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4th August 2009
After a huge
battle with recruiters in the middle of this decade the government finally
settled on a formula for limiting temp to perm, temp to temp and temp to third
party fees (“transfer fees”). You will all no doubt be aware that the rules are
set out in Regulation 10 of the Conduct of Employment Agencies and Employment
Businesses Regulations 2003.
However the
battle has begun once again.
It is a little
reported fact that the government has included a section within the AWD
consultation indicating its intention to reopen the debate about transfer fees.
It blames the requirement for this on the Agency Worker’s Directive, although
we would disagree that the Directive contains any requirement for further
measures.
Unlike the
restriction contained in Regulation 10, which disallows charges if the transfer
takes place after certain periods of time (e.g. 8 weeks after end of
Assignment) the new proposal is that the amount of the agency charges should be
limited. No one knows as yet by how much as the government makes no mention of
a figure, although it does allude to example figures within its impact
assessment.
This is
another measure which stands the risk of being slipped in without again any
reporting or proper considered debate. Once again ARC calls upon agencies to
support its actions by joining its work.
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