The Conduct of Employment Agencies & Employment Businesses Regulations (2003) or 'Conduct Regs', is a framework of minimum standards that apply to recruitment agencies to ensure that end clients and candidates are fairly treated.
Guidance for Work-Seekers on Employment Agency Regulations
When you are looking for work, it's crucial to know your rights and the obligations of employment agencies and employment businesses under the Conduct Regulations (The Conduct of Employment Agencies and Employment Businesses Regulations 2003).
These regulations were created to protect you, ensuring fair treatment and transparency in the job-finding process.
Key Points Covered by the Conduct Regulations:
- Information Exchange:
- Agencies and employment businesses must provide clear and accurate information to both clients and contractors.
- This includes details about the job, pay, and any deductions or fees.
- Before introducing or supplying a work-seeker, an agency or employment business must:
- Verify the work-seeker's identity.
- Ensure the work-seeker has the necessary experience, training, qualifications, and authorizations.
- Confirm the work-seeker is willing to take the job.
- For roles involving vulnerable persons and requiring professional qualifications, specifically confirm the work-seeker’s identity and relevant qualifications.
- Contractual Documentation:
- All terms and conditions must be documented and agreed upon before starting work.
- You should receive a Key Information Document (KID) outlining important details like employment status, pay rates, and any fees or deductions.
- Payment Regulations:
- You must be paid for the work you have done, even if the agency has not been paid by the hirer.
- Transfer Fees:
- Agencies cannot charge clients transfer fees for hiring you directly or through another agency after a specific period:
- Whichever is later; 8 weeks from your last workday for the hirer via the agency OR 14 weeks from your first workday.
- Agencies cannot charge clients transfer fees for hiring you directly or through another agency after a specific period:
Your Rights and Protections under Conduct Regulations:
- No Fees for Job Finding:
- Agencies and employment businesses cannot charge you for finding a job, except for specific roles like entertainers and models.
- Protection from Retaliation:
- Agencies cannot treat you poorly or threaten you if you leave or intend to leave their services. Poorly treatment, however, doesn’t include:
- Losing future benefits: If you leave, you won't get benefits you would have earned if you had stayed (e.g., retainer/completion bonus).
- Paying back losses: If the agency or business loses money because you didn't do the work you agreed to, they can ask you to pay for those losses (e.g., not giving agreed notice for termination);
- Notice periods: It's okay for a contract to require you to give reasonable notice before you leave.
- You are not required to disclose who your future employer will be.
Conditions for Payment Withholding
Payment cannot be withheld for:
- Non-payment by the hirer.
- Lack of documentary evidence, if the work can be verified by other means.
- Work not done in other periods.
- Reasons within the agency’s control.
Information Provided to Hirers
Before supplying a work-seeker, the agency must verify:
- The identity and nature of the hirer's business.
- Job details, including role, location, working hours, health and safety measures, and required qualifications.
Specific Roles and Vulnerable Persons
For positions involving vulnerable persons or requiring professional qualifications:
- Agencies must obtain and provide copies of relevant qualifications or authorizations.
- Obtain two references from non-relatives and offer copies to the hirer.
- Ensure the work-seeker is suitable for the role.
Opting Out of Conduct Regulations Summary:
Contractors working outside of IR35 are advised to opt-out to maintain their deemed status. However, those operating inside of IR35 gain minimal benefits from opting out. Opting out means:
Agencies can impose restrictive covenants preventing work with competitors.
Opting out may offer greater flexibility by removing increased administrative burdens for agencies and potential delays (these include creating paperwork about the contractor’s suitability for the role and the client’s requirements, completing a Criminal Record Bureau (CRB) check for specific roles and checking the contractor’s qualifications that are required if regulations apply).
Summary of Benefits if You Stay Opted In
Guaranteed payment for completed work, regardless of agency payment status.
Clear documentation of job terms and conditions.
Freedom to work directly for the client after contract completion.
No charges for work-finding services.
Understanding these regulations ensures you are treated fairly and paid appropriately while seeking and performing work through employment agencies and businesses. Always make an informed decision about opting in or out based on your specific work circumstances.
Still have questions?
Give our friendly Customer Care team a call ☎️ or contact them @ customercare@nasagroup.co.uk ✉️