Joint & Several Liability (JSL) — Navigating the New Umbrella Landscape
The introduction of Joint & Several Liability (JSL) has fundamentally changed the recruitment supply chain.
Agencies, end clients and umbrella companies now face greater accountability for ensuring workers are engaged compliantly and that the correct tax and National Insurance contributions are paid. As a result, due diligence has become a commercial necessity rather than a compliance exercise.
For umbrella companies, demonstrating transparency, robust controls and independent verification of compliance is now more important than ever.
What Does JSL Mean for Umbrella Companies?
Under the new legislation, liability for unpaid tax can extend beyond the umbrella company itself and reach other parties within the labour supply chain.
This has prompted agencies and end clients to strengthen their due diligence processes, increase supply chain scrutiny and seek greater assurance from their umbrella partners.
As a result, umbrella companies are increasingly being asked to provide evidence of:
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PAYE compliance and employment practices
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Holiday pay processes and worker communications
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Right to Work and onboarding controls
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Assignment and rate transparency
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Supply chain due diligence procedures
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Audit outcomes and compliance monitoring
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Independent accreditation such as SafeRec and FCSA
The businesses that can provide clear, documented evidence of compliance are likely to be best positioned to retain existing relationships and secure new opportunities.
How I Can Help
I work with umbrella companies, payroll providers and recruitment businesses to strengthen compliance frameworks, prepare for client due diligence and build confidence throughout the supply chain.
Compliance Health Checks
A detailed review of your current processes, controls and documentation to identify potential areas of risk and opportunities for improvement.
Due Diligence Readiness
Support in preparing the evidence, reporting and governance frameworks increasingly requested by agencies, end clients and procurement teams.
Accreditation Support
Guidance through SafeRec, FCSA and other compliance assessments, helping you achieve and maintain recognised standards.
Process and Documentation Reviews
Review of contracts, policies, onboarding journeys, payroll processes and worker communications to ensure they remain aligned with current legislation and industry expectations.
Director and Team Training
Practical training sessions designed to help directors, compliance teams and operational staff understand their responsibilities and confidently manage compliance obligations.
Ongoing Compliance Support
Through Umbrella Ready+, I provide ongoing guidance, document reviews, compliance updates and practical support to help businesses stay ahead of regulatory change and evolving client expectations.
Building Confidence in a Higher-Risk Environment
JSL has raised the bar for everyone operating within the recruitment supply chain.
The organisations that succeed will be those that can demonstrate strong governance, robust controls and a genuine commitment to compliance.
Whether you are preparing for accreditation, responding to agency due diligence requests or reviewing your compliance framework, I can help you build a practical and proportionate approach that protects your business and supports future growth.
Umbrella Ready –Be Ready For Anything.