New Member Standards

When applying for REC Membership, applicants can decide whether to adopt the REC Model documents, provide copies of their own documents for checking, or a combination of the two.

It is the role of the Membership Department to check applicant’s own documents to ensure that they comply with the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (Conduct Regulations) and with the requirements of REC membership.

Below is a list of the documentation you are required to provide (or adopt) along with a checklist of what is required to be included in the documentation as outlined in the Conduct Regulations.

Client Terms of Business for the Introduction of Permanent Staff or Contract Staff to be Engaged Directly by the Client

Terms should be agreed between you and the Client. These terms must be recorded in a single document, or contract, and unless the Client already has a copy, a copy must be sent to the Client as soon as possible. These terms must:

State that you are acting as an Employment Agency.
Provide details of any fees, including the amount or method of calculation.
Provide details of any refund or rebate that you offer including the circumstances in which these may be payable. If you do not provide any refund or rebate a statement to this effect must be included.
Provide details of the Agency’s authority, if any, to act for the hirer.

These Terms must not state:

That you will change any of the terms without prior notice or agreement with the Client. (Where changes to the terms are agreed between the Agency and Client, these must be confirmed in writing as soon as possible, stating the date on which such changes will come into effect)

Permanent Candidate Agreement

Agreement to terms with permanent work-seekers must be obtained before providing any work seeking services and must include:

A statement that you will be acting as an Employment Agency.
The type of work you will be seeking to find for the work-seeker.

Client Terms of Business for the Supply of Temporary Staff Services

State that you are acting as an Employment Business.
Provide details of any fees, including the amount or method of calculation.
Provide details of any refund or rebate that you offer including the circumstances in which these may be payable. If you do not provide any refund or rebate a statement to this effect must be included.
Provide details of the procedure to be followed if a temporary worker proves unsatisfactory.
Specify in what circumstances transfer fees apply.
- You must not indicate that you would charge a transfer fee if the worker’s employment with the client, or supply through another employment business, starts either more than 8 weeks from the end of initial supply, or 14 weeks from the start.
- That you provide a client with an option to extend the period of temporary supply as an alternative to paying a transfer fee.

These Terms must not state:

That you will change any of the terms without prior notice or agreement with the Client. (Where changes to the terms are agreed between the Agency and Client, these must be confirmed in writing as soon as possible, stating the date on which such changes will come into effect)

Contract with the Temporary Worker (Terms of Engagement/Contract for Services)

Terms should be agreed between you and the Temporary Worker prior to providing any work-seeking services. These terms should be recorded in a single document, wherever possible, and a copy must be given to the Temporary Worker as soon as possible. These Terms must:

Specify the type of contract e.g., contract for services or contract of service (employment) that the Temporary Worker will be engaged under.
Include a statement confirming that that worker will be paid for hours worked regardless of whether or not you are paid by the client.
Specify the length of notice that the Temporary Worker is required to give and is entitled to receive in order to terminate particular assignments.
Specify either the actual rate of pay or the minimum rate of pay you reasonably expect to achieve for the Temporary Worker.
Specify the intervals in which payment will be made.
Include details of annual leave entitlement and holiday pay.
State that you will act as an Employment Business.
State the type of work that the Temporary Worker will be supplied to do.

These Terms must not state:

That payment to the Temporary Worker will be withheld on any of the following grounds:
- That the Client has not yet paid or is withholding payment
- That a timesheet has not been submitted, unless you have also made enquiries with the Client and they have not verified that the work in question was carried out.
- As a penalty for any reason i.e., for lateness, absence, failing to complete an assignment etc. (Workers must be paid for all hours actually worked
That you will be charging Temporary Workers a fee for providing work-seeking services.
That the provision of work-seeking services is conditional upon the Temporary Worker either:
- Using other services for which you charge a fee; or
- Hiring or purchasing goods, whether provided by you or any person.
That a Temporary Worker may be threatened or subjected to any detriment on the following grounds:
- That they have terminated or given noticed on their contract with you; or
- That they have taken up or propose to take up employment elsewhere
That the Temporary Worker is required to inform you of the identity of any future employer.
That you will change any of the terms without prior notice or agreement with the Temporary Worker. (Where changes to the terms are agreed between the Agency and Temporary Worker, these must be confirmed in writing, within 5 working days, stating the date on which such changes will come into effect)

Limited Company Contractors

When supplying Limited Company Contractors who remain within the Conduct Regulations the requirements as set out above will apply with the following differences:-

The payment arrangements will be described differently as the Contractor would normally invoice you through the limited company.
The Contractor will be responsible for their own tax and national insurance.
The Contractor will be responsible for their own holiday pay from their limited company. It is not your responsibility as an Employment Business to distinguish basic pay from holiday pay.
Contractors may state that they reserve the right to provide a substitute worker should the Contractor be unavailable. This is fine as long as it is clear that all the same practices would be carried out in respect of the substitute as for the original Contractor, as the Conduct Regulations will apply to all who might be supplied under this contract.

For Limited Company Contractors who choose to Opt Out of the Conduct Regulations you must obtain clear written agreement to the Opt Out.

Complaints Procedure

As a requirement of REC membership you must have a complaints procedure that enables clients and work-seekers to make a complaint to the agency. Ideally, this should include:-

Information on whom to contact with a complaint. This should be the MD or another named individual with clear responsibility for handling complaints
What the process involves along with timescales within which a complainant can expect a response
The process for appealing a decision whether this is by appealing to a more senior manager and/or referring a complainant to the REC.
An alternative process for dealing with the complaint in writing in cases where a complainant does not wish to have a meeting with the Agency.

Equal Opportunities and Diversity Policy

As a requirement of REC membership you must have an Equal Opportunities/Diversity Policy in place that meets all of your legal obligations under anti-discrimination legislation and promotes diversity in both your employment practices and in the operation of your recruitment business.

This should cover: sex, sexual orientation, gender reassignment, marital or civil partnership status, age, disability, colour, race, nationality, ethnic or national origin, religion or belief, political beliefs or membership or non-membership of a trade union, or spent convictions.

For further information on the Standards required for REC membership please contact:

Kelly Farebrother MIRP CertRP, Membership Standards Assessor - 020 7009 2108.

Please note that Kelly works part-time and is available on Mondays and Tuesdays only. For urgent queries outside these days please contact:

Peter Copus, Head of Membership Delivery - 020 7009 2174.

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