Umbrella company reference checking — compliant contractor references before onboarding

Umbrella companies as employers — reference checking obligations

An umbrella company is the legal employer of the contractors who work through it. As an employer, the umbrella company has the same pre-employment checking obligations as any other employer — including obtaining employment references for the workers it employs. In practice, many umbrella companies treat reference checking as the responsibility of the end client or supplying agency rather than their own — creating a compliance gap that becomes relevant if a contractor causes harm or a dispute arises about the adequacy of pre-employment checks.

Reference checking for contractors in regulated sectors

Umbrella companies that process contractors working in regulated sectors — care, healthcare, education — face particularly acute reference checking obligations. A contractor working through an umbrella company in a CQC-registered care setting is subject to the same Regulation 19 safe recruitment requirements as a directly employed care worker. The umbrella company's position as legal employer means it cannot outsource this compliance obligation to the supplying agency or end client.

RefAssure enables umbrella companies to complete compliant written references for every contractor onboarded regardless of sector. Sector-specific templates for regulated industries are available alongside standard employment reference templates for commercial contractors. Automated chasing ensures references are returned quickly enough to avoid delaying contractor onboarding. From 99p per reference with no subscription.