Provision of Services Regulations
The Provision of Services Regulations 2009 require service providers to make available certain information to service recipients – some of this information must be provided before contracting with the service recipient, other information must be supplied on request. This section will tell you what you need to know about the Regulations.
What are the Provision of Services Regulations 2009?
The Services Directive (Directive 2006/123/EC) aims to open up the internal market in the European Economic Area (EEA) in respect of the provision of services. The Directive requires every EEA state to:
- remove barriers to setting up business in that state i.e. any requirements which inhibit the setting up or carrying on of services in that state;
- prevent service providers from discriminating against service users on the grounds of nationality or residence, and
- set up a single point of contact to enable businesses to obtain all the information required about providing services in that state and to provide a means to complete all necessary formalities to carry out that service. The UK Point of Single Contact is “UK Welcomes” managed by Business Link * and accessible here (* to be replaced by GOV.uk in October 2012).
The Provision of Services Regulations 2009 (the “Regulations”) implement the Services Directive in the UK. The Regulations came into effect on 28 December 2009.
Who do the Provision of Services Regulations 2009 apply to?
The Regulations apply to all service providers except those within certain industries namely, financial services, electronic communications, transport, healthcare, audiovisual, gambling and social care).
In addition, they do not apply to temporary work agencies (the term used in the Services Directive) when acting as “employment businesses” and placing or hiring out workers to clients of those agencies.
However, the Regulations do apply to:
- any other services provided by employment businesses (e.g. CV writing services); and
- the services provided by employment agencies i.e. the introduction of work-seekers to clients for direct engagement by that client whether under a permanent or fixed-term contract of employment.
What do employment agencies and businesses have to do to comply with the Provision of Services Regulations 2009?
The Regulations require service providers to make available certain information to service recipients – some of this information must be provided before contracting with the service recipient, other information must be supplied on request. In order to comply with the Regulations you should:
- Check that you have made the required information easily available and accessible in a clear and unambiguous manner in good time before the conclusion of a contract with a customer or where no written contract is concluded, before you provide your services. In general terms the information you need to make available is:
- contact details, including postal address, fax number or email address, telephone number and official address (e.g. registered office);
- your name and legal status;
- geographic address where you can be contacted;
- your trade or public registration;
- any relevant authorisation scheme in the UK and details of the regulating authority;
- if your activity is subject to regulation in another member state the details of the particulars of the regulation or the single point of contact in that state;
- your VAT number if applicable;
- details of any regulating body if you are a regulated profession;
- any general terms and conditions of business;
- contractual terms concerning the applicable law or jurisdiction;
- the existence of any after-sales guarantee you offer which is not imposed by law;
- details of any pre-determined price for your services;
- details of the main features of your services;
- if you are required to hold professional liability insurance or guarantee, details of the insurers or guarantors and the territorial coverage of the insurance or guarantee;
- details of any code of conduct you are subject to and you must provide a detailed description of any dispute resolution services included in that code of conduct.
You also need to make the following information available if requested:
- the price of your services or how the price is calculated, if not pre-determined, or an accurate estimate of costs;
- details of any professional rules that apply to you;
- details of other activities undertaken which are linked to the service and details of any measures taken to avoid conflicts of interest between the two activities.
- Make sure you have a complaints handling procedure which means you can fulfil your duty under the Regulations to respond to complaints as quickly as possible, and use your best efforts to find a satisfactory solution to complaints (unless a complaint is obviously vexatious or malicious). REC Corporate Members can use the Model Complaints Policy.
- Check that you do not operate your business in any way which discriminates on the basis of place of residence, e.g. offering different terms and conditions based on location, unless this can be objectively justified.
REC Corporate Members can use the Model Provision of Information Form.
Full guidance on the Regulations is available from the Department for Business, Energy & Industrial Strategy website.
Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.