Licences for employment agencies

Some employment agencies need a licence if they are supplying specific types of workers. Gangmaster licensing Agencies need to be licensed by the Gangmasters and Labour Abuse Authority ( GLAA ) if they provide workers for: agriculture horticulture shellfish gathering forestry food processing and packaging Licensing for nursing and domiciliary care agencies England Nursing and domiciliary care agencies in England may need to register with the Care Quality Commission ( CQC ). Wales Nursing and domiciliary care agencies in Wales may need to register with the Care and Social Services Inspectorate Wales . Northern Ireland Nursing agencies in Northern Ireland may need to register with the Regulation and Quality Improvement Authority . Domiciliary care agencies in Northern Ireland may also need to register with the Regulation and Quality Improvement Authority . Scotland Nursing agencies in Scotland may need to register with Social Care and Social Work Improvement for Scotland ( SCSWIS ) .

Before placing a worker with a hirer

Before placing a work-seeker with a hirer, you must get sufficient information from the hirer including: the identity of the hirer and, if applicable, the nature of their business the date the hirer needs a work-seeker to start and for how long the type of work, location, working hours and any health and safety risks and controls the experience, references, training and qualifications the hirer needs for the post or are needed by law any expenses payable by or to the work-seeker if you run an agency, the minimum wage, benefits, method of payment, and notice periods for termination of employment (where applicable) Professional qualifications If the work-seeker needs professional qualifications for the role, you have to get copies of these for the hirer. If you cannot get hold of the qualifications you must tell the hirer you’ve tried to get the information and what steps you’ve taken to do so.

Working with vulnerable people

Before you supply work-seekers to work with vulnerable people you have to: get 2 references on the work-seeker and offer these to the hirer make checks that the work-seeker is suitable for the role If the work-seeker needs professional qualifications or ‘authorisations’ for the role, you have to get copies of these and offer them to the hirer. Examples of authorisations include: proof of membership of a professional body criminal records checks If you cannot get hold of the authorisations, qualifications or references, you must tell the hirer you have tried to get the information. You must explain the steps you have taken. Criminal records checks Some industries such as childcare and healthcare need their workers to have criminal record checks from the Disclosure and Barring Service ( DBS checks). You may have to make sure that workers you supply have criminal record checks for these jobs.

Limited company contractors and opting out of the rules

Work-seekers registered as limited companies are also covered by the rules unless they say they want to opt out. In this case, the hirer must be told this and the rules will no longer apply. Workers who’ve opted out can decide to follow the rules again, but only when they’ve finished working for the hirer they opted out with. Limited company workers cannot opt out if they’re going to be working with vulnerable people.

You must not advertise a job without the full details of the position. You must also make sure the hirer has definitely said they’re looking for someone to fill the position. All job advertisements must: include the full name of your agency or employment business say if the job is temporary or permanent be advertised in Great Britain and in English If the rate of pay is included then, the advert must also include: the nature of the job the job location minimum experience levels details of any training needed to do the job

Fees to hiring companies (transfer fees)

If you run an employment business you can sometimes charge a transfer fee (called a ‘temp-to-perm’ fee) to hirers if they give a permanent job to a worker you’ve provided. You must include all transfer fees and conditions in your contract with the hirer. When you can charge a fee You can only charge a transfer fee if all the following apply: your contract with the hirer gives them the option to extend the worker’s assignment the hirer does not take the option to extend the assignment the hirer gives the worker a permanent job less than 8 weeks after the end of their initial assignment - or less than 14 weeks after it started if that’s later If the worker had more than one assignment with the hirer, and there were more than 42 days between assignments, the later assignment is treated as if it’s the first one. Example You supply a worker to a hirer for 4 weeks. The hirer then wants to offer the worker a permanent job. Your contract with the hirer says they have to pay a transfer fee unless they hire the worker from you for an extra 6 weeks. The hirer can pay the transfer fee now or keep hiring the worker from you for the extended period. Alternatively they can stop hiring the worker and wait 10 weeks before recruiting them directly. The supply terms for the contract extension cannot be worse than for the initial assignment, for example you cannot increase your rates. You must provide the worker for the whole period unless you cannot for reasons that are not your fault. Other fees You can also charge the hirer: a ‘temp-to-temp’ fee if they change to a different employment business and take the worker with them a ‘temp-to-third-party’ fee if they introduce the worker to a third party (for example, they send their CV to another employment business or hirer who employs them directly) an introduction fee if you introduce a worker to a hirer but do not supply them The conditions are the same as for temp-to-perm fees - except you do not have to offer the hirer a choice between the transfer fee and a contract extension with a temp-to-third-party fee. You cannot try to charge a transfer fee in any other situation. Hirers can recover any money they’ve paid for fees that are against the rules.

Employment businesses’ terms and conditions with work-seekers If you run an employment business you have to agree terms and conditions before starting to find work for work-seekers. These should cover: that you’re operating as an employment business the type of work you’ll find or seek to find for the work-seeker if those work-seekers are or will be employed by you under a contract of service, or apprenticeship, or a contract for services, and the terms that will apply an undertaking that you’ll pay the work-seeker for all work whether you’re paid by the hirer or not the length of notice the work-seeker needs to give and is entitled to get for assignments either the rate of pay or minimum rate of pay you reasonably expect to get for the work-seeker how often and when the work-seeker will be paid the amount of holiday and holiday pay details (the majority of work-seekers will be entitled to statutory holiday pay ) If the work-seeker is a limited company (and not opted out of the rules ) you must detail when they may be entitled to and be paid for time off. If you and the work-seeker agree any changes to the terms you must give them a new document with the details of the changes and when they start. This must be as soon as reasonably practical after the changes are agreed. Get help and advice Contact the pay and work rights helpline for help and advice.

Employment agencies and trade unions

You cannot refuse to provide services to work-seekers or to provide them on the same terms as others because: they’re not a member of a union or agree to become a member they’re a member of a union or will not agree to stop being a member they will not agree to make a payment (for example, to a union or charity) in lieu of union membership or to allow a prospective employer to deduct money from their pay to make a payment like this Employment tribunals Work-seekers can go to an employment tribunal if they think they’ve been unlawfully refused employment or the services of an employment agency on trade union membership grounds. They can make a claim against either or both the prospective hirer and the employment agency.

Providing non work-finding services

You can charge for other services like CV writing and transport to jobs. You have to put the terms and conditions for these in a separate document. You need to give this to the work-seeker before providing these services. You cannot make using other services you provide a condition of you finding work for someone. The terms and conditions should include: exactly what services or goods you will charge for the right to cancel the services at any time without penalty that the worker-seeker must give 10 working days’ written notice to cancel living accommodation and 5 working days’ notice for all other services, such as training courses If there is a change to the fees for the services details of this must be given to the work-seeker. If you take a fee from a worker’s wages, you must follow the National Minimum Wage rules. Gifts or benefits If you offer any gift or benefit to a work-seeker you must make clear the terms and conditions it’s offered on.

Protection of work-seekers and hirers

You must not introduce or supply a work-seeker to a hirer unless you’ve taken reasonable steps to make sure they’re both aware of any legal or professional body requirements for the work-seeker to take the position. You must also check to make sure the arrangement would not be against the interests of the work-seeker or hirer. Suitability of workers Employment businesses If you find out that a work-seeker might be unsuitable for the job you must: give the hirer that information make further enquiries about the work-seeker’s suitability and tell the hirer about this If you find out that the work-seeker is unsuitable for the job you must tell the hirer straight away and stop supplying the work-seeker to them. Employment agencies If you introduced a work-seeker to a hirer and find out within 3 months that they may not be suitable for the job, you must tell the hirer straight away.

Travel and accommodation for work-seekers

Accommodation When a job involves working away from home and the employment contract is directly with you, you cannot arrange a placement before taking all reasonable steps to make sure: there’s suitable accommodation ready for them before they start work the work-seeker has all the details of the accommodation including any costs and travel arrangements Under 18s Workers under the age of 18 have to get written agreement from a parent or guardian before they can take a job working away from home. Travel to and from work In some cases you’ll need to pay for or arrange travel from work. These are when: the work-seeker is not the hirer’s employee or is under 18 free travel or payment is arranged for the journey to work the work then finishes or does not ever start If this happens you must either: arrange free return travel pay the return fare arrange with the hirer to provide free return travel or to pay the fare These arrangements must be given to the work-seeker in writing. If a hirer does not meet the agreement it’s your responsibility to pay for the travel. Travel loans If you make a loan to a work-seeker to meet travel or other expenses you cannot make them pay back more than the original loan. Au pairs You cannot arrange work for au pairs if they’re asked to repay you or the hirer for the fare between the au pair’s home and place of work. Au pairs are allowed to pay for their fare, but this cost must not come out of their pay.

Employment agencies and businesses

Overview

If you run an employment agency or employment business you have to follow certain rules.

You cannot:

charge a fee to a work-seeker for work finding services
stop someone from working elsewhere or terminating their contract with you
make someone tell them the name of any future employer
withhold payments or wages due
supply a temporary worker to replace someone taking part in industrial action
charge for a uniform without telling the worker in advance
make unlawful deductions from pay

You must also make sure workers are:

paid for all the work they do
paid holiday
not forced to work longer than 48 hours a week
paid at least the National Minimum Wage
protected under health and safety laws
given a key information document and written terms of engagement (often known as a contract) before you start looking for work for them
given a written statement when they start work - this includes all workers, including those registered as limited companies

The rules are different for entertainment and modelling agencies and businesses.

Organisations not covered by the rules

The rules on employment agencies and businesses don’t apply to:

university appointment boards or services and certain other educational institutions
local councils
trade unions, employers’ organisations and certain professional members bodies
charities
certain services provided just for ex-members of HM forces or for people released from prisons and other institutions

Publications advertising work-finding services

If you run a publication or website totally or mostly aimed at providing a work-finding service you’ll normally have to follow the rules for employment agencies and businesses.

However, if job advertisements are only a small part of what is published then the rules probably don’t apply.

Paying work-seekers

Employment agencies

If you run an employment agency you aren’t responsible for paying a work-seeker after you’ve introduced them to a hirer.

Employment businesses

If you run an employment business you’re responsible for paying the temporary work-seekers you supply.

You must pay a temporary work-seeker for all the hours they work, even if you haven’t been paid by the hirer or the work-seeker hasn’t got a timesheet authorised by the hirer.

Difference between employment agencies and businesses

Employment agencies

Employment agencies find work for work-seekers who are employed and paid by employers. This is often called ‘permanent employment’ because once the worker has been taken on, they’re an employee of the company they’re working for. However, different rules apply to entertainment and modelling.

Employment businesses

Employment businesses (also sometimes known as agencies) engage a work-seeker under a contract who then works under the supervision of someone else. This is normally called ‘temporary agency work’ or ‘temping’.

Workers under these arrangements are paid by the business instead of the company they’re supplied to.

When a business does both it has to follow the rules for both employment agencies and employment businesses.

View a printable version of the whole guide

Employment agencies and businesses

Overview

Organisations not covered by the rules

Publications advertising work-finding services

Paying work-seekers

Employment agencies

Employment businesses

Difference between employment agencies and businesses

Employment agencies

Employment businesses

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Employment agencies and businesses

Overview

Organisations not covered by the rules

Publications advertising work-finding services

Paying work-seekers

Employment agencies

Employment businesses

Difference between employment agencies and businesses

Employment agencies

Employment businesses

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