Government to reform recruitment industry framework
12 July 2013
The Department for Business, Innovation and Skills (BIS) will move to replace current legislation governing the employment and recruitment services industries and create a new framework reducing “some of the burden on business”.
Fri, 12 Jul 2013
The Department for Business, Innovation and Skills (BIS) will move to replace current legislation governing the employment and recruitment services industries and create a new framework reducing “some of the burden on business”.
The new framework will “focus on areas where work-seekers are most at risk of exploitation”, today’s government response to ‘Reforming the regulatory framework for the recruitment sector', available online, announces.
A further short consultation on draft legislation will be carried out once that legislation is prepared, although a BIS spokesperson tells Recruiter there is no timetable for this yet. This comes after the recruitment industry was asked to give its views for a consultation on the future of the industry from BIS, which closed on 11 April. Changes to the government’s enforcement strategy are also due.
In total, 286 parties responded to the consultations, of which 93 were micro businesses, 61 were individuals, 35 were small businesses and 25 were business representatives or trade bodies.
Responses tended to agree with the general direction of BIS’s proposals, with the exception of allowing agencies to charge jobseekers fees and forcing agencies to publish business-related information.
Government responses
The nine government reactions to the response to the consultation, which can be seen on pp29-30 of the document, are:
“Employment agencies and employment businesses will benefit from simpler regulation. This will give the sector greater freedom to fulfil its role in providing labour market flexibility and adaptability.
“We were delighted with the number, and the depth, of the responses received to the consultation and I would like to thank everyone who took the time to respond.”
The Department for Business, Innovation and Skills (BIS) will move to replace current legislation governing the employment and recruitment services industries and create a new framework reducing “some of the burden on business”.
The new framework will “focus on areas where work-seekers are most at risk of exploitation”, today’s government response to ‘Reforming the regulatory framework for the recruitment sector', available online, announces.
A further short consultation on draft legislation will be carried out once that legislation is prepared, although a BIS spokesperson tells Recruiter there is no timetable for this yet. This comes after the recruitment industry was asked to give its views for a consultation on the future of the industry from BIS, which closed on 11 April. Changes to the government’s enforcement strategy are also due.
In total, 286 parties responded to the consultations, of which 93 were micro businesses, 61 were individuals, 35 were small businesses and 25 were business representatives or trade bodies.
Responses tended to agree with the general direction of BIS’s proposals, with the exception of allowing agencies to charge jobseekers fees and forcing agencies to publish business-related information.
Government responses
The nine government reactions to the response to the consultation, which can be seen on pp29-30 of the document, are:
- Replacing the current legislation “with a new regulatory framework which removes some of the burden from business but continues to protect people who are looking for work”
- It will not extend the charging of fees to employment agencies outside of the entertainment and modelling sectors
- Further research into apparent abuse of upfront fees in those sectors
- Removing job boards from the scope of the regulations
- Carrying out a further short consultation on draft legislation, which includes the new definition of ‘employment agency’
- Retaining a provision “for individuals who are limited company contractors to opt out of the regulations and engage with employment businesses and employment agencies, in a business to business relationship”
- It will not make it compulsory for employment agencies and businesses to publish information about their business
- Changing the enforcement strategy in recruitment “to a more focused and targeted enforcement regime” protecting vulnerable workers, with enforcement carried out under national minimum wage legislation and subject to HM Revenue & Customs sanctions
- “A small team will remain in BIS to enforce the other regulations which apply to employment agencies and employment businesses”
“Employment agencies and employment businesses will benefit from simpler regulation. This will give the sector greater freedom to fulfil its role in providing labour market flexibility and adaptability.
“We were delighted with the number, and the depth, of the responses received to the consultation and I would like to thank everyone who took the time to respond.”
