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REC has been made aware of a scam that has affected members in the Midlands area. A potential client contacts employment businesses with a request for them to payroll a number of staff in the technical or engineering sectors for a period of a few weeks. He purports to be from a legitimate company operating in that sector and provides the company registration and address but the telephone number is not that of the company he purports to represent.

Not only should members make sure that all information provided by a potential client is accurate to avoid being a victim of fraud but members should also understand that agreeing to payroll staff without registering the staff correctly is a potential breach of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 and therefore may result in a prosecution and a fine by operating in this way.

Under those Regulations all employment businesses are required to agree terms with the workers they supply, confirm their identity and that they are suitable for the position by checking that they have the relevant experience, training and qualifications needed for the role. They are also required to confirm the worker's willingness to work and ensure that information about health and safety is supplied to the worker. None of this can be done without direct contact with the workers.

If members require further information on their obligations towards work-seekers they should consult Section 1A of the REC's Legal Reference Guide at www.rec.uk.com/legal