Contractors have retained an opt-out of the recruitment agency Conduct of Employment Agencies Regulations, following a campaign involving three industry groups.

The Association of Professional Staffing Companies (APSCo), the Service Providers Association (SPA) and the Professional Contractors Group (PCG) came together in response to Department of Business Innovation and Skills (BIS) proposals.

BIS had proposed to broaden the Conduct Regulations, which were first introduced in 2003. One of its proposals was to take away the option which contractors who operate through limited companies or umbrella companies currently have of opting-out of the Conduct Regulations, despite most contractors voluntarily doing so.

A BIS spokesperson told Recruiter: “The consultation sought evidence on whether vulnerable workers, supplied to a hirer through umbrella companies, are at risk of being exploited because of the opt-out. The consultation did supply sufficient evidence that this was not the case so we decided not to take any further action.”

Ann Swain, chief executive of APSCo, (pictured) says: “This is an important victory for the recruitment industry. If the opt-out had been withdrawn, the red tape burden on recruiters and contractors of automatically having to comply with the Conduct Regulations would have imposed significant additional costs.
 
“The government has acknowledged that there is insufficient evidence of the opt-out being used to exploit vulnerable workers. It should concentrate on finalising the AWD regulations and getting the employment market back on track before it returns to this issue again.”