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HRchive Features May 2004: A layman's guide to the new legislation, courtesy of the team at PriceJamieson The Conduct of Employment Agencies and Employment Businesses Regulations 2003 This new legislation became effective on 6th April 2004. It regulates the standards by which both Employment Agencies and Businesses operate and ensures fair play for both candidates and clients. For clarification an Agency handles permanent recruitment and a Business handles temporary workers - the Agency/Business now has to declare which one they are working as to both the client and the candidate. The main additions to the already in place Employment Agencies Act 1973 include getting more information from both client and candidate and ensuring that this is passed on from one to the other. From the candidate Agencies/Businesses must see proof of identity and qualifications now and must let the client know what they have seen. From the client Agencies/Businesses must get as much detail about the vacancy as possible including things like place of work, hours of work, expenses, what qualifications are needed (or required by law) for the candidate to do the job, etc,etc. The client must also declare that the premises where the candidate will work have had an appropriate risk assessment. The Agency/Business has to send Terms of Business as usual to the client, but also now must agree written terms with the Candidate on how they will work with them to find suitable employment. All advertising must clearly state whether the company is working as an Agency or Business and their full name must appear on the Ad. This runs to any advertising including job sites. If the Agency/Business doesn’t comply with the Regulations and that causes “damage or loss” to another person, that person can sue for damages arising from a breach of the regulations. (Damage means death of, or injury to, any person, including any disease and any impairment of that person’s physical or mental condition) A breach of these Regulations is also actionable by the DTI as a criminal offence and may be prosecuted by the DTI through the criminal courts. If the Agency/Business becomes aware in the first three months (from start of employment) of any information that makes a Candidate unsuitable for the position in which they have been placed, they have to inform the Client without delay. This provision may give rise to some issues over Data Protection. All records on Candidates/Clients/Jobs must be kept for a year after their creation/or following the date the Agency/Business last provided their services. However they are not required to keep details of a Candidate if they take no action in relation to finding work for them. These regulations also now cover Ltd Co contractors as well as individual contractors. Employment Businesses can’t introduce Contract Workers to a Client to be employed directly by them, but continue to pay the Worker and thereby claiming that the only part of the charge that attracts VAT is their margin. If the client does not want the Worker on their payroll the business has to engage them. Important Note It is important to stress that we are a recruitment business and not qualified lawyers. All of the above is our understanding as laymen of the new regulations and how they should work. The actual regulations are freely available online.
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