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JSL Explained: The Recruitment Compliance Time Bomb Agencies Are Ignoring | Chris Fahey, AGPayroll

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About this episode

Nitin speaks with Chris Fahey of AGPayroll about Joint and Several Liability (JSL), a significant legislative change affecting the recruitment industry that many agency owners are yet to understand. Chris explains how JSL shifts tax liability across the supply chain, from umbrella companies to recruitment agencies and end clients, and highlights the business risks of non-compliance including potential fines, business failure and legal consequences.

The episode explores why the majority of agencies remain unaware of JSL's implications, particularly those operating temp desks or placing contractors with umbrella companies. Chris discusses how SafeRec and FCSA accreditation can protect agencies, the importance of spotting red flags in payroll setups, and why end clients are increasingly demanding stricter supply chain audits. For agencies that get ahead of compliance, there are commercial opportunities to be gained.

Key takeaways

  • JSL shifts tax liability across the recruitment supply chain, creating new risks for agencies working with umbrella companies
  • Most agencies lack awareness of JSL despite its significant implications for business operations and legal liability
  • Non-compliance with JSL legislation can result in fines, business failure or jail time for agency leaders
  • SafeRec and FCSA accreditation provide protection against JSL-related risks in payroll and supply chain management
  • Agencies that understand JSL early gain a commercial advantage as end clients demand stricter compliance audits

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