REC backs more coherent regulation of labour market

Commenting on reports of Labour proposing a Single Fair Work Agency, as part of their ‘Make Work Pay’ agenda, Shazia Ejaz, REC Campaigns Director said:

“We have long called for a more proactive and unified approach to the oversight of the labour market, as much to help employers do better as to help all types of employees, including temporary workers feel more sure-footed about their rights. So, we welcome the creation of this new body along the lines of what Matthew Taylor suggested in his Review of Modern Working Practices. Key to this approach working is to maintain the expertise of the Employment Agency Standards (EAS) Inspectorate to oversee this work. Ensuring they have enough capacity to take a comprehensive overview of the labour market will make or break the efficacy of this approach.

“And the need to bring this about is urgent given the recruitment supply chain is getting longer and more complex every year, with companies operating within it not subject to any regulation at all such as umbrellas.

“A note of caution though – any progress on enforcement needs to take account of temporary working as regulations designed with permanent workers in mind often leave agency workers and agencies unclear about what rules apply to them. This makes it harder for employers to do the right thing by workers even though they want to.
“A single point on enforcement will help our world-class flexible labour market continue to drive  economic success. After all, REC data shows there are close to one million workers engaged in agency work on any given day and a recent World Employment Confederation (WEC) survey of employers found that eight in 10 UK respondents said they will increase their use of agency workers in the next two years.”

Ends

Notes to editors:

Recruiters filled 25 million temp and contract roles in a year, according to the latest REC industry report, December 2023

Here to stay! Agency workers’ role in labour markets to grow, suggests survey, May 2024

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The REC is the voice of the recruitment industry, speaking up for great recruiters. We drive standards and empower recruitment businesses to build better futures for great candidates and themselves. We are champions of an industry which is fundamental to the strength of the UK economy.

Find out more about the Recruitment & Employment Confederation at www.rec.uk.com.