Employment agencies and employment businesses: regulatory aspects

by Practical Law Employment

A practice note considering the regulation of employment agencies and employment businesses under the Employment Agencies Act 1973 (EAA 1973) and the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (SI 2003/3319) (Conduct Regulations). It clarifies the distinct roles of employment agencies and employment businesses, their obligations towards both work-seekers and hirers, and the relationship with the Agency Workers Regulations 2010 (SI 2010/93) (AWR 2010). The note covers key compliance areas such as the requirement to provide a key information document (KID), rules on charging transfer fees, and the prohibition on supplying replacement labour during official industrial action. Additionally, it examines the regulation of relationships with work-seekers, including provisions on confidentiality and withholding payments, and the conditions for corporate work-seekers to opt out of the Conduct Regulations. It also addresses the proposed reforms for regulating the umbrella company market and enforcement by the Employment Agency Standards Inspectorate (EASI).