Why Indeed Flex uses PAYE for agency workers and what It means for employers

Indeed Flex

19 December 2024

5 min read

In today’s employment landscape, businesses need staffing solutions that combine flexibility, compliance, and fairness. 

At Indeed Flex, we set the standard by employing all agency workers under the PAYE model and maintaining full compliance with GLAA and SEDEX standards. This ensures strict adherence to UK employment laws while providing robust support for both workers and employers.

Unlike gig platforms that rely on independent contractors and may bypass regulations like fair tipping laws or upcoming restrictions on zero-hours contracts, Indeed Flex offers a fully compliant alternative. Our approach ensures businesses and workers receive exceptional support without compromising on legal or ethical standards.

What makes Indeed Flex different?

1. Full compliance with employment law

At Indeed Flex, compliance isn’t just a box to tick — it’s at the heart of our model. Unlike platforms using independent contractors, our workers are PAYE employees, ensuring:

  • Statutory Rights: Workers receive holiday pay, pensions, and sick leave.
  • Alignment with the Employment (Allocation of Tips) Act: Tips are distributed fairly to all workers, including temporary staff.
  • Reduced Legal Risks: Businesses avoid the ambiguity and liabilities of gig worker classification.
  • National Insurance Contributions: Automatically deducted for tax compliance and to ease administrative burdens on

     

2. Transparent and fair pay

We prioritise transparency and fairness in compensation:

  • All workers participate fully in tipping schemes.
  • Wages are always above the legal minimum, with no hidden costs.
  • National Insurance is fully managed, ensuring workers receive their benefits while reducing employer risk.

3. Stability for workers, flexibility for businesses

Our PAYE model ensures stability for workers while providing flexibility to businesses:

  • Reliable staffing solutions for seasonal or fluctuating demand.
  • Compliance with UK employment laws.
  • Simplified tax and National Insurance contributions for businesses.

4. Ready for legislative change

Labour’s proposed Employment Rights Bill, including a ban on zero-hours contracts, will disrupt many gig platforms. At Indeed Flex, our PAYE approach ensures:

  • Future-proof staffing solutions that meet all legislative requirements.
  • Hassle-free management of tax and NI obligations.

Compliance with GLAA and SEDEX standards

Indeed Flex is proud to be fully compliant with GLAA (Gangmasters and Labour Abuse Authority) and SEDEX (Supplier Ethical Data Exchange) standards. 

This ensures that our operations meet the highest ethical and regulatory benchmarks, safeguarding both employers and workers. Businesses can trust that their staffing solutions are aligned with global best practices and ethical employment standards.

Weekly payroll, Instant Pay option, and transparent scheduling

At Indeed Flex, workers are paid weekly, ensuring reliability and transparency:

  • Week 1: Workers attend shifts Monday-Sunday, logging hours via the app.
  • Week 2: Employers approve timesheets by Tuesday, and wages are deposited directly into workers’ bank accounts by Friday.
  • Workers can easily track timesheets and approved hours within the app to ensure accuracy.

Instant Pay Option: Workers also have access to Instant Pay, allowing them to receive earned wages quickly, providing added financial flexibility.

Feature Indeed Flex (PAYE) Gig Platforms (Freelance)
Worker Classification PAYE Agency Workers Independent Contractor
Statutory Rights Holiday pay, pensions, sick leave None
Compliance Fully aligned with UK laws Often relies on legal loopholes
National Insurance Automatically deducted and managed Not included
Fair Tipping Laws Fully compliant Excluded from tipping legislation
Pay Transparency Transparent and above minimum wage May include hidden fees or deductions
Future-Proof for Legislation Fully compliant with upcoming laws Uncertain legal standing
Worker Protections Comprehensive and secure Limited
Employer Liability None High

Additional benefits for workers

Beyond pay: Supporting workers and employers

Indeed Flex provides a range of benefits that go beyond just fair wages, ensuring support for workers while offering real value to businesses.

For workers:

  • Referral bonuses: Earn extra by inviting friends to join and work shifts.
  • Instant pay: Access your wages immediately, avoiding the wait for payday.
  • Holiday pay: Accrue pay with every shift to enjoy financial flexibility.
  • Pension contributions: Secure your future with automatic pension enrolment.
  • Seasonal peak incentives: Stay motivated and rewarded during busy periods.

For employers:

  • Sustainable staffing through PAYE: Ensure compliance with ethical and legal employment standards.
  • Transparent and fair pay: Offer competitive rates to attract and retain top talent.
  • Reliable workforce access: Meet your staffing needs with vetted, dependable workers.
  • Simplified tax and NI management: Save time with efficient handling of tax and National Insurance obligations.
  • Risk mitigation: Safeguard your business from reputational, legal, and financial risks.

As part of the Indeed family, we pride ourselves on being one of the most ethical businesses globally. Our approach to workforce management is guided by a commitment to fairness, transparency, and innovation.

By using our app and platform technology, we’re not looking to bypass employee rights but to enhance them. Indeed Flex is designed to empower both businesses and workers—streamlining processes, ensuring compliance, and providing a platform that respects and upholds the rights of every worker.

Partner with Indeed Flex today

Ensure compliance, support worker rights, and access the flexible workforce your business needs. Contact us to learn more about how Indeed Flex can transform your staffing solutions.

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