The Future of Regulation in the UK Recruitment

The Future of Regulation in the UK Recruitment Industry Presented by: Samantha Hurley Head of External Relations 1 st October, 2014

Conduct of Employment Agencies & Employment Businesses Regulations Conduct Regs identified by Red Tape Challenge as complicated and difficult to understand January 2013: consultation on the principles of reform – four outcomes 1. Restriction on charging fees to workers 2. Clarity on who’s responsible for paying workers 3. Contracts shouldn’t hinder workers’ movement between jobs – reasonable temp to perm fees 4. Workers have confidence to use sector & assert their rights

Conduct of Employment Agencies & Employment Businesses Regulations July 2013: Government response proposed new regulatory framework including: Payment not withheld from workers Restriction on charging fees to workers Clarity on responsibility for paying workers Preventing penalties for early termination Preventing unreasonable temp to perm fees Change definition of “Employment Agency” to remove job boards from scope of regulations Retain limited company opt out

Conduct Regs – the future Consultation on the detail is due out last week Oct Timed to coincide with response on “prohibiting advertising jobs exclusively in other EAA countries” Will only be a six week consultation Won’t be a complete rewrite as previously signalled Will revoke certain regulations Small amendments to other regulations

Conduct Regs – the future Retained more than the previous consultation response envisaged Retained more candidate protection Definitely keeping limited company opt out Aim to be laid before Parliament in Jan/Feb 2015 Debated during Feb/Mar, to come into force on 6 th April 2015

APSCo’s View Welcome review of out-dated/badly written regs Support regulation to protect the vulnerable More differentiation of professional sector, where highly-paid business to business relationships Simplification of opt-out process Simplification of the current Reg 10 – transfer fees Any change causes disruption - without major amendments, concerned that small changes will be positive for the industry

Prohibition on Advertising Jobs Exclusively in Other EAA Countries Consultation in Summer 2014 Prohibition on advertising GB roles in other EAA countries without simultaneously advertising in the UK and in English Response late October 2014 Will be incorporated in Conduct Regulations Plan to tackle recruitment firms that discriminate against GB workers Politically motivated rather than based on evidence

Small Business Enterprise & Employment Bill December 2013: consultation on Building a Responsible Payment Culture May 2014: Government response Prompt payment in the public sector Incentivising fair, transparent payment practices Strengthening the prompt payment code Length of payment terms – sectoral based approach Credit information & management Access to alternative/affordable finance

Small Business Enterprise & Employment Bill presented to Government at the end of June Statement on tackling contractual barriers such as bans on assignment Public Bill Committee stage, due to meet mid October 2014 Response expected early November APSCo continues to lobby for action on “pay when paid” clauses

Thank You Samantha. hurley@apsco. org