New consultations on recruitment legislation reforms and tackling exploitation

Nick Elvin

The Government has published two consultations on reforming recruitment sector legislation and tackling exploitation in the labour market.

Proposals include a new offence of aggravated breach of labour market legislation for the worst offenders, targeting employers who deliberately, persistently and brazenly commit breaches of labour law, and fail to take remedial action. Being found guilty could lead to a custodial sentence.

There are also plans to give the Gangmasters Licensing Authority (GLA) a wider remit to enable it to tackle serious exploitation. A reformed GLA would investigate exploitation of all workers, whether employed through an agency, gangmaster or direct employer, and trained staff would be able to use police-style powers so they can use search warrants to secure crucial evidence.

Also proposed is the introduction of a new Director of Labour Market Enforcement, to set priorities across enforcement bodies dealing with everything from criminal activity to payroll errors.

The consultation on recruitment legislation reforms will seek views on tougher rules to prevent recruitment firms recruiting solely from overseas without advertising in Great Britain and in English.

Regulation 27A of the Conduct Regulations, which came into force in January, already requires employment firms in Great Britain, if they are advertising a vacancy for a job based here, to advertise it in this country and in English either before or at the same time as advertising it in another European Economic Area (EEA) country. The Government now wants to prevent employment businesses filling vacancies here with only people from overseas without any advertising.

Responding to the consultation on reforming recruitment sector legislation, Samantha Hurley, head of external relations & compliance at APSCo, said: “We’re disappointed, but not surprised, that this is not the wholesale reform that we were promised by the previous administration. The consultation includes a proposal to expand the prohibition on advertising UK jobs solely in EEA countries to also include the prohibition of the recruitment of staff solely from other EEA countries as well.

“The biggest disappointment for our members will be that the unclear and highly complex rules around opting out have not been addressed – and also the restrictions on charging clients (when they take contractors) also known as the 8/14 week rule, which are currently incomprehensible to most people.

“In terms of the professional recruitment sector, the changes aren’t huge and after the battering that the sector has taken from HMRC in recent years, the good news is that at least it’s not entirely bad news.”

The Government’s labour exploitation proposals must be properly resourced, says TUC general secretary Frances O’Grady.

“Better coordination between labour enforcement agencies could be helpful, but only if properly funded,” said O’Grady. “There should be no hiding place for cheapskate bosses who try to cheat their workers out of their rights.

“The proposed Director of Labour Market Enforcement must have sufficient resources and a broad enough remit to ensure that all workers receive at least the national minimum wage and basic employment rights.”

Commenting on the proposals to change the remit of the Gangmasters Licensing Authority, O’Grady added: “The GLA has played an important role in clamping down on rogue employers and has increased compliance with standards across the board. If the GLA remit is to be extended it must be given the money it needs.

“A weaker GLA risks the rights of workers in agriculture and the fresh food industry. We cannot have another Morecambe Bay tragedy.”