Changes for Temporary Recruitment Agency Workers

Changes for Temporary Recruitment Agency Workers

Changes for temporary recruitment agency workers.  With effect from 6 April 2020, temporary work agencies must provide agency work-seekers with a Key Information Document.  This change comes under the Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2019 (SI 2019/725).

The government has also announced plans in the Good Work Plan to expand the remit of the Employment Agency Standards Inspectorate (EASI) to cover umbrella companies.

Key facts:

All employment businesses will be required to provide agency work-seekers with a Key Information Document.  This document must contain specific information including:
  • the type of contract,
  • the minimum expected rate of pay,
  • how they will be paid
  • who will pay them (for example, by an intermediary, umbrella company or the agency direct),
  • deductions or fees that will be taken,
  • any non-monetary benefits to which they will be entitled,
  • entitlement to annual leave and payment in respect of such leave.  This should include illustrative example of what this might mean for their take-home pay.
This requirement will be enforced by the Employment Agency Standards Inspectorate.

Investigating umbrella companies

The government will expand the remit of the Employment Agency Standards Inspectorate (EAS) to cover umbrella companies. This follows the conclusion in the Taylor Review that umbrella companies sometimes play a questionable role in relation to lower skilled, lower paid agency workers. They can create uncertainty over who is responsible for employing or paying the workers, and can charge the workers administration fees which are not entirely clear. EAS will focus on situations where agency workers are not being paid properly.
The timescale for this development is not known.

Reassurance to employers

Fairways shall never use umbrella companiesWe take our employment responsibilities seriously.  As a result, we are responsible for employing and paying our temporary agency staff when they take on work assignments.