New Template Documents for an Employment Business
Recruiting temporary or permanent workers
An organisation might find that an agency (either an “employment business” or an “employment agency” - see below) is its preferred route when looking to recruit temporary or permanent workers. It can often recruit more effectively through an agency than it can using its own resources. An agency is likely to find candidates more quickly (because it has suitable candidates on its database or it can locate candidates quickly), it might have already identified, screened, interviewed and assessed suitability of candidates, and/or it might have specialist knowledge of a particular industry sector or types of candidates.
Agencies have become more important to employers over the past couple of years, given the shortage of staff with certain skill sets and staff shortages in certain industries. As the UK emerged from Brexit and Covid, agency business activity was buoyant, but it remains to be seen whether that will continue during the remainder of 2022 and 2023.
Employment Business or Employment Agency
Confusingly, “employment businesses” are often also known as temp or employment agencies but “employment businesses” and “employment agencies” are actually distinct entities in law. It is important to be aware of the different rules and regulations that apply to each type of business. “Employment agencies” and “employment businesses” are defined and regulated by the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003.
An “employment agency” is engaged by its client (the “hirer”) looking to take on new staff. The agency introduces candidates to the potential hirer for direct employment by the hirer. The hirer enters into a direct relationship with the individual candidate (an employment contract or a contract for services) and is responsible for paying the candidate. Such appointments are generally known as “permanent recruitment” or simply “employment”. Employment businesses, on the other hand, supply a temporary worker to its client (“hirer”). The temporary worker remains employed by or under a contract of services with the employment business and will not usually also have a contractual relationship with the hirer.
Having clearly defined sets of terms and conditions is essential in order to comply with the 1973 Act and the 2003 Regulations. Two new templates have now been added to the recruitment company documents to facilitate this process.
Employment Business Representation Offer for Temporary Worker template
This is a new template representation offer letter. An employment business can use this representation offer template in conjunction with the existing Employment Business Temporary Worker Terms and Conditions template to create a contract between itself and a temporary worker. These two templates are intended to comprise all of the terms and conditions on which the employment business engages a temporary worker. Accordingly, the two documents cross-refer to each other.
Employment Business Key Information Document for Temporary Worker template
This new template is often referred to as a KID. Every employment business must issue a KID to every temporary worker that it is intending to engage; there is a legal duty under the Conduct of Employment Agencies and Employment Businesses Regulations 2003 to do so.
These two new valuable additions provide further resources designed to be used by an employment business when it is bringing new temporary workers onto its books to find work for them with its clients.
In addition, four existing sets of terms and conditions for use by recruitment agencies are also available. The first pair are designed for use by employment agencies that introduce work-seekers to clients for employment by the client. The second pair are designed for use by employment businesses that supply the services of temporary workers to the business’ clients.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.