This guide explores the common HR pitfalls of recruitment agencies and offers guidance on how to avoid legal liabilities.
Being able to outsource recruitment to external agencies means a load of an employer’s mind. However, recruitment agencies, by lightening the burden on other employers, take on their own set of HR responsibilities and obligations. In fact, these types of businesses, technically known as employment businesses and employment agencies, have their own set of rules and regulations to abide by.
The Conduct of Employment Agencies and Employment Businesses Regulations 2003 are concerned with implementing safeguards to those working for employment businesses and set restrictions on charging arrangements. Failure to comply with these regulations can mean a financial penalty for the employer.
The Regulations make the distinction between an employment business and an employment agency. Employment businesses are companies which enter into contract with work seekers to find them temporary assignments but maintain an ongoing relationship with the work seeker e.g. make payments to them (rather confusingly, this situation is commonly referred to by the name of recruitment agency).
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