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AWD threatens temp to perm fees

AWD threatens temp to perm fees

Adrian Marlowe

Adrian Marlowe

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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