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This is a guest blog by Chartergates Audit Services
The Conduct of Employment Agencies and Employment Businesses Regulations 2003 (the “Conduct Regulations”) came into force in April 2004 setting out rules and obligations that employment agencies and businesses must adhere to. In particular, the rules focus on the tripartite relationship between the hirer, employment agency or business, and work-seeker.
Under the Conduct Regulations, when providing work-finding services, there are specific obligations owed directly to the work-seeker that must be fulfilled. In cases where the work-seeker is employed through an umbrella company, these obligations shift to the umbrella company, also known as the "incorporated work-seeker." Consequently, the employment business must depend on and trust the umbrella company to relay all relevant information to the individual performing the work.
The Employment Agency Standards Inspectorate (EAS) is tasked with enforcing the Conduct Regulations. While EAS works with agencies and businesses to help them follow the regulations, they also have enforcement powers against those who breach them. These powers include securing undertakings to implement corrective actions, issuing enforcement orders, if these undertakings are not followed, and prosecuting those who disregard such orders, which can result in imprisonment for up to two years or fines. Additionally, EAS has the authority to apply for a prohibition order, which can bar a person from managing or being involved in an employment agency or business for up to ten years due to misconduct or unsuitability.
Our roadmap to achieving compliance with the Conduct Regulations includes the following key steps:
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