Notice

Acting as an intermediary between persons seeking work and a hirer

Updated 30 August 2024

Are you acting as an intermediary between persons seeking work and a hirer?

If the answer is yes, you may be acting as an employment business or employment agency and there are legal requirements you should be aware of and following.

Where you are acting as an intermediary between a person seeking work and a hirer, then this activity may fall within the scope of both:

• The Employment Agencies Act 1973 (the act – as amended)
• The Conduct of Employment Agencies and Employment Businesses Regulations 2003 (the conduct regulations – as amended)

You may be operating as either:

• an employment business (which supplies temporary work-seekers to hirers)
• an employment agency (which introduces work-seekers to be employed under contract with a hirer)

These requirements could apply whether you are operating in the private, public or not-for-profit sectors.

Employment Agency Standards (EAS) Inspectorate

The Employment Agency Standards (EAS) Inspectorate is responsible for enforcing the provisions of the act and the conduct regulations. This legislation requires employment agencies and employment businesses to abide by specified minimum standards of conduct.

You can get further details and guidance about the legislation from the Employment Agency Standards Inspectorate and the conduct regulations.

Legal responsibilities of employment businesses and employment agencies

This non-exhaustive list outlines the key responsibilities you should comply with if you are operating as either:

• an employment business supplying temporary workers to hirers
• an employment agency introducing permanent staff to hirers

For more detailed information, see the guidance on the conduct regulations 2003.

You should:

1. Issue a Key Information Document to work-seekers. Employment business only.
2. Agree terms of engagement with the work-seeker before work finding services are provided. Employment business only.
3. Provide notice of the particulars of goods or services (whether to be provided by you or another person) before charging fees to work-seekers (for things such as DBS checks, uniform, training).
4. Confirm the work-seeker’s identity and that the work-seeker has the adequate experience, training, qualifications, and any authorisation deemed necessary by the hirer, or required by law or a professional body, to fill a position, before introducing or supplying to the hirer. Applies to all employment businesses. Only applies to employment agencies where the work-seeker is to work with, attend to or care for vulnerable persons.
5. Obtain suitable and sufficient information from the hirer regarding the details of the assignment or position before introducing or supplying the work-seeker to them. This includes details of any known health and safety risks and the steps taken by the hirer to control them.
6. Provide to the work-seeker the assignment or position details that you have obtained from the hirer.
7. Confirm to the hirer at the point you propose the work-seeker, that you have confirmed the work-seeker’s identity and that the work-seeker has the suitable experience, training, qualification and authorisations required to fill the role. Inform both the hirer and the work-seeker of any requirements imposed by law, or a professional body, that the hirer or work-seeker need to satisfy for the work-seeker to take up the position.
8. If operating as an employment business, you pay work-seekers for all hours worked at the agreed rate regardless of whether you have been paid by the hirer or whether there is any dispute over the work completed.
9. If the position to be filled involves working with vulnerable persons, you obtain and offer to provide to the hirer copies of the work-seeker’s relevant qualifications or authorisations, and 2 written references from non-relatives of the work-seeker who have agreed they may be disclosed to the hirer.
10. Keep records on these points that demonstrate your compliance.

You should not:

• charge fees to work-seekers for providing work-finding services
• force work-seekers to purchase any additional goods or services from you or third parties
• stop work-seekers from working elsewhere
• tell a work-seeker’s current employers they are looking for new work
• force work-seekers to tell you the identity of their future employers.

Consequences of non-compliance

These responsibilities are minimum standards required by the act and the conduct regulations 2003. EAS is willing to work with and enter discussions with businesses and support them in getting things right and to comply with the law.

However, failure to meet these minimum standards may result in enforcement action by EAS. This can include prosecution and if a person is found guilty of an offence, they are liable on conviction to a fine.

It is also open for EAS, where an offence has been committed, to consider a Labour Market Enforcement Undertaking (for a period of up to 2 years). If an undertaking cannot be agreed or, once in place, is not complied with, EAS can apply for a Labour Market Enforcement Order (for a period of up to 2 years) through the courts. If a person fails to comply with the order, they could be fined or imprisoned for up to 2 years.

The Secretary of State can also consider applying for a prohibition order against a person from carrying on or being concerned with the carrying on of an employment agency or employment business for up to a maximum of 10 years on the grounds of misconduct or unsuitability.

Further information

If you have any queries on the legislation, or if you are wondering whether your business activity falls within scope, contact an EAS inspector:

General enquiries

Employment Agency Standards Inspectorate
Old Admiralty Building, Admiralty Place
London
SW1A 2DY

Email eas@businessandtrade.gov.uk

Telephone 020 4566 5333

This note of general guidance, and any further information provided by EAS, may be used to help gain understanding of the legislation and is correct as of April 2023. However, they cannot provide definitive answers to individual queries and are not intended to be relied upon in any specific context or as a substitute for seeking your own independent legal advice on specific circumstances, as each case may be different.