Conduct Regulations
The Conduct Regulations were introduced in Great Britain in April 2004 and in Northern Ireland on the 25th September 2005 to raise standards within the recruitment industry. These Regulations stipulate how recruitment consultancies should operate, providing added protection for job seekers and companies using the services of recruiters. In many respects, the Conduct Regulations bring the law into line with the REC’s own Code of Professional Practice.
Recruitment consultancies are defined in law as either:
‘Employment agencies’, when introducing potential candidates for employment by you; or
‘Employment businesses’, if supplying temporary workers employed and paid by them.
Information to be supplied to you:
The conduct regulations state that as a client you must be given written terms of business by the agency or business supplying you with recruitment services. The recruiter must also
- confirm the identity of the job seeker,
- ensure that the job seeker has the experience, training and qualifications required for the position
- and check that they are willing to work in the position.
Agencies and businesses are also required to obtain information about the position from you including information on any risks to health and safety known to you and steps taken to prevent and control such risks.
Obligations to inform you if a job seeker is unsuitable
The Regulations introduced a new obligation on recruitment agencies and businesses to inform you if they obtain information that indicates the job seeker is or may be unsuitable. For businesses supplying temporary or contract staff this obligation is ongoing during the supply of the temporary or contract worker. In the case of employment agencies, they are obliged to notify you if they obtain such information during the three months after first introducing a candidate.
Transfer fees
Traditionally employment businesses charge a fee if a temporary worker is taken on permanently or transferred to another employment business or third party employer after a temporary assignment. Under the Conduct Regulations a transfer fee may be chargeable provided the employment business has given you the option of an extended period of hire as an alternative to paying the fee.
The employment business may only charge a fee if the temporary worker is taken on within a period of 8 weeks after the end of an assignment, or 14 weeks from the start of the assignment - whichever is later.
Recruiters acting as employment agencies - that is, recruiters introducing candidates for permanent positions, they are not restricted in charging fees under the Regulations.
The Regulations dealing with temp to perm fees are complex and we would advise you clarify the position with your agency before you commence the cotnract. Even if the position is intended to be a temporary contract, it is a good idea to understand the recruiter's approach to transfer fees, in case the situation should change.
