SafeRec is a real-time payroll compliance platform designed to help recruitment agencies monitor umbrella company compliance and reduce supply chain risk. In this guide, we explain how it works, how it supports ongoing due diligence, and the questions agencies should be asking payroll providers to strengthen their compliance frameworks.
The compliance landscape is rapidly changing for recruitment agencies.
With increasing scrutiny of umbrella company arrangements and the introduction of Joint and Several Liability (JSL) rules earlier in the year, relying on annual audits, accreditations or supplier assurances no longer cuts it.
While independent standards such as FCSA accreditation play a vital part of the due diligence process, they provide only a snapshot of compliance at a specific point in time.
As an agency, you need greater visibility into what’s happening across your supply chain, and you need it in real time.
That’s where SafeRec comes in.
What Is SafeRec?
To put it simply, SafeRec is a compliance platform made for recruitment agencies, managed service providers (MSPs), end clients, and umbrella companies.
Its purpose is straightforward: to provide independent, real-time verification that payroll taxes are being calculated, reported, and paid correctly throughout the labour supply chain.
What separates it from traditional due diligence methods is that instead of relying on static documents or annual reviews, SafeRec uses technology to continuously monitor payroll compliance. That in turn gives agencies like yours greater transparency and confidence in their umbrella partnerships.
As these compliance requirements evolve, SafeRec is becoming an important tool for agencies looking to reduce risk and demonstrate robust governance.
How Does SafeRec Work?
SafeRec combines payroll data, payslip audits, and HMRC reporting information to give you a real-time view of compliance.
The platform analyses payroll activity to verify that:
- PAYE and National Insurance contributions are calculated correctly
- Taxes have been reported accurately through RTI submissions
- Payments have been made to HMRC
- Contractor payslips align with expected deductions
- Umbrella companies continue to meet ongoing compliance requirements
Unlike traditional methods, SafeRec doesn’t rely on a one-off review. Instead, your agency receives continuous oversight of its supply chain.
This creates a handy, auditable trail of compliance evidence that can be used to reassure clients, protect workers, and support internal governance processes.
Why Should Recruitment Agencies Care About SafeRec?
The risks associated with non-compliant umbrella companies have increased significantly in recent years.
Things such as hidden tax avoidance schemes, disguised remuneration arrangements, and payroll inaccuracies can expose agencies to:
- Financial penalties
- Reputational damage
- Loss of client trust
- Contractor dissatisfaction
- Regulatory scrutiny
The introduction of Joint and Several Liability raises the stakes even higher.
Under JSL rules, your agency could be held liable for unpaid taxes if an umbrella company in your supply chain fails to meet its obligations.
This means choosing the wrong payroll partner could create serious financial and operational risk.
SafeRec helps you go from reactive compliance to proactive risk management.
SafeRec and Joint and Several Liability
Before JSL, responsibility for payroll compliance largely sat with the umbrella company. Now, however, that responsibility extends all across the supply chain.
If an umbrella company fails to pay the correct PAYE or National Insurance contributions, HMRC may pursue other parties. That could include your agency and even, in some circumstances, your end clients.
This means that as an agency you must be able to demonstrate that you’ve taken reasonable steps to assess and monitor your supply chain.
SafeRec supports this process by giving you ongoing visibility into payroll compliance, rather than relying solely on annual certifications or contractual assurances.
While no technology can remove risk completely, real-time monitoring can help you identify issues earlier and keep evidence of the due diligence you’ve carried out.
For a deeper look at the implications of the new legislation, read our JSL whitepaper.
How SafeRec Supports Due Diligence
Effective due diligence isn’t just a one-time exercise anymore.
Recruitment agencies like yours need processes that combine initial supplier assessments with ongoing monitoring.
SafeRec can strengthen your due diligence frameworks by helping you:
- Validate payroll accuracy in real time
- Monitor ongoing compliance performance
- Maintain a clear audit trail
- Identify potential issues before they escalate
- Demonstrate compliance to clients and stakeholders
- Support supplier review processes
However, SafeRec should form part of a broader compliance strategy rather than replace it entirely.
You should also assess:
- Employment contracts
- Insurance arrangements
- Financial stability
- Accreditation status
- Employment rights compliance
- Governance processes
For a practical framework, check out our 2026 Due Diligence Checklist.
Questions Agencies Should Ask Payroll Providers
Whether or not a provider uses SafeRec, you should ask robust questions before adding any umbrella company to your preferred supplier list.
Key questions include:
- How do you demonstrate that PAYE and National Insurance contributions are paid correctly?
- What real-time reporting or audit capabilities do you provide?
- How often are your compliance processes independently reviewed?
- Can you provide evidence of ongoing payroll verification?
- What accreditations or certifications do you hold?
- How do you identify and manage compliance risks?
- What controls are in place to prevent tax avoidance schemes?
- How do you support agencies preparing for JSL requirements?
- What documentation do you provide to support supply chain due diligence?
- How quickly do you notify partners about compliance issues or changes?
How the provider answers these questions will reveal whether they’re truly committed to transparency.
If you’re looking for a detailed overview on selecting and managing umbrella partners, explore our comprehensive Umbrella Company Guide.
SafeRec FAQs
Is SafeRec mandatory for recruitment agencies?
No, you’re not legally required to use SafeRec.
However, as compliance expectations increase and JSL rules put greater responsibility on agencies, businesses are smart to use SafeRec to enhance their due diligence processes and gain greater visibility into their supply chains.
Does SafeRec replace due diligence?
No. SafeRec should form part of a wider compliance strategy instead of replacing it entirely.
Even though it provides ongoing payroll monitoring and real-time compliance insights, as an agency, you should still be assessing areas such as accreditation status, employment contracts, insurance arrangements, governance processes and financial stability.
Does SafeRec replace FCSA accreditation?
No.
FCSA accreditation and SafeRec serve different purposes, and as such, work best together.
FCSA accreditation assesses an umbrella company’s processes and compliance standards through periodic audits, whereas SafeRec provides ongoing payroll monitoring and real-time verification.
It’s a great idea to use both, because together they can give your agency a more comprehensive view of supply chain compliance.
How does SafeRec support Joint and Several Liability compliance?
SafeRec helps your recruitment agency show that you’ve taken reasonable steps to monitor payroll compliance across your supply chains.
By providing ongoing visibility into PAYE calculations, RTI submissions and payments to HMRC, SafeRec can help you identify potential issues earlier and maintain evidence of your due diligence activities.
What information does SafeRec monitor?
SafeRec analyses payroll data to help verify that:
- PAYE and National Insurance contributions are calculated correctly
- Taxes are reported accurately through RTI submissions
- Payments are made to HMRC
- Contractor payslips align with expected deductions
- Umbrella companies continue to meet ongoing compliance requirements
Can SafeRec eliminate compliance risk entirely?
No.
No piece of technology can remove compliance risk completely.
However, SafeRec can help your agency go from reactive compliance to proactive risk management by giving you greater visibility into payroll processes and alerting you to potential issues earlier.
Omnia Is SafeRec Certified and FCSA Accredited
At Omnia, we believe compliance should be proactive, transparent, and independently verified.
That’s why we’ve achieved both SafeRec certification and FCSA accreditation, giving our agency partners additional confidence that our payroll processes meet the highest standards of compliance and governance.
Together, SafeRec and FCSA provide a comprehensive approach to supply chain compliance. While FCSA accreditation independently assesses our systems, processes, and operational standards, SafeRec delivers real-time payroll auditing and ongoing verification to make sure we’re compliant in the here and now.
Working with Omnia gives you:
- Independently reviewed payroll systems and processes
- Compliance with recognised industry standards
- Real-time payslip auditing and verification
- Cross-checking against RTI submissions and HMRC data
- An ongoing audit trail to support due diligence and compliance monitoring
As regulatory expectations keep evolving, our SafeRec certification and FCSA accreditation provide you with an extra layer of assurance, especially if your agency is looking to greatly reduce risk and build a more resilient supply chain.
Ready to Review Your Compliance Processes?
Speak to our team to discuss your current approach to supply chain compliance.
We can help you review your existing processes, identify potential areas of risk and explore ways to strengthen your due diligence framework ahead of the latest regulatory changes.
Call us on 0118 315 1532 or get in touch to start the conversation.