Navigating what’s next: what today’s compliance panel means for agencies and MSPs

By Alex Moore, Chief Sales Officer, Sapphire

Chairing the recent panel at the Recruitment Agency Expo highlighted the fact that agencies and MSPs are entering a more demanding compliance environment – and those that respond early will be in a far stronger position.

The conversation around JSL, the Employment Rights Act and the government’s consultation on Modernising the Agency Work Regulatory Framework is not just about legal change. It’s about how agencies and MSPs build resilient supply chains, protect contractor experience and give clients confidence that the right controls are in place.

What stood out from today’s discussion is that compliance can no longer sit in a silo. The JSL rules increase supply-chain risk for agencies, MSPs and sometimes End Clients, making documented due diligence, financial checks and audit trails important to reduce potential risk. At the same time, broader employment changes are leading more businesses to look closely at how they engage and support temporary workers.

That creates pressure, but it also creates an opportunity. As scrutiny increases, strong partnerships matter more. Agencies and MSPs that review their PSLs, strengthen oversight, and partner with transparent, accredited and operationally consistent providers will be better placed to adapt.

It was great to explore these issues alongside Hannah Morrison (Brabners), Paul Chamberlain FRSA (JMW Solicitors), Rebecca Seeley Harris (Re:Legal Consulting) and Sebastian Sauca (SafeRec). Each brought a valuable perspective to a discussion that is becoming more urgent for the recruitment industry.

At Sapphire, we believe this is the moment for practical action, not panic. Agencies and MSPs need partners that combine compliance expertise with a strong contractor experience, because protecting workers and protecting your business increasingly go hand in hand.

The market is changing. The real question is how prepared your supply chain is for what comes next.