Compliance or consolidation at MedicsPro?
A tightening noose or genuine risk control?
The compliance drumbeat ahead of April 2026 is starting to sound less like prudence and more like choreography. This week’s example comes via MedicsPro, which has issued firm instructions to contractors: set up with a new umbrella by 20 March, submit final timesheets for any non preferred supplier list providers by 26 March to be processed on 27 March, and expect a final payment on 31 March. Going forward, MedicsPro says it will only work with SafeRec accredited umbrellas on its PSL, pointing contractors towards MyPay, Sapphire, ForeTwo, Paystream and My Max as a starting point.
What protection really means under JSL
MedicsPro’s communication highlights that SafeRec accreditation ensures clarity when it comes to payments to protect all parties moving forward. It is hard to miss the weight of that word protect in the current climate. Under the April 2026 Joint and Several Liability reforms, HMRC will be empowered to pursue agencies for unpaid PAYE where an umbrella fails to account correctly. Agencies do face genuine financial exposure, and the instinct to manage that risk is understandable. Yet accreditation is not a legal shield. No accreditation scheme provides protection from Joint and Several Liability exposure. Accreditation may help identify indicators of compliance or non compliance, but it does not transfer or insure risk. Suggesting that it protects all parties risks overstating what the badge delivers and could mislead contractors into thinking the hazard has been neutralised when it has not.
A simple truth bears repeating. Risk can be mitigated, monitored, and managed - but not magicked away by a certificate.
Law, choice and the PSL squeeze
The Conduct of Employment Agencies and Employment Businesses Regulations 2003 provide the legal framework for agency conduct. Regulation 5 prohibits making the work finding service conditional upon the use of other paid for services. The Employment Agency Standards Inspectorate guidance is clear that workers should not be forced to use a specific umbrella company. Requiring contractors to abandon an existing compliant and previously accepted umbrella in favour of a restricted PSL, particularly where there has been no finding of non compliance, looks like a material restriction on choice that invites scrutiny. Agencies frequently argue commercial necessity or tax risk to justify mandates. The problem is proportionality. Where the policy funnels large numbers of workers into a small cluster of providers, the justification must be robust, documented, and fair.
There is also a market consequence. When only the largest umbrellas secure PSL positions, smaller compliant providers are systematically pushed to the margins. Over time that can reduce diversity, raise barriers to entry, and encourage fee alignment across dominant firms. The sector risks drifting towards an oligopolistic structure closely intertwined with major recruitment businesses, leaving contractors with less leverage on pay, costs, and service quality.
The stakes for agencies and contractors
Agencies are staring at April 2026 with reason. If an umbrella collapses or misaccounts, HMRC may now track upstream to the agency. But exposure alone does not automatically validate sweeping mandates. The more coercive the approach, the more likely contractors will resist and excluded umbrellas will challenge. If agencies continue down this path without transparency, proportionality and clear legal grounding, the consequences may extend beyond industry backlash and regulatory scrutiny. Displaced umbrella companies and affected contractors may seek formal legal remedies, including challenges under the Conduct Regulations or competition principles, potentially escalating disputes into costly and highly public proceedings. What begins as a compliance strategy could quickly evolve into contested litigation and reputational damage. MedicsPro’s deadlines, SafeRec-only stance and named starting options will be read by many as a model others plan to copy. If so, pressure will build quickly across the market.
Contractors can ask for the specific legal basis for any restriction, sight of risk assessments, and clarity on how any PSL was selected. Agencies can reduce friction by publishing criteria, opening a pathway for additional compliant umbrellas to join, offering transition support, and avoiding language that implies risk transfer.
Contractor News commentary
Contractor News recognises the heightened focus on compliance as the April 2026 changes approach. Agencies need defensible risk processes, and contractors need clear, accurate information. We encourage transparent criteria for PSLs, careful wording around accreditation, and engagement with EAS guidance. A calm, evidence led approach that balances risk management with genuine worker choice and fair competition will best serve the market in the months ahead.
