Why not all Agency Direct Engagement providers offer fully compliant payroll services…

While Direct Engagement providers offer several advantages for managing agency workers, not all providers are the same when it comes to guaranteeing fully compliant payroll services.

21 November 2023

 – David Jones-Stanley, Customer Operations Director, Liaison Workforce

Agency Direct Engagement (ADE) providers offer flexible and cost-effective solutions for connecting NHS organisations with framework-approved agencies and workers. These providers act as intermediaries; managing tasks such as payroll, benefits, and legal compliance on behalf of the hiring organisation. However, it is crucial to understand that not all ADE providers offer fully compliant payroll services, and therefore, it is important to understand the differences and select the right one for your organisation.


Understanding Compliance

Ensuring payroll compliance is of utmost importance for any NHS organisation engaging agency workers. Compliance includes adherence to HMRC regulations, employment laws, and worker contracts. Failure to comply with these regulations can result in legal and financial consequences for both the hiring organisation and the agency worker.


Not all ADE Providers are equal

While most ADE providers offer convenience and ease of managing agency workers, their approaches to compliance can vary significantly.

Here are a few reasons why not all providers can guarantee a fully compliant payroll service:


  1. Lack of Expertise

Some ADE providers may lack in-depth knowledge of local and national regulations. This knowledge gap can lead to errors in payroll calculations, misclassifications of workers, and potential non-compliance with legal requirements. At Liaison Workforce, all of our payroll experts are trained to the highest standards and are accredited via The Payroll Centre.


  1. Poor Technology Infrastructure

Effective payroll management requires robust and secure technology systems. Not all ADE providers prioritise investing in advanced payroll systems, leading to potential data breaches, inaccuracies, and compliance issues. Here at Liaison, we have invested in technologies to deliver Daily Pay and HMRC-compliant payroll.


  1. Inadequate Onboarding Process

Thorough onboarding processes are essential to collect detailed information about agency workers. This includes HMRC forms, worker agreements, and other necessary documents. Inadequate onboarding processes and incomplete documentation can lead to payroll mistakes and non-compliance down the line.


Choosing the Right ADE Provider

Considering the potential repercussions of non-compliance, it is crucial to choose an ADE provider that prioritises and guarantees fully compliant payroll services. Here are a few factors to consider during the selection process:


  1. Expertise and Track Record

Look for providers with a strong track record in payroll management and compliance. Consider their experience, certifications, and their understanding of local and national policies and procedures.


  1. Technology and Infrastructure

Ensure the provider has a secure and technologically-advanced infrastructure to handle all payroll-related aspects efficiently, and with minimal room for error or data breaches.


  1. Comprehensive Onboarding Process

Evaluate the provider’s onboarding process to ensure they collect all necessary information, verify worker classification, and put in place systems for accurate and compliant payroll management.


  1. Transparent Communication

Open and transparent communication is crucial for a successful engagement. Consider providers that prioritise transparent interactions and offer ongoing support to address compliance concerns promptly.


While Direct Engagement providers offer several advantages for managing agency workers, not all providers are the same when it comes to guaranteeing fully compliant payroll services. Understanding the potential risks and consequences of non-compliance is critical for selecting the right provider.


When NHS organisations prioritise expertise, technology infrastructure, comprehensive onboarding processes, and transparent communication, they can ensure their ADE provider aligns with their compliance requirements and minimises any potential legal and financial risks.


Liaison Workforce was recently named winner of The Rewards’ specialist awards in the category of Specialist HR and Payroll Provider, which highlights those who have gone above and beyond to help the workforce; something that Liaison prides itself on in its continued work to support the NHS. Find out more here.

Speak to us about your ADE requirements.

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