Professional Passport is issuing an urgent alert to recruitment agencies and their agents regarding a concerning trend involving umbrella brokers. These brokers have been increasingly attempting to access confidential worker information, often through unsolicited approaches to recruitment agents.
“We’ve observed a troubling rise in umbrella brokers directly contacting recruitment agents,” says Crawford Temple, CEO of Professional Passport. “Their goal is to obtain contractors’ personal details, raising significant data protection concerns and potentially exposing workers to non-compliant umbrella schemes. We urge all recruitment agencies to be on high alert and ensure their agents are aware of these risks.
“Sharing contractor details without proper authorisation is a serious breach of data protection regulations,” he adds, “and agencies must recognise the potential consequences of such actions. Furthermore, agencies should be wary of high-incentive offers from brokers or less reputable umbrella companies, as these may be attempts to circumvent proper procedures.
“Some unscrupulous brokers are offering substantial incentives to recruitment consultants, including up to £500 per successful referral and a 3 per cent commission on all invoice values. These enticing offers may tempt some to share contractor details improperly. It’s crucial for agencies to reinforce the importance of data protection and ethical practices among their staff. The integrity of our industry depends on maintaining the highest standards of confidentiality and compliance.”
Professional Passport recommends that recruitment agencies implement strict policies regarding the sharing of contractor information. Agents should be educated about the risks and legal implications of unauthorised data sharing. Clear protocols for recommending umbrella companies should be established, ensuring all communications are documented via email for transparency. Agencies should also encourage their agents to report any suspicious approaches from umbrella brokers.
