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Result from consultation on changes to Conduct Regulations is mixed news
Date: 16 Nov 2009
Points at a glance:
1. No change to opt out
2. New rules for advertising and suitability checks
3. New rules for transfer fees
4. Linked consultations defeat purpose
The government has published the response to its consultation earlier this year and the good news is that the Limited Company opt-out has not been touched, neither for limited company contractors nor for umbrellas. A change had been widely feared, and so this news is very welcome.
Changes are proposed to modelling recruitment companies and for those companies operating online. In addition Employment Agencies and Employment Businesses will no longer have to state what type of recruitment company they are in advertisements, but instead state whether the vacancy being offered is ‘temporary’ or ‘permanent’. Also, Employment Agencies will no longer have to carry out suitability checks for permanent candidates unless it is for a position where there will be contact with children or vulnerable adults nor will they have to agree terms with candidates or hirers before an introduction- although it will make commercial sense to continue to do so.
However the Government's review also covered the issue of transfer fees under Regulation 10. In that regard the response document states that the Government intends to make changes to include a requirement for reasonableness if transfer fees are to be recoverable. Adrian Marlowe, chair of ARC, said "there are two points. First the suggested change to the wording will undoubtedly place a very difficult burden on employment businesses and provide a significant advantage to hirers seeking to avoid payment.
Second, the suggestion here mirrors that already contained within the proposals for 2nd consultation under the Agency Workers Directive. This linkeage between one consultation and another is a strategy that in a real sense defeats the whole purpose of consultation. Under any consultation all relevant facts should be considered together so consultees can see the real picture, otherwise there is no point to it other than window dressing.”
ARC is addressing the key issues with Government.
