Whether it is for full time, part time or temporary workers, many businesses find that agencies are the preferred option when it comes to recruitment. Running an employment agency or a temp agency (officially known as an “employment business”) can thus potentially mean big business.
Employment agencies and employment businesses are regulated by the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003. Having a clearly defined set of terms and conditions is essential when complying with such legislation.
Spot the Difference
Confusingly, employment businesses are often also known as employment agencies but they are actually distinct entities and it is important to be aware of the different rules and regulations that apply to each. An employment agency is engaged by its client (the hirer) and introduces candidates to potential employers for direct employment. 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 temporary workers to their clients. The temporary workers remain employed by (or under a contract of service / for services with) the employment business and will not usually have a contractual relationship with the hirer.
There will inevitably be cases in which an employment business supplies a temporary worker who subsequently becomes directly employed by the employment business’s client. Detailed clauses in the relevant terms and conditions address this situation from a number of angles including the direct employment or engagement of the temporary worker where there has been nothing more than an introduction of the temporary worker to the client but no assignment.
Terms and Conditions
Simply-docs has created four sets of terms and conditions: the first pair are designed for use by employment agencies; the second, for employment businesses. Each document contains extensive terms and conditions and offers flexibility, enabling users to tailor the terms of business to meet their needs.
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