Can my Recruitment Agency refuse to use my Umbrella Company?

(2 minutes to read)

Contractors who are new to the flexible-working sector may be confused about their rights when it comes to choosing an umbrella company, as some recruitment agencies might want you to use a specific supplier.

Why would a recruitment agency want you to use their chosen umbrella company?

A recruitment agency can refuse to use your chosen umbrella company for a number of reasons.

Understandably, the agency might want to ensure the contractor is using an umbrella that can be trusted and shares the same ethos as them. It helps them to manage their risk and guarantee that all umbrella partners conform to a set benchmark of compliance.

Of course, the reason could be coming from a commercial point of view whereby the agency will benefit financially due to recommending a particular umbrella to the contractor.

Should you use your recruitment agency’s chosen umbrella company?

Some agencies might only work with one umbrella, (which obviously doesn’t give you much choice), however, many will use PSLs (Preferred Supplier Agreement) allowing you to choose from a selection of approved suppliers.

Most agencies now only use FCSA accredited umbrellas, so it’s worth ensuring that this is the case with yours.

Other signs of a good umbrella company include:

  • Good reviews</br/>Look at reviews to get an idea of what people really think of the umbrella company you’re thinking of working through.
  • Providing a personal service
    Having a go-to person who deals with all of your work is so important for a hassle-free umbrella experience.
  • Been in business for a long time
    Experience is key with any business, giving you peace of mind that they know what they’re doing.
  • Awards
    Recognition for the work they do is always a comforting factor when it comes to choosing the best umbrella company – make sure that their awards are fairly recent too.

Read our Best Umbrella Company page for more advice on this.

We hope that you have found this page helpful and it has answered some of your questions. If you’d like to sign up or need any further information, please call one our friendly experts on 01206 591 000.

You may also like to read

Still thinking about if you should join Dolan Accountancy?

Give us a call on 01206 591 000 or email


One week margin free when you sign up with Contractor Umbrella today!
Hurry - Deal ends at midnight tonight.
      Terms and Conditions: 
1 week margin free or £25 reduction on monthly margin. Online registration form must be completed by midnight 6th December 2019. Payment must be processed and margin redeemed by 31st December 2019.