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The Department for Business, Innovation, and Skills (BIS) published its official response to its consultation of regulatory reform of the recruitment sector. The consultation sought views of the Governments proposals to establish a new framework with minimal regulation.
Four outcomes were the focus of the consultation:
- Employment agencies and employment businesses are restricted from charging fees to work-seekers.
- Clarity should be provided on who is responsible for paying a work-seeker for the work they have done.
- The contracts people have with recruitment firms should not hinder their movement between jobs, and temporary to permanent transfer fees are reasonable.
- Work-seekers should have the confidence to use the sector and are able to assert their rights.
The government has considered the responses to the consultation; and, after this consideration, intends to proceed with the proposal to replace the current legislation with a new regulatory framework. It will remove some of the burden from business but continue to protect people who are looking for work. The government proposes that the new legislation could cover;
- Ensuring that employment businesses do not withhold payment from a temporary worker.
- Restricting employment agencies and employment businesses from charging fees to work-seekers.
- Ensuring that where more than one business works together to supply a temporary worker to a hirer there is clarity on who is responsible for paying the temporary worker.
- Preventing employment businesses and employment agencies from penalising a temporary work-seeker for terminating or giving notice to terminate a contract.
- Preventing employment businesses from enforcing unreasonable terms on a hirer when a temporary worker takes up permanent employment with that hirer.
- Ensuring that employment agencies and employment businesses keep sufficient records to demonstrate that they have complied with the regulations.
“Some measures appear sensible and reflect the arguments the Recruitment and Employment Confederation (REC) and our member have made consistently to Ministers, particularly the retention of an opt-out for Limited Company Contractors. It’s also good news that the prohibition of fee-charging to work-seekers has been reaffirmed. How ‘reasonable’ temp to perm fees will be defined is not yet clear and we will pay close attention to the detail of draft legislation wen it is published. The last thing our industry needs is unnecessary government intervention into business-to-business arrangements,” said Tom Hadley, director of policy at the REC.
To read the full consultation paper, please click here.