Welcome for Government decisions on agency regulation
The Association of Recruitment Consultancies (ARC) has applauded the Government for what it described as a considered approach on the consultation on reforming the regulatory framework for the recruitment sector.
Last week, we explained how the Government had reacted to views to change the regulation of agencies. There had been some concerns that they would move to a more self-regulatory framework.
Constructive
Adrian Marlowe, chairman of ARC, said: "The Government has set about change in a constructive and balanced way. Although the consultation itself raised some real fears that wholesale change was inevitable, with some potential significant negatives, the response indicates that those confusing areas that need addressing are to be tidied up and those that have underpinned stability and security for workers as well as standards, are to be retained, with a likelihood that they may be improved for the benefit of the industry as a whole.
"We are therefore pleased with the outcome so far. Ideas, such as the proposal to switch enforcement of breaches of regulations to the employment tribunal, a key point which ARC had strongly lobbied against, appear to have been rejected.
"At the same time arguments that ARC had proposed relating to payment arrangements for workers where there are various businesses involved in the chain of supply, such as vendors and RPOs, are under consideration."
Opted-out
ARC suggested that analysis indicated that the Government has rejected the idea that contractors should automatically be opted out of scope. Instead, company workers will continue to have the ability to opt out as now and enforcement of payment infringements for lower paid workers will be transferred to HMRC.
In addition the idea that agencies should be able to charge fees for providing work finding services has also been rejected.
However, removal of job boards from the scope of the regulations and restrictions on enforcement of transfer fees are still on the agenda, leaving open questions as to how these will be dealt with.
Mr Marlowe concluded: "As always the wording of new legislation, including any relating to transfer fees and payment arrangements, will be crucial in determining the end result. Overall, as things stand, key points of principle appear now to be in place, in our view producing a good balance, and this can only serve to strengthen and support the industry."