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08 Aug 2007

REC supports tough penalties for agencies that break the law

The REC has responded to the Government’s consultation on improving enforcement of the national minimum wage and employment agency standards.

Commenting on the proposals aimed at strengthening the enforcement effort, Tom Hadley, the REC's Director of External Relations said: “Recruitment agencies are already very tightly regulated but this is not enough unless the Government cracks down against the small number of agencies that are flouting the law. 

"The REC welcomes the new tougher penalties regime for rule breakers and the fact that the Employment Agency Standards Inspectorate will have more powers.  But these tough changes need to be coupled with an effective risk based enforcement regime that makes the most of the inspectorate’s resources.”

Higher fines for those that breech the national minimum wage rules are also welcomed.  Hadley continues: “Businesses that pay under the minimum wage are a threat to workers and other legitimate businesses who they can undercut. 

"We are encouraged to see better co-operation between different Government enforcement agencies, but this needs to be built upon to make sure that unscrupulous companies are put out of business.”

The REC has a comprehensive Code of Professional Practice to which all its members sign up.  The REC’s Professional Standards team takes complaints from jobseekers and others investigating where it is alleged that the Code has been breached.  The REC will also alert the relevant authorities where statutory breaches are found.  Jobseekers should look for the REC badge when looking for an agency that works to high standards.

The REC's response to this consulation can be downloaded at http://www.rec.uk.com/about-recruitment/externalrelations/consultations