Employment agency / Payroll company

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.
Reply to
John Burke
Not if the payroll company makes a charge to you, no.
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Reply to
A payroll company doesn't work for free.
I think I'll continue this matter with their advertiser then.
Reply to
John Burke
If it doesn't work like that and you have to pay them for the payroll services which they insist you take up then they are breaking the law.
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