Recruitment sector regulations reform including proposals to stop EEA-only recruitment

Closed 23 Nov 2015

Opened 13 Oct 2015

Feedback Updated 25 Feb 2016

We Asked

We asked for views on proposals to simplify the Conduct of Employment Agencies and Employment Businesses Regulations. We also asked whether we should ban employment agencies and businesses from recruiting solely from other European Economic Area (EEA) countries without advertising in Great Britain.

You Said

We received 30 responses to the consultation. Respondents were in favour with the majority of proposals but felt that our proposal to remove regulation 27 (which determines the circumstances in which an employment agency can advertise a position) would have a negative impact on vulnerable people looking for work.

We Did

We intend to simplify the regulation for businesses while retaining protections for work-seekers. We will:

  • remove regulations 9, 11 and 17 and schedule 6, and amend regulation 23 and schedules 4 and 5 which cover business to business activity
  • amend regulation 27A to ban employment agencies and businesses from recruiting solely from other European Economic Area (EEA) countries without advertising in Great Britain


Due to concerns raised during the consultation we have decided to keep regulation 27.

Results Updated 25 Feb 2016

We intend to simplify the regulation for businesses, while retaining protections for people looking for work.

Links:

Overview

The recruitment sector is regulated by the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (the ‘Conduct Regulations’). In 2013, the Coalition Government consulted on proposed reforms to the legislation which would allow the recruitment sector greater freedom to fulfil its role in matching demand for jobs to demand for workers. The purpose of this consultation is to seek views on the specific amendments we propose to make to the Conduct Regulations.

We are also seeking views on a proposal to prohibit employment agencies and employment businesses from recruiting solely from other European Economic Area (EEA) countries without advertising in Great Britain and in English.

Why We Are Consulting

The recruitment sector plays an important role in the UK’s labour market by improving the efficiency of matching demand for jobs to demand for workers. However, the legislation which regulates the sector was identified as needing reform and in 2013 the Coalition Government consulted on proposed reforms to the recruitment sector legislation.

The proposal was to focus on 4 outcomes to ensure that the sector could operate fairly and flexibly:

  • Employment agencies and employment businesses are restricted from charging fees to work-seekers
  • There is clarity on who is responsible for paying temporary workers for the work they have done
  • The contracts people have with recruitment firms should not hinder their movement between jobs, and temp-to-perm transfer fees are reasonable
  • Work-seekers have the confidence to use the sector and are able to assert their rights


In July 2013, after considering responses to the consultation, the Coalition Government published a response, setting out the intention to proceed with reforming the legislation. The purpose of consulting again now is to seek views on the specific amendments that we propose to make to the legislation, which will remove some of the burden from business, while continuing to protect people who are looking for work.

In addition, we are also seeking views on a proposal to ban employment agencies and employment businesses from recruiting solely from other EEA countries without advertising in Great Britain and in English. The proposal will only apply to employment agencies and employment businesses recruiting in other EEA countries, as those who want to recruit from outside of the EEA already need to comply with the Resident Labour Market Test.

The closing date for this consultation is Monday 23 November 2015.

Areas

  • All Areas

Audiences

Interests

  • Apprenticeships
  • Economic growth
  • Starting a business
  • Consumer rights
  • Workplace rights
  • Shared parental leave
  • Flexible working
  • Science funding
  • Science and society
  • Science (STEM) skills
  • Innovation
  • Research
  • Regulation and red tape
  • Student Loans
  • Further Education loans
  • Further Education
  • R&D
  • National Minimum Wage
  • Business investment
  • Pubs
  • Pub companies
  • Pubs Code of Practice
  • Pubs Code Adjudicator
  • Higher Education
  • University
  • Higher Apprenticeship
  • Access to Higher Education
  • Student loans