|
The word “Agency” is a very broad term to describe companies that operate in the private recruitment industry. However, the type of service they provide can vary significantly and this may have a direct impact on their employment relationship with you.
In the UK, “Agencies” are defined according to the type of service they offer, as follows:
Employment Agencies:
-
Recruit staff for direct employment with their clients – either on short term or permanent contracts.
-
Employment Agencies are not allowed to pay or make arrangements for anyone else to pay the salaries of staff recruited by them. This is the employer's responsibility.
Employment Businesses:
-
Employment Businesses supply staff on temporary contracts to their clients.
-
The Employment Business is the employer for the duration of the contract and responsible for paying wages, leave pay or statutory benefits and for deducting any tax or National Insurance payments.
Recruitment Businesses can offer both services. However, they are required to tell you whether they are acting as an employment agency or an employment business when offering you a job. This to ensure that you are aware of who will employ you and be responsible for paying your wages and any deductions.
In the UK, the private recruitment industry is governed by the “Employment Agencies Act 1973” and the “Conduct of Employment Agencies and Businesses Regulations 2003”, which sets out the limitations and obligations applying to both types of business.
|
