REC Expels Recruiter ARZ Management Ltd for Breaking the REC Code of Professional Practice

ARZ Management Ltd has been expelled from membership of the Recruitment & Employment Confederation (REC) for breaching three principles of the REC Code of Professional Practice (the Code). 

Following the revocation of a Gangmasters Labour Abuse Authority (GLAA) licence, the REC sought to conduct a comprehensive investigation including inviting ARZ to answer questions from the REC Professional Standards Committee (PSC). 

ARZ did not respond to the REC’s repeated requests for information and engagement within the timeframe allotted to them for complying with the investigation. The PSC therefore based its decision on the GLAA’s investigation. The findings were that they had amongst other things contravened GLAA licensing standards, not ensured all workers were given copies of their contracts, or correct calculations of annual leave or holiday pay. In addition not all employees were provided with payslips.

The parts of the REC code which were therefore breached were, Principal 1 – respect for law, Principal 5 – respect for safety, and Principal 8 – respect for prompt and accurate payment.

REC Professional Standards Committee (PSC) chair Rebekah Handford said: 

“We expect the highest standards of compliance and customer service from REC members so that the REC badge is something clients and jobseekers can trust. The vast majority of our members recognise their responsibilities and operate professionally and ethically at all times. That said, when a member is found to have acted outside of our code we will take timely and robust action to deal with them.

“In instances where a complaint is made about an REC member, we investigate and where possible work with our recruiters to help them comply. However on this occasion ARZ didn’t respond to REC requests to help with the PSC’s investigations in a timely way. This left us with no option but to expel them based on the findings of the GLAA’s inquiry which lead to the revocation of their GLAA license.

“We have a duty to our members to deal robustly with instances of wrongdoing. We encourage clients and candidates with evidence of bad practice to get in touch so we can hold recruiters to account. Ensuring the highest professional standards are maintained throughout our membership is extremely important to us.”

All recruitment agencies must adhere to the Conduct of Employment Agencies and Employment Businesses Regulations 2003 and the Employment Agencies Act 1973, which are the main statutory rules governing the conduct of recruiters. REC members go beyond these statutory requirements and commit to follow the REC’s Code of Professional Practice.   

Ends

Media Enquiries

For more information, contact the REC Press Office on 0207 009 2157/2192 or pressoffice@rec.uk.com. An ISDN line is available for interviews on 0207 021 0584.

Notes to editors:

1. All corporate members are required to agree to adhere to the Code of Professional Practice, which is enforced through the REC’s complaints and disciplinary procedure. All corporate members must pass an online compliance test every two years to demonstrate sound understanding of relevant industry legislation. 

2. The REC Professional Standards Committee is made up of senior members of REC Corporate Member agencies, Fellows of the REC Institute of Recruitment Professionals (FIRPs) and usually a representative from the Confederation of British Industry (CBI) and the Trade Union Congress (TUC). Key members of REC staff also attend.

3. To qualify for REC membership applicant companies must be employment agencies or businesses which fulfill one or more of the following criteria:

• they have been trading for at least one year in the UK;

• they are owned or operated by one or more individuals with more than one year of experience working in the recruitment industry;

• they are owned or operated by one or more individuals who have attended the REC 3-day ‘Start up your own agency’ course.

4. The REC is unable to investigate the conduct of agencies or individuals that are not REC members. Complaints regarding a non-member should be referred to the Employment Agency Standards Inspectorate (EAS) at the Department for Business, Energy & Industrial Strategy (BEIS). EAS has statutory authority over all recruitment agencies.

5. The REC is all about brilliant recruitment, which drives our economy and delivers opportunity to millions. As the voice of the recruitment industry, we champion high standards, speak up for great recruiters, and help them grow. Recruitment is a powerful tool for companies and candidates to build better futures for themselves and a strong economy for the UK. Find out more about the Recruitment & Employment Confederation at www.rec.uk.com.