Joint & Several Liability (JSL) legislation is now one of the biggest risks for recruitment agencies, labour providers, FM contractors, and businesses using temporary labour.
Under JSL, your business can be held financially liable for unpaid tax, PAYE, NIC, VAT, or fraud committed by another party in your labour supply chain — even if you were unaware.
Why JSL Exists
- To combat payroll fraud
- To prevent false self-employment
- To tackle mini-umbrella fraud
- To reduce chain-based VAT evasion
- To hold all supply chain parties accountable
Major Risks to Businesses
- Unexpected HMRC debt
- Reputational damage
- Cashflow shock
- Wider investigations
- Loss of contracts
Common JSL Triggers
- Using unvetted subcontractors
- Working with risky payroll providers
- Poor documentation
- Incorrect status decisions
- CIS or PAYE failures
How to Protect Yourself
- Full supply chain visibility
- Documented due diligence
- Proper onboarding & verification
- Status and payroll compliance checks
- A robust audit trail
- Avoiding high-risk providers
How Harbour Reduces JSL Risk
- Full due diligence on all partners
- Compliance-first payroll model
- Chain audit trails
- Strong onboarding controls
- Ongoing monitoring
- Removal of high-risk intermediaries
- One compliant operating model
Harbour ensures your business runs inside a safe, transparent, compliant ecosystem — protecting you from JSL exposure.
