New rules governing the conduct of employment agencies do not do enough to protect vulnerable job seekers from exploitation, unions have claimed.

An undercover investigation by the Trades Union Congress (TUC) revealed that agencies were breaking the law by charging job seekers to find them work. Two-thirds of the agencies approached by TUC investigators posing as undocumented migrant workers asked for illegal “find-work” fees.

This is unlawful under the revised version of the 1973 Employment Agencies Act, which came into effect last week.

One of the agencies said £100 could lead to a waiter’s job, while it would cost £50 for a position as a kitchen porter.

The TUC is concerned that language difficulties and ignorance of UK employment law make migrant workers from both inside and outside the European Union more vulnerable to rogue agencies.

The TUC wants the government to introduce licensing for all employment agencies and increase the resources available to the department of trade and industry so agencies can be prosecuted.

TUC general secretary Brendan Barber said: “The government has bent over backwards to the wishes of employers and agency owners, instead of protecting the group of workers most open to abuse.”

The Recruitment and Employment Confederation, the industry’s trade body, said there were not enough inspectors to police agencies.