Recruitment industry legislative reform: good and bad
15 July 2013
Bodies representing the recruitment industry have given a mixed reaction to the Department for Business, Innovation and Skills’ response to consultation on the legislation governing the recruitment industry.
Mon, 15 July 2013Bodies representing the recruitment industry have given a mixed reaction to the Department for Business, Innovation and Skills’ response to consultation on the legislation governing the recruitment industry.
Areas covered by the consultation included charging of candidates, enforcement of regulations, protection of vulnerable workers, red tape, and who should be able to opt out from the regulations.
As recruiter.co.uk reported on Friday, the government set out nine responses to the consultation in a document, available online.
This, the latest stage in replacing the Conduct Regulations that govern the recruitment industry, comes after representative bodies, individuals and companies were asked to give their views on future regulation in the consultation that closed on 11 April.
Liz Longman, managing director of TEAM (The Employment Agents Movement), criticises the government’s response for being short on detail. Longman tells Recruiter: “Unfortunately there is little detail provided apart from general headline points and no timetable set for this reform.”
However, she endorses commitment towards more focused enforcement on protecting vulnerable workers and abuses with regard to the National Minimum Wage.
Azmat Mohammed, director general of the Institute of Recruiters, tells Recruiter that there are “some real positives”. “It’s great to see government has recognised that current regulations were just too complicated and not fit for purpose. We are also pleased to see a new definition of ‘employment agency’, which now excludes job boards.
“New regulations will support a greater protection of vulnerable workers which is extremely important. We also welcome the small BIS team remaining to enforce regulations on agencies, which is a critical part of a healthy, compliant industry.”
Adrian Marlowe, chairman of the Association of Recruitment Consultancies (ARC), tells Recruiter that he welcomes the government’s efforts to modernise the legislation and to make it easier to understand.
“We hope that it enables standards to be preserves,” says Marlowe. However, he adds: “It remains to be seen how they change the wording.”
Tom Hadley, director of policy at the Recruitment & Employment Confederation (REC), welcomes the decision to retain the Employment Agency Standards Inspectorate, following fears that it was to have been disbanded. However, he warns “the fact that resource is being downscaled and responsibilities split between departments [BIS and HM Revenue & Customs] raises concerns about how effective it can be”.
Hadley says “it is also good news” that the prohibition of fee-charging to jobseekers has been reaffirmed.
However, he says the government has missed “a real opportunity” by failing to update legislation to reflect the contemporary recruitment industry in which umbrella companies and other employment intermediaries are now significant players.
Ann Swain, chief executive of the Association of Professional Staffing Companies (APSCo), welcomes the retention of the opt-out from the regulations for limited company contractors who engage with recruitment firms in a business-to-business relationship.
Areas covered by the consultation included charging of candidates, enforcement of regulations, protection of vulnerable workers, red tape, and who should be able to opt out from the regulations.
As recruiter.co.uk reported on Friday, the government set out nine responses to the consultation in a document, available online.
This, the latest stage in replacing the Conduct Regulations that govern the recruitment industry, comes after representative bodies, individuals and companies were asked to give their views on future regulation in the consultation that closed on 11 April.
Liz Longman, managing director of TEAM (The Employment Agents Movement), criticises the government’s response for being short on detail. Longman tells Recruiter: “Unfortunately there is little detail provided apart from general headline points and no timetable set for this reform.”
However, she endorses commitment towards more focused enforcement on protecting vulnerable workers and abuses with regard to the National Minimum Wage.
Azmat Mohammed, director general of the Institute of Recruiters, tells Recruiter that there are “some real positives”. “It’s great to see government has recognised that current regulations were just too complicated and not fit for purpose. We are also pleased to see a new definition of ‘employment agency’, which now excludes job boards.
“New regulations will support a greater protection of vulnerable workers which is extremely important. We also welcome the small BIS team remaining to enforce regulations on agencies, which is a critical part of a healthy, compliant industry.”
Adrian Marlowe, chairman of the Association of Recruitment Consultancies (ARC), tells Recruiter that he welcomes the government’s efforts to modernise the legislation and to make it easier to understand.
“We hope that it enables standards to be preserves,” says Marlowe. However, he adds: “It remains to be seen how they change the wording.”
Tom Hadley, director of policy at the Recruitment & Employment Confederation (REC), welcomes the decision to retain the Employment Agency Standards Inspectorate, following fears that it was to have been disbanded. However, he warns “the fact that resource is being downscaled and responsibilities split between departments [BIS and HM Revenue & Customs] raises concerns about how effective it can be”.
Hadley says “it is also good news” that the prohibition of fee-charging to jobseekers has been reaffirmed.
However, he says the government has missed “a real opportunity” by failing to update legislation to reflect the contemporary recruitment industry in which umbrella companies and other employment intermediaries are now significant players.
Ann Swain, chief executive of the Association of Professional Staffing Companies (APSCo), welcomes the retention of the opt-out from the regulations for limited company contractors who engage with recruitment firms in a business-to-business relationship.
