The best ATS for a perm agency and the best for a temp or contract agency are usually different products. Perm recruitment needs a strong candidate and client pipeline and a placement record; temp and contract recruitment also needs bookings, timesheets, pay and bill, and compliance checks, so a temp agency should choose a platform with those built in or pair its ATS with a dedicated back-office tool.
Crumblelead is perm-focused, and this guide says plainly where it fits and where it does not. It sets out how perm and temp software needs differ, the UK compliance a temp agency's software must support, and the typical tools. It was last updated on 15 October 2026.
How do perm and temp software needs differ?
A perm placement produces one fee invoice. A temp or contract placement produces recurring weekly work: shifts, timesheets, pay and invoices. The core idea of temp back-office software is that one approved timesheet generates both the worker's pay and the client's invoice.
| Need | Perm agency | Temp or contract agency |
|---|---|---|
| Pipeline | Candidates and clients, shortlists, interviews, offers | The same, plus bookings and shifts |
| Money | One placement fee, with rebate or guarantee tracking | Timesheets and approvals, weekly pay and client invoices with margin |
| Pay | None | PAYE, umbrella or limited company workers |
| Compliance | Data protection and candidate consent | Right to work, documents with expiry dates, Key Information Documents, holiday pay, the 12-week rule |
| Cash | Fee invoices and credit control | Credit control, often invoice finance |
Both markets are large. In the UK, the REC reports 872,000 temps and contractors on assignment on an average day in 2024 and 536,400 permanent placements that year.
What UK compliance must temp agency software support?
- Right to work. Since 13 February 2024, civil penalties are up to £45,000 per illegal worker for a first breach and £60,000 for repeat breaches. Software needs to capture documents, record check dates and prompt follow-up checks for time-limited permission. When the agency engages or pays the worker, the check is the agency's job.
- Umbrella company PAYE. From 6 April 2026, the agency, or the end client if there is no agency, is liable for PAYE on umbrella workers, with joint and several liability, according to industry and legal commentary. Agencies need due-diligence records and payslip checks.
- Key Information Document. Required before agreeing terms with agency workers since 6 April 2020, under the Conduct of Employment Agencies and Employment Businesses Regulations 2003.
- Holiday pay. Rolled-up holiday pay at 12.07% is allowed for irregular-hours and part-year workers for leave years starting on or after 1 April 2024.
- Agency Workers Regulations 2010. Equal basic pay and conditions after 12 weeks in the same role, so software should count qualifying weeks.
- IR35 for contractors. Since April 2021, medium and large private-sector clients issue Status Determination Statements, which the agency must pass along the chain.
Enforcement has also changed: the Fair Work Agency launched on 7 April 2026, bringing together the Employment Agency Standards inspectorate and other bodies, and now enforces minimum wage and agency standards.
What about Australia, the US and the EU?
In Australia, labour hire licensing applies in Queensland, Victoria, South Australia and the ACT, with significant penalties for unlicensed provision. In the US, temp agencies need I-9 verification, state-by-state pay and tax handling and workers' compensation; TempWorks and Avionté are often recommended for US temp work. In the EU, the Temporary Agency Work Directive requires equal treatment from day one, with national exceptions, and several member states license agencies.
What tools do temp agencies use?
Temp agencies usually run a front-office ATS or CRM plus a back office. In the UK, pay and bill options include Access Pay & Bill, Flo, PurePro and InTime, and middle-office tools such as Invoxy and Karmly suit smaller agencies. Some agency platforms combine front and back office: Bullhorn offers onboarding, pay and bill and VMS automation as separate products, Vincere offers timesheets and pay and bill through TimeTemp, JobAdder tracks temp compliance with payroll through partners, and Recruit CRM includes timesheets using credits. See our comparisons of Bullhorn, Vincere, JobAdder and Recruit CRM.
What does Crumblelead do for temp and contract work?
Crumblelead is built for perm recruitment. You can mark a job as contract or temporary, and placements record the fee, start date, invoicing status, fall-offs and how the fee is split between consultants. There is no way to enter contract bill rates, pay rates or hours, so Crumblelead does not track contract margin.
Crumblelead does not have timesheets, shifts or bookings, payroll, pay and bill, or client invoicing. It does not run right-to-work checks, track document expiry dates, produce Key Information Documents, count Agency Workers Regulations weeks or keep umbrella due-diligence records. You can attach documents to a candidate, but nothing tracks their expiry.
When should an agency choose a temp-focused tool instead?
Choose a temp-focused platform, or pair your ATS with a back office, when any of these is true:
- you pay workers weekly through timesheets;
- you need to bill clients from approved timesheets with a margin;
- you engage workers through umbrella companies and need due-diligence records;
- you need right-to-work checks, document expiry alerts or Agency Workers Regulations tracking in the same system;
- you book shifts.
If you mainly place permanent staff and handle a few contractors through an umbrella or payroll provider, a perm-focused ATS can work, with the back office handled elsewhere. That is the agency Crumblelead is built for. If temp work is your core business, Crumblelead is not the right choice on its own.
What are the common misconceptions?
- "Any ATS handles temps." Most perm-focused systems lack shifts, timesheets and pay and bill.
- "Using an umbrella moves the tax risk off the agency." Not since 6 April 2026.
- "Right to work is the client's job." Not when the agency engages or pays the worker.
See also what an agency ATS should connect to and the best ATS for small agencies.
FAQ
Do I need separate payroll software for temps?
Usually, unless your ATS includes pay and bill. Most perm-focused systems do not, so temp agencies pair them with a back office such as a pay and bill platform or a payroll provider.
Who is responsible for right to work checks for agency temps?
The employer of the worker. For temps the agency engages or pays, that is the agency, with civil penalties of up to £45,000 per illegal worker for a first breach.
What changed with umbrella companies in April 2026?
From 6 April 2026, the agency, or the end client if there is no agency, is liable for PAYE on umbrella workers, with joint and several liability and, according to industry commentary, no due-diligence defence.
Sources
REC, Recruitment Industry Status Report press release, 8 December 2025.
gov.uk, Right to work checks: an employer's guide.
https://www.gov.uk/government/publications/right-to-work-checks-employers-guide
gov.uk, Providing a Key Information Document for agency workers.
FCSA, umbrella company PAYE liability, 27 July 2026.
REC, Fair Work Agency launch, April 2026.
Happlicant, roundup of Reddit ATS threads, 14 October 2026.
American Staffing Association, staffing industry statistics (2021 data).
https://americanstaffing.net/research/fact-sheets-analysis-staffing-industry-trends/