Recruitment agencies face shake-up

The Government is planning a shake-up of agencies in the recruitment sector as part of a package of changes announced by Business Secretary Vince Cable.

Dr Cable said the Government will consult in the spring to streamline the current regulatory regime for the recruitment sector as part of what was described as the most radical reform to the employment law system for decades.

Vince Cable Speaking to the Engineering Employers' Federation in London Dr Cable said: "We have plans to simplify and streamline the UK's recruitment sector to help smooth the path into work. It is an absolutely key part of our flexible labour market, enabling companies to respond to fluctuating demand and giving individuals an important entry point into the jobs market.

"Around two million people find work through the recruitment sector - but the rules that hiring businesses must comply with are hugely complex. We are going to consult next year with a view to scrapping unnecessary rules and making the remaining ones more comprehensible to business, so they can use agency workers as flexibly as possible."

In response to the Government's stated intention to streamline the current regulatory regime for the recruitment sector, Stuart Davis, Chairman of the Freelancer and Contractor Services Association said: "It is fitting that Vince Cable echoed David Cameron's support for the flexible workforce on National Freelancers Day. As they both agreed, the flexible workforce gives our economy an impressive competitive advantage and the FCSA welcomes their proposals to simplify and streamline the regulatory process around recruitment which will enable the flexible workforce to flourish.

"However, whilst we strongly support a reduction in Red Tape around recruitment of the self-employed highly skilled, specialist workers who make up a large section of the flexible workforce, the Government must also take measures to protect vulnerable temporary workers. Treating this highly differential group with a 'one size fits all' regulatory solution risks damaging the flexible workforce and consequently diminishing their potential contribution to the UK economy.

"Mr Cable and Mr Cameron must not only recognise the importance of this contribution to the economic recovery but also ensure all proposed regulatory change is tailored accordingly."

Criminal Records

Vince Cable also promised a simpler process which should assist freelancers operating in a sector which requires Criminal Records Bureau checks. The length of time required to conduct a CRB check sometimes means that people are not able to start the contract or position they have been offered. In addition there is a requirement to get fresh clearance each time someone changes jobs - at £44 a time.

Mr Cable said that the Home Office has pledged that, from 2013, once a CRB check has been conducted the results will be available and instantly accessible online, for employers to confirm no new information has been added since the check was conducted. For a small annual fee, the individual's record will be kept up to date – putting an end to delays and repeated expensive applications.

Mr Cable said: "This long overdue reform will be a particular relief to employers and self-employed people who have to obtain a new check for each new contract. It is a simple change that will bring real benefits and make the search for a job that little bit easier."