Conduct Regulations changes announced

The government has responded to its latest consultation on the Conduct of Employment Agencies and Employment Business Regulations 2003, announcing its proposals for change and confirming once again that job boards will not be excluded.

New regulations have been published which will include an extension of the requirement to advertise in Great Britain as well as in non-EAA countries to general recruitment campaigns as well as specific vacancies and to remove some other regulations which, it is considered, place an administrative burden on recruiters. There are also some more minor changes relating to record keeping and dealings with other recruiters.

Regulations 9, 11 and 17, dealing with the capacity in which a recruiter operates, entering into terms on behalf of a hirer or work seeker and agreeing terms with a hirer prior to the provision of any services, are to be removed in their entirety. However, the changes may not have a significant practical impact as agreeing terms with a hirer and operating in a transparent manner are often steps taken for commercial reasons as well as regulatory compliance. Theresa Mimnagh of Lawspeed said “having terms in place with a hirer at an early stage is essential for fee protection, without agreement to commercially protective terms, a recruiter is reliant solely on the goodwill of a hirer for a fee to be due, and issues such as prior knowledge and the circumstances in which a fee is due are often left unsaid. Covering these matters within commercial terms, whether a recruiter’s own, or reviewing and amending a hirer’s,  and ensuring that this is done at a very early stage offers a  recruiter the greatest prospect of recovering fees should an engagement be disputed.”

The changes are included within draft regulations and are intended to come into effect on 6th April 2016.

For advice on the Conduct Regulations, terms, compliance or internal processes contact Lawspeed on 01273 236 236.

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