recent years, with 2023 so far proving to
be no exception. We’ve already seen the
announcement of the IR35 set off mechanism
and Retained EU employment law reforms,
both of which we welcome, though more could
have been done, in APSCo’s view, in relation
to both announcements.
Aside from these more ‘high-profile’ regulatory developments, we have also seen a
number of consultations launched in recent months, which could have a big impact on the
recruitment market in the near future. So what other reforms are on the cards for recruiters?
Education consultation
The pressures on the education labour market and teachers themselves have certainly
been a hot topic as strikes continue to impact the sector. The shortage of professionals in
the industry is well The pressures on the education labour market and teachers themselves
have certainly been a hot topic as strikes continue to impact the sector. The shortage
of professionals in the industry is well documented. Our own research – produced in
conjunction with Broadbean – has shown that vacancies for 2023 so far remain high,
with January and February both reporting annual increases in jobs (up 36% and 44%
respectively). However, application numbers are not keeping pace with this growth.
The Education Select Committee has taken action to address this issue, launching an
inquiry on teacher recruitment and training. While it is hoped that the review will drive
positive changes in education recruitment, we believe that current requirements from the
Department for Education (DfE) and Ofsted are too rigid and should be simplified in order
to address talent attraction and retention issues. >
Based on the insight from our members the skills shortage is such that an overnight
in the education sector, we have also solution isn’t feasible, we are of the opinion
highlighted in our response to the that improvements can be made. In
Committee that it should consider particular, we feel that greater collaboration
additional steps, including: is necessary across the recruitment supply
chain.
l Prioritising Early Years and literacy
due to the impact on later attainment. Another area that is facing a critical
shortage of resources is the child and
l Allowing more school-based and family worker sector. Although the extent of
localised decision-making, while the skills shortage is such that an overnight
reducing the focus on external solution isn’t feasible, we are of the opinion
measurement as a signifier of success that improvements can be made. In
or failure. particular, we feel that greater collaboration
is necessary across the recruitment supply
l Financing extra teacher training to chain.
increase routes into the profession and
boost wellbeing support. The DfE opened a consultation earlier
in 2023 that would see a potential new
l Reducing and clarifying the DfE and set of rules introduced around the
Ofsted’s guidance on recruitment and engagement of agency social workers. The
compliance. This includes producing recommendations included introducing
clear pathways to recruitment that price caps on pay for agency workers.
give headteachers themselves
the confidence to hire and remove Having reviewed the proposals, APSCo
unnecessary administrative processes has recommended that a number of
and compliance steps. actions are implemented, including:
At the time of writing, the consultation had l Extending the focus beyond just
closed, with no clear indication as to when recruitment spend on agency workers
the Committee’s findings will be published. and looking at ways to assist with the
retention of substantive staff.
Child and family social worker
consultation l Recognising the importance of a
regional approach and working within
Another area that is facing a critical existing structures. >
shortage of resources is the child and
family worker sector. Although the extent of
“32% of recruiters
and outsourcing
providers stated that
51-75% of invoices
are paid late.”
l Working with local authorities, framework community. Last year, APSCo UK and
providers and the recruitment supply chain APSCo OutSource surveyed its membership
to develop a more collaborative contract to ascertain a clearer picture of current
management programme and even-handed payment terms and how these are impacting
terms. The prime goal being to work for the businesses. We found that while most sectors
good of the community being served. had terms of 30-60 days, some reported much
longer timeframes: 91-120 days was common
l Controlling project work, rather than for 11% of outsourcing firms in life sciences
banning it altogether. and pharmaceuticals with 31-90 days the norm
for 67% of those operating in this industry. For
The Government’s response to this consultation engineering outsourcers, 33% stated that 61-
are expected to be published in September 90 day payment terms were normal.
2023.
While we are seeing longer payment clauses –
Prompt payment proposals largely driven by the end client community and
cashflow pressures – late payments are a big
The issue of prompt and long payment in concern. In fact, in the pharmaceuticals remit,
the supply chain is one that resonates with 32% of recruiters and outsourcing providers
recruitment firms and those in the outsourcing stated that 51-75% of invoices are paid late. >
For the recruitment sector, the growing The regulation in question came into
length of contractual terms and late effect in April 2017 and requires all large
payment culture are both creating a UK companies to report publicly on
financial burden on second tier suppliers. their payment policies, practices and
The contingency labour market is subject performance. The rules currently run until
to the stress of being required by law or 6th April 2024.
regulation and by good practice to pay
workers or their employers on short terms, Under the proposed reforms, the regulation
ranging from 7-28 days of invoice. The would be extended and further changes
invoice is triggered by the submission of would be made to ensure fairer payment
a timesheet, usually within a few days of in the supply chain. These include greater
the period of work. Some end hirers, either transparency of contractual requirements
directly or via their outsourcing partner’s across the supply chain and referencing
contract, mandate payment to workers on payment reporting in a company’s
7- or 14-day terms while imposing these director’s report.
longer payment terms on their suppliers.
While we agree with some of the planned
As a result, many outsourcers work on reforms, we have reported back that these
pay when paid terms. This means that should be built on further. Results of the
second tier suppliers can often be required now closed consultation are expected to
to bridge a payment gap of up to three be published later in 2023.
months. Given that these are often SME
recruitment firms shouldering this financial There’s clearly a lot of reform taking place
burden, we believe that fairer practices are across the employment market in the
needed. UK, which is to be expected given the
significant changes that we’re experiencing
In April 2023, we submitted the results in the world of work at the moment. While
of the above survey and our responses we agree that reforms are needed, APSCo
to questions outlined in regards to the remains committed to the need to ensure
Amendments to Payment Practices and the voice of the recruitment sector is heard
Performance Regulations 2017 and the in any such developments. It will certainly
Limited Liability Partnerships (Reporting be interesting to see how the regulatory
on Payment Practices and Performance) landscape pans out for the rest of 2023. n
Regulations 2017 consultation.
THE DEBT YOU TAKE

Recruiters could soon be on the hook for their umbrellas’ dodgy
practices says Julia Kermode, CEO PayePass.
After nearly 18 months of deafening silence, agencies if the debt transfers to them.
on June 6th the government finally issued
its response to the umbrella company One argument for this approach (and given
consultation. But rather than revealing long- recruitment agencies effectively control the
overdue plans to regulate the sector–promises umbrella market) is that the debt transfer
which were made more than six years ago, I umbrella market) is that the debt transfer
should add–the response included a new set could incentivise agencies only to work with
of proposals for us all to consider. The lack of compliant umbrella companies.
immediate action is concerning, however.
Regardless, this potential change on the
It feels like the regulatory can is being horizon means recruiters should be taking the
continually kicked down the road, with the behaviour of umbrella companies seriously,
government failing to prevent tax avoidance and keeping an eye out for warning signs of
or ensure fairer working practices in the non-compliance.
industry. That said, several valid ideas
were put forward, such as ensuring proper For example, umbrellas paying over the odds
due diligence is carried out on umbrella to agencies to appear on their PSLs might
companies. One proposal that would have not be compliant, because they could be
a major impact on recruitment agencies is in a position to price competitors out of the
focused on debt transfer. market simply by avoiding tax. So this debt
transfer, while one more consideration that
Severe implications recruiters might not like the sound of, could go
some way to encourage agencies to engage
It means that the implications of engaging a umbrella companies based on factors other
tax avoidance scheme posing as an umbrella than finances.
company are likely to be severe for agencies
as they may be held financially liable, with tax What’s more, engaging umbrella companies
debt transferring up the labour supply chain. based on compliance, transparency and
fairness is of enormous benefit to workers–
The government has done something similar especially the thousands who have
before, of course. Upon the introduction of unknowingly worked through tax avoidance
the off-payroll working rules in both the public schemes over the years and been left with
and private sectors, the tax liability shifted devastating tax bills as a result. And in a
from contractors to fee-paying recruitment candidate-led market, retaining your workers
agencies. has got to be of utmost importance.
The new proposal would see recruiters I can’t imagine any incoming change
carry the can for tax non-compliance of the happening without some caveats, though.
umbrellas they work with. Once again, in Similar to the debt transfer under the
implementing this change, the government off-payroll working rules, it seems likely
would be delegating its enforcement that‘reasonable steps’would be taken into
responsibility to the supply chain. account.
It means that recruiters will need to do This means that a tax debt may not be
everything in their power to make sure that transferred if a business can evidence that
the umbrella companies used aren’t dodgy. it has taken reasonable steps to ensure an
If a tax avoidance scheme is engaged, even umbrella company has paid its taxes. It is
accidentally, the financial liability can quickly however too early to know what these steps
build up to the point where it could wipe out may entail. >
“The new proposal would see recruiters carry the can

for tax non-compliance of the umbrellas they work with.
Once again, in implementing this change, the government
would be delegating its enforcement responsibility to the
supply chain.”
Prepare now
We may be some way off the debt transfer being introduced. Even so, it’s in
recruiters’best interests to prepare now, making sure the umbrella companies they
engage do not put them at risk.
While taking umbrella company compliance seriously is something that must start at
the top of your business, it should run throughout it, too. Directors and owners would
be wise to stress the importance to staff that umbrella companies can’t bribe their way
to be a companies can’t bribe their way to be a preferred supplier–this is a message
that must be communicated and enforced.
The good news is that recruitment agencies can navigate all of this. With the right
approach, it’s perfectly possible to irrefutably prove that an umbrella company is
paying the appropriate amount of tax–something all agencies should be doing right
now irrespective of the government’s plans to transfer the debt. n
THE COST
OF SUPPLY
David Thornhill, Managing Director,
Simplicity, says HMRC’s Supply Chain
Fraud mission could be expensive for
recruitment agencies.
In recent years, supply chain fraud has emerged as a significant concern for both
businesses and HMRC. As supply chains become increasingly complex and global,
the risk of fraudulent activities, such as VAT fraud and missing trader intra-community
(MTIC) fraud, has grown substantially. In the United Kingdom, the tax authority
responsible for combating such fraud is Her Majesty’s Revenue and Customs
(HMRC). Below delves into the assertiveness and proactive measures undertaken by
HMRC in addressing supply chain fraud and the impact it has on clients.
The Expanding Menace of Supply Chain Fraud

Supply chain fraud refers to a complex set of illicit practices aimed at exploiting the
complexities of supply chains to evade taxes or gain financial advantages unlawfully.
Common forms of supply chain fraud include carousel fraud, where goods are
repeatedly imported and exported, creating artificial transactions to reclaim VAT, and
missing trader fraud, where a trader vanishes without paying the due VAT after selling
goods. >
What actions are HMRC taking to tackle supply chain fraud?

l Risk Assessment and Intelligence Gathering: HMRC employs a sophisticated risk
assessment system to identify high-risk supply chains and potential fraudsters. By
leveraging data analytics and intelligence gathering, they can pinpoint suspicious
activities and patterns within supply chains.
l Collaboration with Industry Partners: HMRC actively collaborates with industry

experts, professional bodies, and technology companies to stay abreast of emerging
fraud trends and develop effective countermeasures. These collaborations facilitate
the exchange of information, enhances their fraud detection capabilities, and fosters a
united front against supply chain fraud.
l Robust Investigations and Prosecutions: HMRC’s approach to tackling supply chain

fraud is characterized by its vigorous investigations and prosecutions. They employ
specialised teams equipped with advanced data analytics tools to uncover complex
fraud schemes. Once identified, HMRC takes legal action against fraudsters, aiming
not only to recover lost taxes but also to deter potential offenders.
l Legislative Measures: In response to the evolving nature of supply chain fraud,

HMRC has actively sought legislative changes to strengthen its powers. The
introduction of Joint and Several Liability (JSL) provisions in 2012 made directors and
other parties connected with fraudulent businesses personally liable for the unpaid
VAT. Such measures act as powerful deterrents, dissuading individuals from engaging
in fraudulent activities. >
Supply Chain Fraud and Umbrella Companies

Recruitment agencies are the party in the supply chain that invariably either introduces
a scheme to workers or signs contract agreements with them. This includes schemes
dressed up as legitimate umbrella companies when they’re anything but legitimate.
HMRC’s avoidance blacklist raises a number of questions that are not easy to answer,
particularly if you’re a first-timer contractor or a newcomer to the contractor industry.
You might be wondering why would a recruiter introduce a tax avoidance scheme to a
worker in the first place.
In the vast majority of cases the answer is a desire to boost their income. Some
companies claiming to be a bonafide umbrella and/or payroll company will offer
payments for introductions made. These sums can start at £5 per week, per worker,
and this sum can, to avoid tax, be pre-loaded onto a payment card. Although £5 might
not seem much but over a year, some recruiters might be £250 better off as a result.
Multiply that figure by 200 workers, which is not unrealistic if you’re an agency with
good clients, and you’re looking at a staggering £50,000 effectively in cash!
There are of course many great, respectable, legitimate and customer service-focused
umbrella companies, operating in accordance with HMRC and the Department
for Business & Trade guidance. Indeed we are proud to work with many of these
legitimate umbrellas. >
So what are the implications for Recruitment Agencies of HMRC’s stance?

HMRC’s unwavering commitment to combatting supply chain fraud has significant
implications for recruitment agencies, particularly those inadvertently caught up in
fraudulent schemes:
l Increased Scrutiny: As HMRC intensifies its efforts, innocent businesses and

individuals may face heightened scrutiny. Supply chain transactions and VAT returns
may be subject to more frequent audits or investigations, even if there is no direct
evidence of fraudulent activity. While this might be seen as an inconvenience, it is a
regrettable necessary step to ensure the integrity of the tax system.
l Collaborative Compliance: Recruitment agencies are encouraged to adopt a

collaborative approach to compliance, actively engaging with HMRC and industry
experts to understand fraud risks within their supply chains. By embracing
transparency and voluntarily sharing information, agencies can demonstrate their
commitment to compliance and reduce their vulnerability to fraudulent activities.
l Legal Implications: Clients unknowingly involved in fraudulent supply chains may

face legal consequences, even if their involvement was unintentional – harsh as that
might seem. Ignorance or negligence is not a valid defence in such cases. It is critical
that recruitment agents exercise due diligence when selecting suppliers and diligently
monitor transactions to mitigate the risk of inadvertently participating in fraudulent
schemes.
HMRC’s dogged pursuit of supply chain fraud highlights its determination to protect
the integrity of the tax system and whatever you feel about it personally is founded
on their desire to ensure a level playing field for all businesses. Through its proactive
approach, robust investigations, and collaborative efforts, HMRC aims to detect and
deter fraudulent activities. By actively engaging with HMRC and implementing strong
due diligence processes on selection and ongoing compliance measures on all its
supply chain, recruitment agencies can mitigate their exposure to supply chain fraud. n
DOES THE REST OF THE WORLD HAVE

A SOLUTION TO THE UK’S FLAWED
UMBRELLA SYSTEM?
ANDREW FAHEY, GLOBAL CCO OF PEOPLE 2.0
The UK’s long-awaited consultation into regulation of the umbrella market should have
presented an opportunity to re-assess our broken system of contractor engagement.
Instead, it offers sticking plaster solutions in place of effective reform, as we’ve seen
time and time again. It’s high time that UK policy makers look at international best
practices for their inspiration.
Ineffective solutions
Proposals for regulation of the umbrella market have been welcomed by the contracting
community, and rightly so. All-too-common issues of non-compliance and poor payroll
practices negatively impact contractors, recruitment agencies and the end hirers,
creating unnecessary risk and distrust in the system.
The government’s solutions, set out in the latest consultation (closing on 22/08/23),
are various options for regulating umbrella companies. The problem is that all of these
options push further risk and responsibility onto the supply chain, and recruiters in
particular.
A race to the bottom

Recruiters have been trapped in the middle ever since the new IR35 rules came into
effect in April 2021, forcing many contractors to work under the PAYE of umbrella
companies. The new legislation left agencies educating clients about the rules, while
trying to manage additional compliance in their new supply chains, all on slimmer and
slimmer margins. >
A fundamental issue with the system is that poor margins for the umbrella company
can leave workers to shoulder the cost through opaque service charges or payroll
practices known as ‘skimming’. This model inadvertently pushes workers to seek
cheaper services or perceived better take home pay, fuelling an environment where
poor practices can thrive.
Unscrupulous umbrella companies often resort to creating a perception of better take-

home pay to attract these cost-conscious workers. However, this perceived advantage
can mask the underlying non-compliant practices, potentially exposing the workers,
recruitment agencies and end hirers that utilise these umbrella firms to significant risk.
Through the current consultation’s proposed debt transfer model, agencies could soon
find themselves directly liable for engaging with umbrella companies that are deemed
to be non-compliant. While this may have the desired effect of incentivising supplier
accreditation, it puts pressure on an already strained supply chain that may lead to
even more ‘creative accounting’.
A better way forward

What concerns me, is why UK policy makers are ignoring a solution that is common
practice across the rest of the world. The established practice of the international
staffing industry is The Employer of Record (EOR)/Agent of Record (AOR) structure.
In all of the countries that People2.0 operate in, only one doesn’t use it: the UK. >
In this setup, the organisation seeking to outsource its employment and payroll
responsibilities directly pays for the service. The cost typically includes compliance
checks, onboarding, payroll, and funding. There is no special calculation or different
way of processing PAYE, thereby offering a transparent and straightforward approach.
In this way, EOR/AOR eliminates the need for workers to bear the costs, as the
outsourcing organisation covers the service fees. It ensures a cleaner, more
transparent payroll process, minimising room for non-compliance and deceptive
practices.
Incorporating an element of risk transfer, similar to IR35, can further enhance the
robustness of the EOR/AOR model. The outsourcing business would be liable if they
engage an EOR/AOR found to be non-compliant, thereby creating a strong incentive
to work with reputable and compliant providers.
This ‘flow-back’ of liability reinforces the responsibility of the engaging business to

ensure due diligence in their choice of EOR/AOR and helps to build a compliant,
transparent, and more equitable recruitment ecosystem.
Advocating for change

It’s time for the UK to move away from the problematic umbrella company market and
align with international best practices. The EOR/AOR model, tested and proven in the
global staffing industry, presents a comprehensive and effective solution.
By adopting the EOR/AOR structure, the UK could create a transparent, compliant,

and efficient recruitment sector that protects the interests of all stakeholders –
businesses, workers, and recruitment firms alike. This transformation would position
the UK staffing industry at the forefront of compliance, innovation, and worker welfare.
People2.0 is the world’s leading enabler of global, mobile, flexible and remote work
arrangements. Andrew Fahey was formerly CEO of Brookson Group, which has been
providing services to UK contractors, recruitment sector and contingent labour supply
chain for over 20 years. n

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The voice for the global staffing industry

VIEW THE MAGAZINE ONLINE | www.theglobalrecruiter.com/digital-magazine/

The act of recruitment itself could be see to operate in a similar

In this issue of The Global Recruiter we continue our Compliance

Publisher: Gary King Digital Communications: Leigh Abbott

Subscribe for free: www.theglobalrecruiter.com

Red flags to be aware of: What can recruiters do?

Exemplary employment practice is essential throughout the whole recruitment

“Although it is yet more red tape for compliant

Let’s begin with a simple question:

“How do I conduct due

“The work that SafeRec is doing for the industry is ground-

How is this achieved? Why is the solution designed for

For more information about

For more information about WTT

List of SafeRec Certified Umbrella

Link to the government

But what does this mean for recruitment businesses?

l Defining what an umbrella company is

We welcome the government’s proposal to regulate umbrella companies through

Regulation and recruitment firms

Recruitment company risk

Five years have passed since the

Risks for your agency

Recruitment agencies had to make

l The intermediary’s legislation

These legislative provisions were

2. Your potential risks in the future

3. Sustainable options for resolving Tax liability

“The government is aware of innovative analysis of the workers being supplied

On 9th March 1999, the Inland Revenue issued a press release

DON’T SAY ‘INSIDE IR35’

RIGHT HERE, RIGHT NOW

The evolution of compliance technology

The power of real-time compliance

Any attempt to circumvent compliance becomes impossible, as the system operates

Temp recruitment agencies’ challenges and technological solutions

Technology is offering solutions to mitigate these regulatory burdens. Numerous

What should you do as an agency?

Recruitment agencies need to embrace partnerships with tech companies to navigate

As part of recruitment, pre-employment checks, ascertaining the right to work in the

l Manual Right to Work checks

Manual right to work checks

Online right to work checks

Employer checking service

Digital right to work checks

Outsourcing right to work checks to third parties

Immigration changes announced on 17 July 2023

ENHANCE COMPLIANCE WITH

Of course, there’s a slight difference in the legal requirements of recruitment companies

What are digital Right to Work checks?

What are the benefits for recruiters?

l Efficient, on-going compliance from anywhere.

l Flexibility to meet seasonal demands.

l A professional and transparent check.

l An easier way to stay on top of compliance.

GETTING THE RIGHT RIGHTS

In March, the Government implemented a set of changes to the Employer’s Guide to

How should employers prepare?

For more information, visit: