"On a number of occasions this year we have had new clients complaining about the service received from the outgoing provider. When serving due notice to the existing provider a customer expects that the contract will come to an end and that the new provider will liaise with the previous provider to ensure a smooth and accurate transfer of data."
"Providers now seem to be spotting this as an opportunity to levy exorbitant charges to provide information. In one case we noted a £500 fee to the customer for providing payroll information. This was equivalent to 4 months worth of processing charges. Provision of employee data and year to date information is a very straightforward process and is almost click of a button with most modern software systems."
Mr Rowell went on to comment "We believe this is a dreadful tactic and can do nothing but give a bad impression of our industry. Payroll outsourcing customers, whoever they use deserves to be treated fairly."
"Is it time for the profession to look to itself and play fair with its customers. A voluntary code of conduct covering these issues would be a very welcome measure."