New NMW enforcement team welcomed by recruitment sector

RA Now

Recruitment bodies have welcomed the government’s plans to devote more resources to tackling non-payment of the national minimum wage in the recruitment sector.

Following public consultation, the Employment Agency Standards Inspectorate (EAS) will be split, moving a team to HM Revenue & Customs’ National Minimum Wage team, the minister for employment relations and consumer affairs Jo Swinson announced.

The move, part of the government’s reforms to the regulatory framework of the recruitment sector, will leave a small team at the Department for Business, Innovation and Skills to enforce the recruitment sector regulations and deal with any complaints against recruitment agencies via the Pay and Work Rights Helpline.

The simplified regulatory framework, which will replace the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Business Regulations 2003, is designed to remove burdens from business while protecting jobseekers. 

Agency bodies said the reforms showed the government has listened to the views of the recruitment sector during the consultation process.

Adrian Marlowe, chairman of the Association of Recruitment Consultancies, said the government’s focus on protecting the most vulnerable agency workers is to be commended.

“This can be nothing other than a positive step for those workers and for the overall reputation of the industry which has, particularly in the lower paid sectors, been damaged by the few that abuse the system,” he added.

Samantha Hurley, head of external relations at APSCo, said the draft response is in line with what the sector was calling for. “It further reinforces BIS’ commitment to work closely with the staffing sector to create legislation fit for today’s employment market, and not, as has been the case in recent years, a ‘one size fits all’ approach,” she added.

The industry also welcomed the news that the complaints facility at the EAS is to be retained.

“We hope that this approach will also be reflected in a sensible body of rules to regulate the industry within the new regulations promised for next year, and that current iniquities, which, for example, allow RPO organisations to dictate unfair payment terms at the expense of small and medium-sized business, will be eradicated,” Marlowe added.

Tom Hadley, director of policy at the REC, said the announcement recognises that effective enforcement is crucial for protecting workers’ interests and ensuring a level playing field for law-abiding businesses in our sector.

“This new structure must be implemented effectively, and we have called for a guarantee that all complaints are properly investigated,” he added. “We… will continue to work constructively with officials to ensure that the future regulatory landscape facilitates industry growth and enables compliant businesses to thrive.”

• This comes as BIS revealed figures that show 8 out of 10 people would not use the services of a business if they found it paid less than the national minimum wage.