03.12.2025
Compliance in Temporary Recruitment – All you Need to Know
When you’re running a temporary recruitment agency, there are a lot of things you need to think about. Even if your team is small, and your client base is compact, you have hundreds, potentially thousands of temporary workers’ profiles in your database. Sorting through them and assigning them to the best vacancies is a tricky job, but it’s what you’re best at.
But that isn’t the only thing you need to do. Staying compliant is vital for your success; any slip-ups will affect your business growth severely, with legal action a real threat.
Thankfully, with the right support you won’t have to worry about staying compliant. Even if there are legislation changes in your agency’s future, we’re here to help.
The Importance of Compliance in Temporary Recruitment
When attracting new temporary workers to your business, you need to make sure they’re looked after.
Making the decision to work on a temporary basis is a risky move for many people, even if the benefits are clear. This is because some agencies take advantage and find compliance loopholes, or ignore the complaints/concerns of their workers for as long as possible. The powers that be are working hard to stamp out these bad examples, but a lot of workers are still being affected.
By ensuring that they’re listened to and valued, as well as being given airtight contracts that they’re happy with, they’ll stick with you for the long run.
Staying compliant isn’t just for the benefit of your workers either. You need to make sure that the workers in your database have the experience and skills they include on their profile, as well as the relevant documentation and right to work in the UK.
You also need to protect your clients by making sure that the candidates are a good fit, and won’t be detrimental to the permanent team. A worker that isn’t 100% satisfied with their placement won’t give it their all, and this will reflect badly on your agency.
Ensuring your Temporary Workers are Compliant via Contracts
Most compliance checking is done via the contracts you create. This ensures that everyone is on the same page, and gives you a solid legal defence if there are any issues.
Here are some of the terms that must be included on your temporary workers’ contracts:
- That you will be acting as an employment business
- The type of contract
- Length of notice
- Pay rates
- The type of work that will be expected
- Details of holiday pay and pensions
- Confirmation that the temp worker will be paid even if your client hasn’t paid their invoice
The latter is very important, a major pain point for a lot of temporary recruitment agencies. In most cases your workers will be paid weekly, but you’ll be billing your clients on a monthly basis (sometimes longer). This leads to weeks where you might not have the funds readily available. Failure to pay your workers correctly and on time is a major breach of contract, and will ruin your reputation.
That’s why 100% Recruitment Funding is an essential part of our service. With us in your corner you’ll always have access to the funds you need if there is a gap between invoices. Workers will always be paid properly, and you’ll never have to dip into savings or other revenue sources to keep them happy.
Why Compliance is a Minefield in Temporary Recruitment
Even with a compliance checklist in hand, it’s still a tricky business.
Compliance issues are most common in new start-up recruitment agencies, as you can imagine. These plucky young teams have all the ambition and startup capital they need to succeed, but may fall into compliance pitfalls that halt their growth.
But it isn’t just the newbies either. Over the years we’ve seen dozens of well-established recruitment agencies put their foot in it, making a major compliance error that they should’ve seen coming. Standing still is the fastest way to ruin your business; you need to keep pushing forward and never grow complacent when it comes to your contracts.
The biggest issues form when there are changes in legislation. The recruitment industry is constantly evolving, such as the change in legislation for umbrella companies we talked about earlier this year. If your agency isn’t aware of these changes, you’ll be caught off guard, and will be playing catch up for a while.
Keeping tabs on the industry isn’t always easy. That’s why you need a team of temporary recruitment specialists who will help you manage any changes.
Compliance Support for Temporary Recruitment Agencies
Our all-in-one service is designed to handle the hassle of admin so you can focus on building your business. We’ll take care of:
But this is only the day to day. We also help you to stay compliant.
Communication is key to build a trusting relationship. You’ll have two points of contact, your payroll account manager and your credit controller. They’ll always be on call to answer questions, and will provide regular updates for yourself and your clients so you know all that’s going on in your business.
Unlike other recruitment funding companies, we also keep our finger on the pulse of the industry itself. Many of our team have a recruiting background, and we’re always at recruitment expos and events to learn the latest. With this information, we’ll know about any compliance changes well ahead of time, and will inform you so we can all adapt accordingly.
Clients choose us because we care about their success, and collaboration is the way to boost your business and ensure you never have to worry about compliance mishaps.
If you have any questions about us, our service, or recruitment compliance, please don’t hesitate to get in touch. We look forward to hearing from you!