Get to work now on agency reform to boost economic growth - REC

Responding to the government setting out its proposals to modernise the way recruitment agencies are regulated, Neil Carberry, Recruitment and Employment Confederation (REC) Chief Executive, said:

“A million people went to work via agencies this morning because it is what they want. Agencies are the first port of call for people who need flexibility, those who have highly sought-after skills that can be shared by contracting and people in need of a step change in their career.

“If this consultation is genuinely about supporting the sector and enhancing its contribution to better working lives, we will be all for it. But with huge changes already in train from the Employment Rights Act – including the totally inappropriate and damaging application of Guaranteed Hours rules to temporary workers, which other countries rightly swerved – we will judge the government on their actions, not their words. A truly pro-worker agenda is one that enhances the contribution of agency work with good standards and an understanding that agency work is good for workers and good for prosperity.”

Neil Carberry added:

“Umbrella regulation is long overdue. We regret that tax liability changes are being introduced this Spring before these new powers are enacted, opening agencies and clients up to undue risk. 

“We also support improvements to KIDs and strongly encourage agencies to get this right. Streamlining the process may help achieve this.

“The Conduct Regulations work. They are part of a strong floor of protection that agencies need but are over 20 years old. Any reform must be careful as these are part of the underpinnings of the labour market. We agree that there is scope to improve the Agency Workers Regulations too, without damaging the rights of workers.

“The biggest issue for agencies is in the Employment Rights Act and in tax reform this Spring, neither covered here. The consultation outcome, the Employment Rights Act and tax reforms must create a system that protects workers and still gives firms the confidence to hire and help people progress. If we fail to strike that balance, the whole effort will stumble and fall and workers will be the losers as unemployment rises.”

Notes to editors

Make Work Pay: modernising the Agency Work Regulatory Framework, 6 February 2026