The Cost of Compliance: Are Commission Structures Putting Your Agency at Risk?
As the industry tightens its focus on compliance, there’s a ticking time bomb hidden in many agencies’ incentive structures: commission payments linked to non-compliant umbrellas.
It’s no secret that some providers have been offering consultants £300–£500 per placement to push contractors into their models. But what’s often overlooked is the exposure this creates for the agency—across data protection, tax, and the Criminal Finances Act.
“It only takes one consultant acting outside of policy to put your whole business at risk. That’s why we work with agencies to build in better incentives—and better oversight.”
— Chris Fahey, CEO, AGPayroll
What’s happening now
Non-compliant umbrellas are infiltrating agencies with cash incentives
Workers are being steered into schemes without the agency’s knowledge
HMRC is watching—and the liability trail leads back to you
What you need to do
Review your commission structure: is it encouraging compliance?
Tighten contracts with consultants: include clauses on ethical conduct and data use
Invest in training: every consultant should understand the red flags of disguised remuneration
This is more than policy—it’s culture. Creating a culture of compliance protects your team, your candidates, and your agency’s future.
AGPayroll works with clients to deliver both the compliance tools and the education to help recruiters spot risks early. Together, we can raise the bar—and stay ahead of enforcement.
