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Conduct of Employment Agencies and Employment Businesses Regulations 2003 (The Regulations)
A guide for companies using recruitment agencies
This guide provides information on The Conduct of Employment Agencies and Employment Businesses Regulations 2003 (The Regulations) which governs the conduct of the private recruitment industry and establishes a framework of minimum standards that clients, both work-seekers and hirers, are entitled to expect. These Regulations stipulate how recruitment businesses should operate, providing added protection for job seekers and companies using services of recruiters. The regulations came into force on 6 April 2004, below is a synopsis of the main points and meanings.
Employment Business: Those recruiters supplying contract or temporary staff.
Employment Agencies: Those recruiters supplying permanent staff.
Information to be supplied to you:
According to the Regulations, as a client you must be given a contract by the agency or business supplying recruitment services which sets out their terms of business.
The recruiter must also confirm:
1. The identity of the work-seeker.
2. Eligibility of the work seeker to work in the UK.
3. That the work seeker has the experience and qualifications that you require to work in the position.
4. That they are willing to work in the position.
Unsuitable work-seekers:
The Regulations also bring in another responsibility on agencies and businesses to notify you if they obtain information that means the work-seeker is or may be unsuitable. For those businesses supplying temporary or contract staff this responsibility is ongoing during the supply of the worker. In the case of agencies supplying permanent staff they are obliged to notify you if they obtain such information during the first three months after introducing the candidate.
Employment businesses charging temp to perm fees:
Typically employment businesses charge a fee if you take a temporary worker on directly after a temporary assignment, called a temp to perm fee. However, under the Regulations the employment business may only charge you a fee if you take on the temporary worker within a period of 8 weeks after the end of an assignment or 14 weeks from the start of the assignment, whichever is the later. Also you may still be liable to pay a transfer fee, provided that the employment business gives you the option of an extended period of hire as an alternative to the fee.
Incorporated (ltd company) work-seekers:
The Regulations also cover work-seekers who contract their services through a limited company. However they may opt out of the Regulations if they give appropriate notice to the employment business. This means that the Regulations will not apply to the supply of that person’s services. It is up to the incorporated work-seeker to determine if they want to opt out of the Regulations and it is illegal for an employment business to make opting out a prerequisite for finding or offering them work.
What recruitment agencies require from the hirer:
Much of the new Regulations only affect recruitment agencies operating procedures, however some of them will impact the way in which you, as a hirer are able to use their services.
In order to act as an Employment Agency or Business on behalf of the hirer, all agencies must now obtain information from the hirer in respect of each vacancy they issue. Employment Agencies or Businesses must not introduce or supply a work-seeker to a hirer unless it has sufficient information from the hirer to select a suitable work-seeker for the position they seek to fill. If this information is not received then legally any Employment Agency or Business supplying to a hirer are not allowed to represent work-seekers to them.
The hirer must supply the Employment Agency or Business with the following information:
The identity of the hirer (name of line manager hiring).
The nature of the hirer’s business.
Clarification which company in a group of companies is the hirer.
The date on which the hirer wants a work-seeker to start work
The position including:
The type of work the work-seeker would be required to do.
The location at which the work-seeker would carry out the work.
The hours to be worked (in accordance to the Working Time Directive).
Any opt out from the Working Time Directive.
Any risks to Health & Safety known to the hirer and the steps that have been taken to prevent or contain such risks.
The experience, training, qualifications and any authorisation which the hirer considers necessary, or which the worker needs to have by law or by the requirements of any professional body in order to carry out the work.
Any expenses payable by or to the work-seeker – this includes expenses payable once the work-seeker starts work and also any expenses incurred in attending interviews prior to work commencing. It also includes expenses payable by the work-seeker, e.g. where they are required to pay for a mandatory Criminal Records Bureau check.
The minimum rate of pay and any other benefits offered by the hirer.
The length of notice which a work-seeker would be required to give and entitled to receive, to end the employment with the hirer.
Note: If an incorporated (Ltd Company) work-seeker has opted out of the Regulations then the above does not apply.
This synopsis is just a guide to the Regulations, for further information please refer to the Department for Business, Enterprise and Regulatory Reform website - www.berr.gov.uk
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