Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
HR Pitfalls of Recruitment Agencies This guide explores the common HR pitfalls of recruitment agencies and offers guidance on how to avoid legal liabilities. Being able to outsource recruitment to external to comply with these regulations can mean a the employment agency and the work seeker once agencies means a load of an employer’s mind. financial penalty for the employer. work had been found. Permanent work is found However, recruitment agencies, by lightening the with an employer for the work seeker rather than burden on other employers, take on their own The Regulations make the distinction between temporary assignments, and this employer pays set of HR responsibilities and obligations. In fact, an employment business and an employment the work seeker. these types of businesses, technically known agency. Employment businesses are companies as employment businesses and employment which enter into contract with work seekers to Because an employment business maintains agencies, have their own set of rules and find them temporary assignments but maintain an ongoing relationship with the work seeker, regulations to abide by. an ongoing relationship with the work seeker e.g. they have more HR issues to consider. Certain make payments to them (rather confusingly, this employment rights apply to work seekers who The Conduct of Employment Agencies and situation is commonly referred to by the name of sign up with an employment business because Employment Businesses Regulations 2003 are recruitment agency). they fall into the category of ‘worker’, opposed to concerned with implementing safeguards to ‘employee’ for the purposes of employment law. It those working for employment businesses and Employment agencies operate under a different is the responsibility of the employment business to set restrictions on charging arrangements. Failure set up. There is no ongoing relationship between ensure that work seekers: Free Advice for Employers on 0800 028 2420 www.peninsula-uk.com Page 1 of 3 Employment Law Guide for Employers HR Pitfalls of Recruitment Agencies employee would receive at the end user company. at an end user company, is an employee of the received Pay is one of the areas in which equal treatment employment business, and therefore not only has payment from the end user company), otherwise must be achieved and therefore the employment the right to paid annual leave, national minimum the work seeker could bring proceedings for business should obtain information from the end wage etc, but also the full set of employment unlawful deductions; user in order to ensure that the agency worker is legislation including the right to a statement of being paid in line with the Regulations. main terms of employment, redundancy pay, • Are paid for the work they do (even if the employment business has not • Receive the statutory minimum of 5.6 weeks’ annual leave; time off for dependants, maternity leave not to The Agency Worker Regulations contain an • Stay within maximum working hours; and be unfairly dismissed, etc. It also does not act to exemption to the equal treatment obligation, and remove all obligations under the Agency Worker • Receive at least the national minimum wage, this can be achieved by engaging agency staff on Regulations. It is important, therefore, for the and the national living wage from April 2016. the Swedish Derogation Model. This means that employment business to assess exactly how they the agency worker does not need to be paid on wish to engage individuals. The Agency Worker Regulations 2010 also placed equal terms as a direct hire, however, must be paid additional employment law related responsibilities in between assignments where no work is offered. The basis of an employment business relationship on 2010 However, engaging someone on the Swedish with the work seeker is to provide temporary Regulations provide for agency workers to receive Derogation Model ensures that the individual, assignments with an end user. The obvious equal treatment in some areas as a directly hired although continuing to be placed on assignments effect of this is the exposure that the work seeker the employment business. The Free Advice for Employers on 0800 028 2420 www.peninsula-uk.com Page 2 of 3 Employment Law Guide for Employers HR Pitfalls of Recruitment Agencies will have to the end user, who may then decide to offer the work seeker a permanent job in their organisation, cutting out then need for the work seeker maintain the ‘agency’ relationship with the employment business. The employment business is not permitted to prevent the work seeker from taking a permanent job with the end user company at which they had been on a temporary employers. For example, it is currently a criminal • Working for a competitor; •Approaching his ex-employer’s clients or prospective clients; • Working with ex-employer’s clients or prospective clients even if they approached him; offence for an employment business to supply temporary staff to an employer whose permanent employees are on strike. It is not unlawful for an employment agency to supply workers to such an employer, however, the supply of workers would be on a permanent basis. The restriction on employment businesses is likely to be removed • ‘poaching’ his ex-employer’s employees. under current Government plans as part of a assignment with. Ensuring that the employee must wait until a Protecting the employment business’ or agency’s certain time period has passed until they can act interests in terms of its own employees is a in these ways enables employers to keep their separate issue. Restrictive covenants can be put in current sensitive information e.g. client lists and place, provided they are agreed with employees, charging structures to themselves. reform of trade union legislation as a whole. which can limit the actions of an employee for a defined period of time once they have left an The Conduct of Employment Agencies and organisation. Specifically, it is possible with a well Employment drafted covenant, to prevent employees from: many other restrictions on the operation of these Businesses Regulations place Free Advice for Employers on 0800 028 2420 www.peninsula-uk.com Page 3 of 3