ARC rejects Sun suggestion of widespread jobseeker fees
29 November 2013
The Association of Recruitment Consultancies (ARC) says allegations in The Sun that up to 270,000 low-paid workers are illegally being made to pay weekly fees of up to agencies they work through are “hard to swallow”.
Fri, 29 Nov 2013The Association of Recruitment Consultancies (ARC) says allegations in The Sun that up to 270,000 low-paid workers are illegally being made to pay weekly fees of up to agencies they work through are “hard to swallow”.
According to an article on p30 of the newspaper yesterday (29 November), up to 270,000 workers using recruitment agencies to work mainly in the building, driving and retail trades are paying between £10 and £25 a week to the agencies.
Under longstanding legislation, it is illegal for employment agencies and employment businesses to charge fees to workers – with the exception of select situations within the entertainment and modelling sectors.
ARC chair Adrian Marlowe says: “The suggestion that illegality is so widespread is wholly rejected.”
He adds that this allegation is “hard to swallow when the industry is highly regulated”, saying the recent scaling back of the government's industry-specific enforcement team is proof of high levels of compliance in the industry.
The Sun also suggests that next week’s Autumn Statement from Chancellor George Osborne will see changes in rules governing temporary recruitment, as proposed by the Treasury. This will close a “loophole” allegedly costing the public purse £500m a year by allowing employers to avoid paying National Insurance costs by classifying staff as self-employed.
The Treasury did not respond to a request from ARC to comment.
The Sun tells recruiter.co.uk it stands by its story.
According to an article on p30 of the newspaper yesterday (29 November), up to 270,000 workers using recruitment agencies to work mainly in the building, driving and retail trades are paying between £10 and £25 a week to the agencies.
Under longstanding legislation, it is illegal for employment agencies and employment businesses to charge fees to workers – with the exception of select situations within the entertainment and modelling sectors.
ARC chair Adrian Marlowe says: “The suggestion that illegality is so widespread is wholly rejected.”
He adds that this allegation is “hard to swallow when the industry is highly regulated”, saying the recent scaling back of the government's industry-specific enforcement team is proof of high levels of compliance in the industry.
The Sun also suggests that next week’s Autumn Statement from Chancellor George Osborne will see changes in rules governing temporary recruitment, as proposed by the Treasury. This will close a “loophole” allegedly costing the public purse £500m a year by allowing employers to avoid paying National Insurance costs by classifying staff as self-employed.
The Treasury did not respond to a request from ARC to comment.
The Sun tells recruiter.co.uk it stands by its story.
