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People PAYE launches to UK market

People PAYE (“People”) has launched a new model to the UK market. Buoyed on by the success of early adoption, People has already secured partnerships with several of the largest and leading agencies in the UK.


With decades of success in the US, the “Professional Employer Organisation” (“PEO”) model serves over 150,000 companies and payrolls over 3 million workers.


The importance of the way temporary workers are paid has never been under greater scrutiny. Recent legislative assault on the way these workers are paid (including the severe restriction on claiming “travel and subsistence” expenses and the recent “Off Payroll” IR35 provisions affecting the public sector) has already led to many CEO and boards of recruitment agencies, large and small, to ask whether umbrella and limited company payroll models still have any place in today’s world.


Chairman, Suhail Mirza, commented, “In terms of the recruitment landscape we have been meeting dozens of CEO’s (sic) and the story seems to be the same; political uncertainties aside the focus is on growth (amid tighter margins and increased competition) and also refining all internal process and systems to increase consultant productivity. Accordingly we are leading the launch of a PEO model for the UK market. This model, adapted from the US, is allowing UK recruiters to: - attract and retain contractors, - differentiate themselves with end user hirers in both contingent and managed service contexts and, - drive process/systems efficiencies to improve consultant output and bottom line contribution.”


Managing director, Jason Medcalf, added, “For contractors the PEO offers peace of mind of being paid PAYE- with no charge at all- and having access to a suite of benefits usually reserved for permanent employees. They also have the possibility of receiving advances on earnings from the outset. For end-user hirers, where an agency partnering with PEO to payroll contractors, there is the de facto elimination of supply chain risk and reputational risk given recent press, political and union criticism of umbrella providers.”


Mirza shared, “Investor appetite remains prevalent within the recruitment sector.

Agencies therefore need to ensure they eliminate payroll risk if they intend to attract investor interest as this is a critical issue in any deal. The PEO model delivers this result to agencies.”


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