|
Recruitment companies, being either Employment Agencies or Employment Businesses, are governed by various regulations, laws and tax requirements in relation to agency workers, candidates and hirers.
The main governing regulations are the Conduct of Employment Agencies and Employment Businesses Regulations 2003 which came into force on 6th April 2004. These are otherwise known as the "Agency Regulations" or "Conduct Regulations". Thereafter there were various amendments under the The Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2007 effective in 2008 and increased powers and penalties in 2009, with further consultation on amendments under consideration in 2009. The government has also issued guidance on the 2007 amendments.
The Regulations contain restrictions on charging transfer fees and numerous contractual and procedural requirements, including the requirement to agree terms of business with both client and candidate before dealing. Invoices raised for temp to temp, temp to perm, and temp to third party transfer fees that are not properly due are unlawful, and there are extensive provisions for record keeping. Penalties for failure to comply include civil liability for breach, and the Department of BIS has the power to investigate complaints and prosecute.
The Regulations are aimed at safeguarding the rights of workseekers, as well as the interests of hirers and employers and the needs of the recruitment industry. The Department of BIS (formerly DTI and then BERR) is continuing to review the requirements and has an ongoing program of enforcement.
Lawspeed was involved with government in the draft regulations from 2001 and was the architect of, amongst other things, the limited company opt out. As the leading adviser in the recruitment sector Lawspeed is well placed to give you the legal low-down on how these Regulations will affect your business, the documents (including client terms of business and candidate terms of business), the steps required, and how to hit the ground running.
For a step by step guide, why not buy our Regulations Manual - see right. Or consider Consultant Manager® for real peace of mind.
Lawspeed can also advise on the interaction of these regulations with the Agency Workers Directive, planned to be implemented in the UK by no later than December 2011, and other government legislation whether actual or published to be implemented.
CALL US on 01273 236236
Other useful links:
compliance and due diligence
|