Many people are not sure of where to go if they have a complaint or an issue with a Recruitment Agency. Here you will find the information you need to make sure you know what to do if you have a problem.
Employment Agency Standards
Employment agencies legislation and service standards.
Employment agencies in England, Scotland and Wales must comply with the Employment Agencies Act 1973 and regulations.
Employment Agency Standards Inspectorate is part of the Department for Business, Enterprise and Regulatory Reform (BERR). The Inspectorate carries out routine inspections of agencies and investigates complaints about agency conduct. The Inspectorate operates an enquiry line 0845 955 5105 (Monday - Friday 09:00 - 17:00).
The DTI , in association with the Recruitment and Employment Confederation (REC) and Equity, has also produced Guidance on the Conduct of Employment Agencies and Employment Businesses Regulations 2003. The REC is the main professional body for the UK recruitment industry. Equity is the trade association representing performers and personnel working across the arts and entertainment.
For guidance on the investigation of complaints process adopted by the Inspectorate see Employment Agency Standards - "General Enforcement and Procedural Guidance" and "Prosecution Guidance" for Inspectors.
Not sure if you should complain about an agency? As well as the guidance mentioned above, you can check our Frequently asked questions for agency workers. If you have more questions, please phone the enquiry line. Then if you want to make a complaint, you can either do it by phone or fill in our Employment agency complaint form (see Related Links).
Already operating an agency or thinking of starting one? Read our Frequently asked questions for agencies.
Can an agency charge me for finding me work or for registering with them?
A fundamental principle of the Employment Agencies Act is that workers cannot be charged for work finding services. The exceptions to this are the entertainment and modelling sectors. Please telephone the enquiry line on 0845 955 5105 if you have a query relating to this area.
Can I register with more than one agency?
Yes. There is no limit on how many agencies you can register with.
The agency says I am not allowed to work for the hirer I was placed with for several months after I leave them is this true?
No. The legislation forbids an agency from putting any restrictions on you working directly for the hirer whom you previously worked for. However, the agency could prevent you being being supplied to the hirer by another agency. Please telephone the enquiry line on 0845 955 5105 if you have a query relating to this area.
What is a temp to perm fee?
The agency's contract with the hirer for supplying them temporary workers may contain what is known in the industry as a temp to perm fee. This means that if the hirer wants to take you on permanently, they may need to pay an additional fee to the agency.
Your booklets talk about Employment Agencies (EAs) and Employment Businesses (EBs) – what is the difference?
An EA will introduce you to hirers that you are going to work for permanently (or work for on a fixed or short term contract). With this arrangement, your contract will be with the hirer you go to work for and not with the agency.
An EB (commonly known as a Temp Agency) will place you with hirers to work but your contractual relationship is with the EB and it is the EB that is responsible for paying you.
I know the difference between an Employment Agency (EA) and an Employment Business (EB). Does it make any practical difference to me?
Yes. If your contract with an agency is on an EB basis, they must pay you even if they have not been paid by the hirer themselves. If your contract with the agency is on an EA basis, they have to pass on money they receive on your behalf within 10 days of receiving it (unless you request otherwise). However, if they don't get paid, they don't have to pay you.
How can I tell if an agency is an Employment Agency or an Employment Business?
Most agencies will operate in both ways. You need to be sure what you are asking them to do for you, i.e. find you permanent and temporary work, and be sure you understand the contract that they ask you to sign.
Am I entitled to the National Minimum Wage?
Probably. Most workers must be paid the National Minimum Wage. See the DTI's NMW guidance. If you are not receiving the minimum wage, you can complain to the Inland Revenue who enforce the legislation.
My agency refuses to pay me holiday pay. Who should I talk to?
You can get advice on problems concerning holiday pay from Acas. You can read more about the Working Time Regulations in the DTI guidance -
Your guide to the Working Time Regulations: sections 1 - 4
My agency says I am not entitled to paid bank holidays, is this correct?
There is no statutory requirement for any worker (not just agency workers) to receive paid bank holidays. The Working Time Regulations guidance has more on this subject (see the link on the previous question)
Are agency workers entitled to Statutory Sick Pay?
The Inland Revenue offer this advice "There are various types of agency worker who may be regarded as employees for Statutory Sick Pay purposes. If a worker is treated as an employee for National Insurance contribution purposes, they will also be treated as an employee for Statutory Sick Pay purposes."
The Department for Work and Pensions also has guidance on SSP.
The Law on Employment Agencies
Employment agencies must comply with the minimum standards of conduct set by the Employment Agencies Act 1973 and regulations.
If you are a worker:
An agency must not charge for finding or trying to find you work (with some exceptions, mainly in entertainment and modelling)
An agency employing you to do temporary work must give you written terms, and must pay you, even if it has not been paid
An agency which collects your pay from an employer must pass it to you within ten days, unless you request otherwise. Normally this only applies to entertainment and modelling.
If you are a hirer:
- An agency should check workers have any qualifications required by law
- An agency should obtain enough information to show a worker is suitable for the job.
Other standards include:
- Advertisements placed by an agency must state that fact
- Requirements about what must and must not be included in written terms.
Under the Act, persons running an employment agency can be banned from doing so for up to ten years, for misconduct or other reasons. An agency breaking the law can also be fined up to £5,000.
This document shows only some of the regulations governing the agencies. If you would like to know more, please call the helpline or read Employment Agencies Act 1973: Guidance on the Act and regulations.
You can also write, or email us:
Employment Agency Standards Inspectorate
Department for Business, Enterprise and Regulatory Reform (4140)
1 Victoria Street
London
SW1H 0ET
Helpline: 0845 955 5105
International: +44 20 7215 5980
Fax: 020 7215 2636
E-mail: eas@dti.gsi.gov.uk for enquiries about Employment Agencies only.
For enquiries about other employment rights, please contact ACAS.
The Employment Agencies Act is there to protect all users of employment agencies – workers, employers and hirers.
If you feel you have been unfairly treated by an agency, or if you want advice, call our helpline.
Our inspectors investigate public complaints about agency conduct and will take action against an agency if necessary.
If you make a complaint to us we will investigate fully and in confidence if you request. We will tell you about our progress and results.
Consultation on Measures to Protect Vulnerable Agency Workers
The private recruitment industry has grown significantly in recent years. Currently there are some 17,000 employment agencies and employment businesses in the UK with an estimated 1 million temporary and contract workers and the industry now plays an important role in providing flexibility in Britain's labour market.
We have created a strong and stable economy, enabling businesses to grow and take advantage of opportunities offered by the global economy. A cornerstone of this success has been our flexible labour market, which combines the flexibility that both workers and employers seek within the provision of key protections for workers.
Success at work highlighted that while the UK employment legislation was in place we need to consider the issue of certain workers who maybe more at risk of being denied their employment rights and are less able to protect themselves.
Our intention in this consultation is to address the bad practices highlighted in Success at Work that affect the most vulnerable agency workers, but without placing burdens on the majority of reputable agencies, who do not use these practices. Simultaneously we are seeking to reduce burdens on reputable agencies where we can do so without removing important protections for workers.
Consultation on measures to protect vulnerable agency workers
DIRECTIVE 2008/104/EC ON TEMPORARY AGENCY WORK (The “AGENCY WORKERS DIRECTIVE - AWD”)
The main purpose of the AWD is to ensure the appropriate protection of temporary agency workers through the application of the principle of equal treatment and to address unnecessary restrictions and prohibitions on the use of agency work. The AWD follows similar directives on fixed term and part time work (which were based on European social partner agreements). Under the Directive “equal treatment” relates only to basic working and employment conditions of temporary agency workers (eg pay, working time); the Directive does not affect the employment status of temporary workers.
The Directive allows the UK to implement the agreement reached on 20 May 2008 between the CBI and the TUC, which means that after 12 weeks in a given job, an agency worker will be entitled to equal treatment (at least the basic working and employment conditions that would apply to the worker concerned if s/he had been recruited directly by that undertaking to occupy the same job).
TUC and CBI agreement
The agreement sets out how fairer treatment for agency workers in the UK should be promoted. Agreement was reached on a variety of issues including that after 12 weeks in a given job an agency worker would have an entitlement to equal treatment (at least the basic working and employment conditions that would apply to the worker concerned if they had been recruited directly by that undertaking to occupy the same job). It was agreed that occupational social security schemes would be outside the equal treatment provisions. This agreement helped break the deadlock on discussions in the EU by providing a basis on which the UK and other Member States could agree the AWD.
Next steps
There will be a detailed consultation in 2009 with interested parties on the options for UK implementation of the Directive and, in the light of responses, a date for entry into force of the regulations. BERR will have particular regard to avoiding unnecessary administrative burdens for business while ensuring agency workers receive the appropriate protections. The Government hopes to introduce the necessary legislation in the current Parliamentary session.
Please provide your details on the attached email link if you would like to be notified of updates and be included on the list of consultees.
