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Umbrellas should come under new recruitment regs, say REC members

August 22, 2013  /   No Comments

Jo Faragher

The majority of recruiters in a poll by the REC believe umbrella companies and other intermediaries should be included in legislation introduced by the Government in the wake of its review of the Conduct Regulations.

Almost four-fifths (79%) of recruiters, polled in an REC webinar last week, said they felt that the new regulatory framework should cover umbrellas and intermediaries. A third felt they were the “single biggest change to the recruitment market over the past decade” – greater than online job boards, new in-house structures, recruitment process outsourcing and even social media.

Asked whether the Government’s plans to re-organise the Employment Agency Standards Inspectorate (EAS) will have a positive or negative impact on the industry, 70% said “the jury’s still out”, although the majority thought splitting the responsibilities for EAS between HMRC and the Department for Business, Innovation and Skills (BIS) “could be effective”.

Tom Hadley, the REC’s director of policy and professional services, said:

“Our members are very clear that their two big concerns about the government’s plans for reform are that any enforcement regime must be genuinely effective and that new legislation should reflect the role played by umbrellas and other intermediaries.”

He added: “This feedback gives us very strong messages to take to ministers as we continue our work to ensure that the future regulatory landscape facilitates industry growth and enables compliant businesses to thrive.”

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