Are You Really Compliant? How to Check If Your Staffing Supplier Is Keeping You Protected
In hospitality, compliance often falls to the bottom of the to-do list—until something goes wrong.
You might assume your recruitment partner is handling things correctly. But what if they’re not? What if your business is unknowingly exposed to HMRC fines, worker claims, or reputational risk because your supplier isn’t meeting UK employment law or REC standards?
⚠️ The truth is: compliance isn’t a nice-to-have—it’s a legal requirement.
And when something’s off, it’s your business on the line.
In this post, we’ll walk you through why compliance matters, what your staffing supplier should be doing to keep you safe, and how to run a simple check on your current provider. Because assuming everything’s fine? That’s the riskiest move of all.
Why Compliance Matters—Especially in 2025
We get it. Running a hospitality business means juggling costs, staff shortages, training, and customer satisfaction. But while you’re busy with day-to-day operations, HMRC, the Home Office, and the Employment Agency Standards Inspectorate (EAS) are quietly tightening enforcement.
Hospitality is a high-risk sector for non-compliance, especially when it comes to:
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Illegal working and Right to Work checks
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Holiday pay and National Minimum Wage breaches
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Off-payroll and tax avoidance schemes
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Misuse of self-employed status and umbrella payroll
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Lack of employment rights for temporary staff
In fact, the government has recently ramped up inspections across care, catering, and events sectors due to growing abuse of non-compliant models.
If your recruitment agency isn’t 100% compliant, you are not protected. You could face:
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Investigations and fines
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Claims for unpaid wages or holiday
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Damage to your brand and licensing risk
And here’s the kicker: many suppliers don’t even realise they’re doing it wrong. Or worse—they do, and hope you won’t ask.
Ask These Questions About Your Current Supplier
Before you trust that your staffing partner is keeping you safe, ask yourself:
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🕵️♀️ Do you know how your workers are paid?
Are they on PAYE—or pushed through umbrella companies or self-employment schemes? -
🧾 Can your supplier prove HMRC and REC compliance?
Can they show audit trails, payslips, and real-time reporting? -
✅ Are Right to Work checks carried out before placements?
Or do they assume candidates “probably” have the right paperwork? -
📜 Do temporary staff receive the correct statutory entitlements?
That means holiday pay, pension contributions, and minimum wage—no shortcuts. -
🔒 Is your recruiter accredited or monitored by a professional body like the REC?
Or do they operate unchecked?
If you’re unsure—or your supplier avoids these questions—you need to act now. Because compliance failures don’t just affect the agency. They impact your business too.
Your Simple Compliance Self-Check List
Here’s what a legally sound recruitment agency should be doing as standard:
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✅ Employing all temporary staff via PAYE, not umbrella companies
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✅ Conducting Right to Work checks before any placement
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✅ Providing payslips, holiday pay, and pensions for every worker
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✅ Meeting minimum wage legislation and working hour restrictions
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✅ Using written assignment agreements that meet EAS requirements
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✅ Regularly auditing payroll and operational processes
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✅ Holding membership with the REC or similar industry body
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✅ Educating you on your own responsibilities under UK employment law
If anything on this list is missing from your current setup—you could already be at risk.
Why “It Won’t Happen to Us” Is a Dangerous Assumption
Many hospitality employers don’t ask questions because their supplier “seems fine” or “hasn’t caused any problems.” But that’s exactly the problem.
📌 When things go wrong, you don’t get to say ‘I didn’t know.’
HMRC and the Home Office expect businesses to check their supply chain—and ignorance isn’t a defence.
That’s why it’s critical to audit your recruitment provider now, not after you’ve received a notice or a fine. By doing so, you’re not just protecting your business—you’re ensuring your workers are treated fairly and legally.
Want a Second Opinion?
If you’re not 100% confident your current recruiter is doing things by the book, it’s worth taking a moment to check. We’ve put together a free checklist and can even walk through your current compliance process with you—no pressure, no pitch.
👉 Get in touch for your free staffing compliance checklist
We’ll help you understand what good looks like—so you can make an informed choice.
