When employed by an agency, I work as a Ltd Co contractor (rather than as a PAYE contractor). I then use the services of a payroll company to manage my expenses and deductions.
However, when I applied for a temporay position advertised recently, an agency told me my employment was conditional on using their payroll company, not my own.
Is it legal for an agency to impose these terms - ie. pending a job offer, demand that I contract with another party in addition to themselves?
I can't afford to turn away work, but the potential for abuse here is such that I've had to and hope this is an isolated case.