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04/10/2010
GOOD NEWS! Conduct Regulations - Removal of obligations on permanent recruiters

This week sees a number of new regulations coming into force, including revisions to the Conduct of Employment Agencies and Employment Businesses Regulations, the principal piece of legislation covering the recruitment industry. The review of the current regulations followed ongoing feedback from recruiters on the need to cut red tape.

From October 1st, certain requirements on permanent recruiters will be removed, including the legal obligation to check every permanent candidate’s credentials and references and the need to be identified as an ‘employment agency’ in advertisements.

There is also no longer a legal obligation to obtain agreement to terms from clients and candidates – although this should still take place as good business practice and is something the REC will continue to enforce through the Code of Practice. Commenting on the revised regulations, Lewina Farrell, the REC’s Head of Professional Services, said: "The streamlining of the Conduct regulations was a good lobbying win.

Our recent discussions with the Employment Relations Minister confirmed opportunities for more of the same and we are currently collating feedback from recruiters on other existing regulations that should be stripped down. Some activities that are no longer legal obligations – such as agreeing terms - should still take place as part of sound business practices. "Others – such as the checking of references – may still be provided by permanent recruiters as an additional service to clients.

The REC legal team will be working with members to explain and implement the changes to the conduct regulations." Changing requirements on permanent recruitment that will come into force are as follows:

Removal of the requirement to obtain a candidate’s agreement to terms stating the type of work they are looking for and the fact they are looking for permanent work.

Removal of the requirement to obtain a client’s agreement to terms of business. This does not mean that agencies should not continue to issue terms of business to clients or that they should not make sure the client accepts those terms before introducing candidates as this is just good business practice. But the regulatory obligation to do so is removed.

Removal of the requirement for terms to be recorded in a "single” document. Terms must still be recorded in writing but they may be in "one or more” documents with copies provided as soon as reasonably practicable; Agencies retain an obligation to check a candidate’s identity, obtain copies of qualifications and two references but only for those candidates working with vulnerable persons.

There is no longer a need to carry out these checks for other roles where there is a legal requirement to have qualifications as this will be the responsibility of the client; Advertisements need no longer indicate if you are an "employment agency” but must state if the work is "temporary or permanent” work. Other new regulations going live tomorrow include the Equality Act and change to the National Minimum Wage (NMW). Specific updates on these areas have been made available to REC members