End Hirers2019-11-26T17:50:45+00:00


Compass provides contractor engagement and payment services to agencies, to individual contractors and direct to end hirers. Our management team have extensive experience providing staffing supply chain solutions to end hirers of all sizes, including FTSE100 companies.

We understand that many end hirers need to retain a flexible workforce that can scale or contract with business cycles. Unfortunately, legislation recently enacted, and that proposed for 2020, threatens to disrupt this flexible workforce.

Compass introduced it’s PEO solution in response to two substantial developments in employment and tax legislation.

Firstly, the extension of IR35 ‘off payroll’ rules to the private sector will impact on the way over half a million contractors operating their own Personal Service Company can be contracted after April 2020, with liability for non-compliance passing up the recruitment chain to end hirers.

Secondly, the Government’s response to the Taylor Report (referred to as ‘The Good Work Plan’) has introduced significantly more complex legal and administrative requirements for recruitment agencies and end hirers who have direct relationships with contractors. Two key compliance risk for recruiters and end hirers are :

  • The need to meet new transparency of employment particulars (including a key facts page of certain mandatory information).
  • Enforcement of rules to ensure contractors receive all holiday pay due from an assignment and financial penalties where complaints have been raised. We will manage contractors employment – paying all taxes and managing holiday pay.

How does it work?

  • Compass PEO enables you to pay contractors PAYE with a clear and simple payslip.

  • Compass are the employer and provide workers with a full contract of employment.

  • Compass is responsible for all statutory employer obligations, such as establishing Right to Work and handling any disputes which result in employment tribunals.

  • This provides all the benefits of worker employment, but with a simple charge back of employment costs to agency or end hirer, so avoiding the confusion that workers may experience with umbrella models.


Agencies and end hirers will want to ensure compliance with the substantial new employment and tax rules without a) disadvantaging skilled and valued contractors, and b) suffering a significant new administrative burden. Under Compass PEO:

  • There is no charge to contractors. Agencies or end hirers are charged a simple admin fee.
  • Contractors currently working under their own Limited Companies (sometimes known as ‘Personal Service Companies’) are made compliant under a simple and streamlined invoicing process with one invoice for all.
  • There is no disruption to agency/contractor relationship.
  • Contractors receive a traditional PAYE slip, reducing the confusion sometimes associated with an umbrella payslip.
  • Contractors are no longer caught by IR35 and are able to take PEO to any future assignment, if applicable, with continuity of employment.
  • Recruitment agencies and end hirers enjoy employment status compliance (for them and their long-term contractors) plus protection of their reputation.
  • For recruitment agencies, Compass PEO is an excellent addition to their proposition to new clients – ensuring compliance in a demanding new legislative landscape.