Communicating PSL changes without the friction

This is a guest blog by REC business partner, Liquid Friday

As the supply chain responds to increased accountability and risk under joint and several liability, PSLs across the market are being tightened. Many agencies are now working only with a controlled list of umbrella companies who meet stringent compliance and transparency standards.

While these changes mean greater protection and safeguards for contractors, they can still bring uncertainty if not handled carefully.

Strengthening trust in your PSL

It's important to recognise what contractors actually care about. For most, it comes down to a few things: getting paid correctly and on time, receiving good service, benefits that add real value and avoiding unnecessary hassle.

Being asked to switch umbrellas can feel like the opposite of that - but it is possible to own the narrative. The key is communication. PSL changes can and should be positioned positively - this is about raising standards and ensuring pay and taxes are processed correctly and compliantly.

Reinforce that enhanced due diligence is in place and that contractors can be confident in how their pay, deductions and employment rights are managed. If these communications are handled well, they can actually strengthen relationships and trust between contractors, your business and your PSL partners.

Seven tips for a smooth contractor transition

1. Lead with the “why”

Clearly explain that changes are being driven by compliance, protection and transparency, not cost-cutting or disruption.

2. Lean on your PSL partners

Your chosen umbrella partners should be geared up to manage smooth and fast onboarding. This includes communicating directly with contractors to reduce pressure on your internal teams.

3. Reassure on pay consistency

Set expectations early: compliant umbrella companies operate within the same tax rules, so take-home pay should be comparable.

4. Simplify the process

Emphasise that switching is straightforward - essentially leaving one employer and joining another, with minimal disruption.

5. Signpost key steps

Highlight practical points like P45 transfer, tax codes, and holiday pay to remove uncertainty upfront.

6. Promote the benefits

Contractors will engage more positively if they see tangible value—reliable payments, responsive support, and benefits they’ll actually use.

7. Provide clear guidance

Offering dedicated information and guidance on switching can demystify the process and reduce resistance significantly.

Ultimately, agencies that combine clear, positive messaging with strong umbrella partners will find PSL changes far easier to implement, both operationally and from a contractor experience perspective.

Point your contractors to Liquid Friday’s Switcher’s Guide

To support you and your contractors through this transition, we’ve created a practical Switcher’s Guide - a free resource designed to make moving between umbrella companies simple, transparent, and hassle-free.

It covers everything contractors need to know, from what happens when they switch to key things to look out for, helping you reduce queries, minimise disruption, and keep your workforce reassured throughout the process.

Download your free copy today and let Liquid Friday do the heavy lifting when it comes to contractor communication.

We're here to support agencies through the move to a streamlined, strengthened PSL - helping ensure your teams stay efficient while your contractors experience a smooth, well-managed transition.

Get The Switcher's Guide

Learn more about Liquid Friday