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Stuart Gentle Publisher at Onrec

Important changes to the law governing recruitment agencies come into force on 8 May 2016

Howes Percival comments on new Conduct of Employment Agencies regulations

News

The Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2016 come into force on 8 May 2016.

Comment

Paula Bailey, Employment Law Partner with Howes Percival comments:

"The key impact of these amendment regulations will be the extended restriction on advertising for work seekers outside of Great Britain which could result in increased timescales for recruitment processes."

Implications

The 2016 Regulations reduce certain regulatory burdens on employment agencies/ businesses and extend the restriction on employment agencies and employment businesses in relation to recruitment advertising outside Great Britain.

Details

The activities of the private recruitment industry are regulated by the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Business Regulations 2003). The 2016 Regulations amend the 2003 Regulations. The key changes are as follows:

Extension on recruitment advertising restrictions outside Great Britain

Agencies or employment businesses are banned from publishing a "relevant recruitment advertisement" in an European Economic Area state other than the United Kingdom, unless the advertisement is published in English in Great Britain at the same time as it publishes the advertisement (or it has been advertised in English in Great Britain for 28 days prior to the day on which it is advertised in the other EEA state).  This restriction was already in place for specific vacancies following the Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2014 but the 2016 Regulations extend this to any advertisement looking to attract work-seekers. 

No requirement to enter into terms with hirers

There will no longer be a requirement for employment agencies/businesses to enter into a written agreement to terms with hirers.  This is on the basis that this is a commercial matter for agreement between businesses.  In practice most businesses will want to agree written terms for certainty and clarity anyway.

Entering into contracts on behalf of work-seekers

There will no longer be a restriction on employment agencies/businesses entering into a contract on behalf of a work-seeker with a hirer or entering into a contract on behalf of a hirer with a work-seeker. 

Requirement to review

The Secretary of State must now carry out a review of the 2003 Regulations and set out the conclusions of the review in a published report within the next five years (and every five years after that).  

The full text of the Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2016 can be found here:

http://www.legislation.gov.uk/uksi/2016/510/introduction/made