The Recruitment and Employment Confederation has expelled ARZ Management Limited, a Southampton-based recruitment firm, for breaching three principles of the REC Code of Professional Practice.

In October 2018, ARZ had its Gangmasters and Labour Abuse Authority (GLAA) licence revoked after inspectors uncovered a host of issues which exposed its workers to exploitation. Following the revocation, the REC sought to conduct a comprehensive investigation including inviting ARZ to answer questions from the REC Professional Standards Committee.

ARZ did not respond to the REC’s repeated requests for information and engagement within the timeframe allotted to them for complying with the investigation.

The Committee therefore based its decision on the GLAA’s investigation. The findings were that ARZ had amongst other things contravened GLAA licensing standards, not ensured all workers were given copies of their contracts, or correct calculations of annual leave or holiday pay. In addition not all employees were provided with payslips.

The parts of the REC code which were therefore breached were, Principal 1 – respect for law, Principal 5 – respect for safety, and Principal 8 – respect for prompt and accurate payment.

REC Professional Standards Committee Chair Rebekah Handford commented, “We expect the highest standards of compliance and customer service from REC members so that the REC badge is something clients and jobseekers can trust. The vast majority of our members recognise their responsibilities and operate professionally and ethically at all times. That said, when a member is found to have acted outside of our code we will take timely and robust action to deal with them.”

“In instances where a complaint is made about an REC member, we investigate and where possible work with our recruiters to help them comply,” Handford said. “However on this occasion ARZ didn’t respond to REC requests to help with the PSC’s investigations in a timely way. This left us with no option but to expel them based on the findings of the GLAA’s inquiry which lead to the revocation of their GLAA license.”

Handford added, “We have a duty to our members to deal robustly with instances of wrongdoing. We encourage clients and candidates with evidence of bad practice to get in touch so we can hold recruiters to account. Ensuring the highest professional standards are maintained throughout our membership is extremely important to us.”

All recruitment agencies must adhere to the Conduct of Employment Agencies and Employment Businesses Regulations 2003 and the Employment Agencies Act 1973, which are the main statutory rules governing the conduct of recruiters. REC members go beyond these statutory requirements and commit to follow the REC’s Code of Professional Practice.   

ARZ Management initially contested the GLAA’s decision but withdrew its appeal shortly before a hearing was scheduled to take place.

Staffing Industry Analysts reached out to ARZ Management for comment but at the time of publication the company had not yet responded.