Hays PSL (Preferred Suppliers List)

[SniperIII]

Firstly I would like to introduce who I am, and I make no secret of the fact that I am a director of Maxim Finance Ltd an umbrella company. We have been working with Hays for over two years and only since January this year, have come up against an issue that I would welcome both positive and where appropriate negative views.

It has come to our attention that contractors working with Hays are being told they no longer have a free choice of which umbrella company they are able to use, instead they are being told that they must select a provider on their PSL.

This is causing some angst within the contractor community, As a contractor myself I think that contractors by their very nature take the contracting route as a personal choice and feedback from a number of contractors, is they are not happy to be restrained in this way. The principle objections from contractors appear to be based on cost/value for money and their views on the less than acceptable service levels provided by imposed providers.

Whilst I appreciate some may see this as a way to promote our company, this is not its intended purpose. I have been a member of this community since 2003, and you will notice that I have not posted here in the past.

This post is to garner opinion, to see if this type of behaviour is generally acceptable within the community.
To ask whether this is an appropriate vehicle to discuss this issue.
To see if there is support from others to get this type of practice changed.

[rebekkaloos]

well I don't work with Hayes but if I was and they were trying to tell me which umbrella company to use, I wouldn't be impressed.

For a start, what makes them think you want to use an umbrella company full-stop? What if you have your own LTD?

[ASB]

Firstly I have never used hays, an umbrella, or yourself.

But, with my devils advocate hat on....

Surely it is up to Hays to determine the terms on which they do business? This is exacly what you do is it not - set your terms?

You may not like it, but surely you have to live with it.

[rebekkaloos]

not necessarily
it may be that you are right for this particular point, but generally a company cannot dictate ALL the terms on which they do business - there are rules and regulations for every industry sector.

I would argue that this is the equivalent of a "forced sale of associated product" (whereby it is illegal for, say, a travel company to sell you a holiday on the condition that you purchase their travel insurance with it). It seems to me that this is very similar - although in this case Hays are not selling you anything as such.

[John Galt]

I think you must have the wrong end of the stick here Beks. Surely Hays aren't saying that you can't use your existing brolly? Just a case of 'we recommend' isn't it - I've ignored loads of those:rolleyes

[Ardesco]

It has come to our attention that contractors working with Hays are being told they no longer have a free choice of which umbrella company they are able to use, instead they are being told that they must select a provider on their PSL.

That doesn't sound like recommend to me. To be honest i'd tell em to ferk off, plenty more contracts out there without having hays tell me how to run my finances.

* attempt to remove some of the more glaringly obvious typos

[rooney]

Re:Hays PSL (Preferred Suppliers List)

Hays can choose who they do business with and PSL's are very common in this and most other industries. Whether the contractor agrees with that is another matter and they may vote with their feet.

[freshblue]

Hays

Prove to Hays that you are not dodgy, can do what you say you can do and that you have genuine cover. A brolly I used was scamming on PI (not saying you do) but that is a major concern to an Agency.

[rebekkaloos]

Re: Re:Hays PSL (Preferred Suppliers List)

Rooney, I don't think a PSL of umbrellas is very common - I have never encountered an agency (and I have worked with a few of them, big and small) that forced me to use an umbrella from a list - they've always been happy to pay whichever company I asked them to pay. So I wouldn't say Hays' attitude is widespread in this industry

[ASB]

Becs,

Entirely true. It's not black and white. However I don't see it along the lines of sale of associated product, which is in a number of cases illegal.

The reason I don't see it that way is necause it isn't. There is no legislation that I am uware of that would cover this situation, thus you have to live with it. [Whether or not there should be legislation is a different matter though]

Two pieces of legislation may, however, cover some parts of this activity.

The first is the provisions related to unfair contract terms. There might be an arguable case for a potential contractor with Hays here. After all where is the difference in invoicing "brolly A" or "brolly B". However Hays may well be able to provide valid commercial reasons for it.

The second is that it could possibly amount to an illegal restraint of trade under the various aspects of competition legislation.

Ultimately though I would imagine Hays would be reasonably sure of the lawfulness of their actions.

I can understand the OP being highly hacked off, feeling denied the ability to market their services to a portion of their potential market.