Reply to: Hays PSL (Preferred Suppliers List)

[TheFaQQer]

I work through Hays, and my current "Umbrella" has been removed from their PSL - forcing me to change to a new one.

Does anybody know which Umbrella's ARE acceptable?

Are you saying that Hays are making you change your umbrella, but won't tell you who you can use instead??

[northernladuk]

Man up, sack the brolly and do it properly. If you are going to hide behind easy solutions you have to expect this kind of thing.

The more layers in your situation the more chance of extra hassle.

[LisaContractorUmbrella]

I work through Hays, and my current "Umbrella" has been removed from their PSL - forcing me to change to a new one.

Does anybody know which Umbrella's ARE acceptable?

I find it offensive that Hays have the right to tell me which payment solution to use, but since I do want to stay in my current contract, I have to bow to their demands...

Purely out of curiosity, which company was that? Are you asking which umbrella companies are acceptable or which companies Hays thinks are acceptable?

[Nathan SJD Accountancy]

Ask Hays to provide you with a list to choose from.

[Sander Koop]

Does anybody HAVE the Hays PSL?

I work through Hays, and my current "Umbrella" has been removed from their PSL - forcing me to change to a new one.

Does anybody know which Umbrella's ARE acceptable?

I find it offensive that Hays have the right to tell me which payment solution to use, but since I do want to stay in my current contract, I have to bow to their demands...

[sal626]

When I say “Hays IT”, I actually mean the IT department of Hays…i.e. I worked for Hays company itself.

But I think Hays also brand the department that deals IT jobs as “Hays IT”…in which case, it is the same company…

[curtis]

I had Hays ring me only a few months ago, told me about a role then asked 'what umbrella do I use?'

When I told him I then got told 'ahh that may be an problem as we have preferred umbrellas we like to use' then proceeded to tell me how so many umbrellas have gone out of business and the ones they use have been checked.

The job he was ringing about was not suitable anyhow but the call was ended by him saying that any future business may be difficult given I use a different umbrella.

To be honest unless I really really had to I would not use Hays anyhow as I have heard such bad things about them, more bad than good. One question though is 'Hays' the same as 'HaysIT'?

[sal626]

To be fair, the consultant is probably presuming that the contractors know what their options are and they aren't in the business of advising people about tax avoidance or trading structures. If you have to ask, then they'll just recommend the contractor goes umbrella - an easy life for all concerned.

Fair point, but I hadn’t even asked…it was literally, “congrats you got the role. Starting date, blah blah, …You have to use one of 4 umbrellas, blah blah.”

In hindsight, totally my mistake for not asking about limited…but the way the consultant made it sound, it was basically the umbrella way or the highway.

Live and Learn I guess…

[Wanderer]

Steven, my gripe is not that Hays have a PSL, but the fact that the particular consultant I was dealing with, neglected to mention that I also have the option of using a limited.

To be fair, the consultant is probably presuming that the contractors know what their options are and they aren't in the business of advising people about tax avoidance or trading structures. If you have to ask, then they'll just recommend the contractor goes umbrella - an easy life for all concerned.

[Steven@Parasol]

Steven, my gripe is not that Hays have a PSL, but the fact that the particular consultant I was dealing with, neglected to mention that I also have the option of using a limited.

It was more like; “choose one of these four…by the way…companyABC are quite good”….and no, its wasn't Parasol.

Thanks Sal, completely understood your gripe, was chipping in from a PSL/referals perspective.

[sal626]

Steven, my gripe is not that Hays have a PSL, but the fact that the particular consultant I was dealing with, neglected to mention that I also have the option of using a limited.

It was more like; “choose one of these four…by the way…companyABC are quite good”….and no, its wasn't Parasol.

[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.

[TestMangler]

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

[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…

[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…