Regulation of the Recruitment Sector

2013 saw a period of consultation on the government’s proposals to simplify and streamline the regulation of the recruitment sector, much of which is currently set out in the 2003 Conduct of Employment Agencies and Employment Businesses Regulations, with which those in the sector should be familiar.  The government stated that the rules should be replaced with “the simplest regulatory framework possible” whilst ensuring that agency workers had the ability to assert their rights, with proposed rules including:

  • Restrictions on charging fees to agency workers;
  • Making it clear who is responsible for paying agency workers;
  • Ensuring that agency workers are not prevented from moving between jobs; and
  • Ensuring that temp-to-perm transfer fees are reasonable.

The initial consultation closed in April 2013 and a further period of consultation was announced in July 2013 to consider draft legislation and a new definition of “employment agency”.  There is no further update on this and we are unlikely to hear further until after the election.

This guide is for general information and interest only and should not be relied upon as providing specific legal advice.  If you require any further information about the issues raised in this article please contact the author or call 0207 404 0606 and ask to speak to your usual Goodman Derrick contact.