A contractor has questioned whether an agency using an RPO company is legitimate.
Recruitment process outsourcing (RPO) is one issue contractors may need to deal with during their careers, and there is some confusion over whether such companies are legally required to pay them.
A Contractor UK reader asked whether his recruitment agency, which uses an RPO company to pay its workers, is obeying the rules by absolving itself of the responsibility to pay him, particularly as the RPO is not party to the contract.
Responding, Crawford Temple, managing director of Professional Passport, said such arrangements are quite common, and are often designed to reduce risks and help contractors to get paid faster.
“In the vast majority of cases, the recruiter will use invoice discounting or factoring services to fund their cash flow requirements as they need to regularly pay money out,” he explained.
It follows news that the government is planning to introduce self-assessment checks for UK residency, which could affect contractors working abroad.