Recruitment industry insiders fear the Recruitment and Employment Confederation (REC) trade body does not have enough power to police rec-to-rec companies.

The claims emerged as the REC announced plans to form a division specially for rec-to-recs in a bid to raise standards.

Rec-to-rec companies supply staff to the recruitment industry and are often accused of misconduct.

The REC proposed the idea last year, and a brainstorming meeting early this month of potential members will discuss methods in which the division could improve the reputation of rec-to-rec firms.

Other REC divisions have their own codes of practice and it seems likely that rec-to-rec members would have to sign up to their own code.

Rec-to-rec firms have supported the idea but have warned the division must have stronger disciplinary procedures. Jeff Dale, sales director of CD Sales Recruitment, which has a rec-to-rec division, said the REC was “toothless”.

He added: “But I think the rec-to-rec sector would welcome a body that devised and policed a code of conduct and established minimum service levels. Bodies like ABTA [for the travel industry] have power, but I feel the REC doesn’t.”

John Constable, director of rec-to-rec firm Recruitment Figures, agreed, saying: “If you made fines large enough, that would make the regulation system stronger. If you just get rapped across the knuckles, that’s not enough.”

Ruella Crouch, managing director of rec-to-rec firm Ruella James, said: “We get so much stick, there needs to be some sort of body that looks into complaints. At the moment we have no credibility at all, but other companies in recruitment do exactly the same things we are accused of.”

Marcia Roberts, deputy chief executive of the REC, said: “We know that there is a great deal of support for a sector group and fully anticipate that many rec-to-rec companies will wish to join. It is churlish for the trade press to take a negative view of an initiative to raise standards.”