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Tips from Ovio: A practical guide to Joint and Several Liability
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This is a guest blog from REC Business Partner, Ovio
The recruitment sector is entering a period of profound regulatory change. With the introduction of Joint & Several Liability (JSL) from April 2026, agencies and end clients may be held financially responsible if PAYE or National Insurance obligations are not properly met anywhere within the labour supply chain.
This new framework brings a level of accountability not previously seen in the industry. Relying on documentation alone is no longer enough - agencies must be able to demonstrate transparency, verify compliance independently, and partner with providers who offer genuine financial and operational resilience.
At Ovio Solutions, we believe compliance should be an active partnership, not a leap of faith. That’s why we’ve invested heavily in systems, governance, and independent assurance to help agencies navigate this new era with confidence.
Below, we outline the key measures underpinning our approach to supporting REC members as we move into the JSL landscape.
Tips from Ovio
Building confidence through robust due diligence
Effective preparation starts with knowing exactly how workers are engaged and how payroll is delivered.
Ovio operates a fully PAYE‑based employment model for all workers. This ensures:
- Every payment is treated as standard employment income
- All statutory deductions (Income Tax, National Insurance, etc.) are made correctly
- Employment status is clear, consistent and compliant
To support this, our proprietary workforce platform gives agencies a clear, structured operational framework covering onboarding, payroll processing, compliance checks, and reporting.
This level of visibility means agencies no longer have to rely on assumptions — they can see their payroll processes delivered in real time.
Independent cerification and ongoing external assurance
The industry has increasingly recognised the importance of independent validation of payroll accuracy. Under JSL, this becomes essential.
Ovio is accredited by SafeRec, the sector‑leading audit framework for compliance oversight. SafeRec independently verifies:
- Payslip calculations
- Tax deductions
- Alignment between payments made to workers and amounts reported to HMRC
This provides agencies with third‑party confirmation that payroll is being managed accurately and compliantly as a powerful safeguard in a risk‑sensitive environment.
As supply chain scrutiny increases, independent verification is becoming a core expectation for agencies assessing payroll partners. Ovio has taken steps to ensure this assurance is already firmly in place.
Seeing compliance in action
Compliance should be visible, not theoretical.
To help agencies understand how our processes work day‑to‑day, we have produced a short video walkthrough demonstrating the Ovio workforce platform in practice. It shows how agencies can monitor payroll delivery, compliance controls, HMRC reporting, and the governance structures that support them. REC members can watch the overview here.
Our platform was designed specifically with the new JSL expectations in mind — putting transparency, data clarity, and process oversight at the heart of every payroll cycle.
Delivering transparency around worker pay
Transparency is central to demonstrating good governance under JSL.
Ovio provides agencies and workers with complete clarity through:
- Detailed, transparent payslips
- Clear presentation of gross pay, statutory deductions and net pay
- A payroll model where all worker remuneration is treated as employment income
For agencies, this provides essential evidence of compliance at worker level and supports internal due diligence, audit trails, and supply‑chain reporting.
The removal of ambiguity is critical. Under JSL, transparency isn’t just helpful — it’s mandatory.
Preparing the industry for 2026 and beyond
The transition to Joint & Several Liability represents a step change for the recruitment sector. Agencies must now move beyond traditional compliance assumptions and work with partners who can demonstrate operational integrity and independent assurance.
Ovio’s approach combining PAYE clarity, robust governance, SafeRec verification, and full operational transparency gives recruitment businesses the confidence they need to thrive in this new environment.
The message is simple: compliance must be visible, verifiable, and independently validated. Ovio is ready and we’re helping the industry get ready too.
Learn more about Ovio
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