Hays PSL (Preferred Suppliers List)

[WageSlave1]

Re: Umbrella Co's

Personally, unless really desperate for money, I would reject an agency that dictated my choice of umbrella. For me that would be a pretty big warning signal that the agency was bad news. Their role is to source clients on behalf of the client; not tell me how to organise my own business.
I have never contracted through Hays, but my dealings with them to date have left me less than impressed.

Since contractors are not usually bound to their umbrella company for any fixed period of time (I may be wrong there?)

That's right, Rebecca. The contractor should be free to leave any legit umbrella at any point.

This has got to stop. Otherwise it's only a matter of time before we're forced to sign contracts at the pre-hire stage when submitting CVs disallowing us from applying for other jobs until a role they've put us forward for has been filled.

NP, it's funny you should mention this. Progressive tried to get me to do precisely that! Real IT tried to verbally do the same, although fell short of suggesting a paper contract. Both agencies now have an entry in my 'Agency Hall of Shame' database...bet that will scare them :lol

[t0bytoo]

Along with recommending 360 group, Hays also suggested Giant. Theire reputation sounds even worse.

I gave up on 360 and signed up with orange genie. They were great. For a while. Then became cr*p too.

Ltd company only for me.

[reccon]

Just wanted to point my point of view across from the agents side (although not defending anything!).

I can see why Hays would have a PSL of umbrella companies they use. It does make sense. The umbrella company pays you your money. The agency (Hays in this case) wants to make sure they are using a trustworthy umbrella company or they could have problems further down the line. Picture the scene. Contractor works on client sight, choses his own umbrella company, umbrella company fails to make payments to contractor, contractor gets annoyed with not being paid, contractor decides not to work until porblem is resolves, client is unhappy with this, agency gets it in the ear. So from this (and believe me it happens) the agency have manged to annoy there client with this problem even though it is no fault of there own. So by chosing reliable umbrellas they know they wont have this problem

Oh and they probably get referal fees from the umbrella as well!!

[contractor42]

The vast majority of recruitment agencies have a PSL of umbrella companies. These are the ones they "prefer" to do business with. Historically the agencies will push new contractors to the umbrellas on this list if asked by the contractor. Hays look like they are one of the first to try and "force" contractors to use one on their PSL. Kick backs are probably not involved here as PSL's are normally done at senior management level where there is less reliance on the odd bit of "cashback". Probably the main reasons for getting on the PSL are recognition of good service, adequate insurance provision, track record that they will pay the contractor, automation (to reduce agency costs!) etc... It also potentially stops cowboy operators. It will be interesting to see if Hays are successful.

The main reason the agencies i

Hays are mainly doing this to prevent people from using certain firms that employ tax effective structures to maximise take-home pay. Hays' legal team have 'formed an opinion' that any firm using (for example) an offshore trust is automatically breaking the law (patently untrue). They are completely rigid on the PSL list now, and I was actually kicked off my previous payroll provider. The irony is that contractors who are booted off structures that have never been successfully challenged by HMRC will likely move to using a limited company, where they know darn well they are caught by IR35. I really want to give Hays the boot, but I don't feel it's fair to my current client (yet).

PS - I too have been spammed by Hays. They give out your details including your title to outside recruiters who then call you on your (unlisted) work extension.

[LisaContractorUmbrella]

Hays are mainly doing this to prevent people from using certain firms that employ tax effective structures to maximise take-home pay. Hays' legal team have 'formed an opinion' that any firm using (for example) an offshore trust is automatically breaking the law (patently untrue). They are completely rigid on the PSL list now, and I was actually kicked off my previous payroll provider. The irony is that contractors who are booted off structures that have never been successfully challenged by HMRC will likely move to using a limited company, where they know darn well they are caught by IR35. I really want to give Hays the boot, but I don't feel it's fair to my current client (yet).

PS - I too have been spammed by Hays. They give out your details including your title to outside recruiters who then call you on your (unlisted) work extension.

Well actually, from December last year, anyone resident and working in the UK using an offshore trust is breaking the law

[contractor42]

Well actually, from December last year, anyone resident and working in the UK using an offshore trust is breaking the law

Ah, no - not really. The new legislation just says you have to pay tax on loans received from 3rd parties (such as EBTs). As ever, the workarounds will continue to evolve until the government come up with a less punitive tax regime for contractors. If you say to a perm staffer "I'll tell you what - I'll take away all of your employee benefits, fix your term of employment and tax you an extra 12% of your wage" - they'd be kinda unhappy.

[sal626]

I did a short contract for HAYS IT in 2008. Not only did they say that I have to use 1 of 4 umbrellas on their PSL, they didn’t mention that I had the choice of using limited!

I wouldn’t be surprised if HAYS consultants are getting referral fees from the 4 umbrellas…

[RichardCranium]

I wouldn’t be surprised if HAYS consultants are getting referral fees from the 4 umbrellas…

I would be utterly gobsmacked if Hays are not getting referral fees from the 4 umbrellas…

[TestMangler]

I've been using Hays on and off for 10 years (including current gig) as a Ltd and have never heard of this.

[Steven@Parasol]

I would be utterly gobsmacked if Hays are not getting referral fees from the 4 umbrellas…

We are on Hays PSL and I can confirm that we do not offer referrals to recruiters at Hays or anywhere else.

PSLs are becoming more and more of a risk mitigation tool as some umbrella companies (such as the example Lisa gave earlier) are leaving recruiters and contractors open to large liabilities for a number of reasons.

For example, if your umbrella company goes under, as far as the end client is concerned, they have paid the recruiter and that's that. The recruiter then transfers these funds to the umbrella to pay the contractor. If that umbrella disappears, the contractor hasn't been paid and the recruiter can be liable to pay twice. There is also all the bad press that comes with this and reputational damage for the recruiter and the end client. The recruiters relationship with the end-client is also damaged so its not worth it for anybody.

If the PSL has been put together based on the financial strength of umbrella companies, their business models (pay when paid instead of offering terms for example), compliance, industry codes of conduct and independent audits etc, then the recruiter is doing its best to protect themselves, the client and the contractor from some of these risks.

Also moving forward, once the Bribery Act comes into play, recomending umbrellas based on referrals could leave individuals and companies open to prosecution so this is another risk to add to the list. There are very recent examples of some of the leading recruiters now refusing to work with umbrella companies because they have offered a referral scheme.

I'm not suggesting that this sort of thing still doesn't go on, but it is a practice that is becoming more of a risk to everyone involved so the big players such as Hays will react.