The Conduct of Employment Agencies Regulations




The conduct of employment agencies is regulated by the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (CEAEBR), amended by the Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2016. 




Under the CEAEBR, with minor exceptions (principally performers, models and professional sportspeople), it is unlawful for an agency to charge a worker to find them work. The regulations also limit the right of agencies to charge fees where a temp placed by the agency is offered a permanent job with the employer. 


Under the CEAEBR, it is unlawful for an agency to withhold pay if a worker cannot produce a time sheet, or because the hirer has not yet paid the agency. 




The regulations require the agency, before the assignment, to provide written terms to its workers covering the following:


• confirmation as to whether the agency worker is an employee of the agency;




• pay — amount and method of calculation;




• holiday entitlement; and




• other terms of employment, including notice.




Since 1973, agencies are banned from providing workers to replace staff taking part in official industrial action (Regulation 7, CEAEBR). In its 2015 election manifesto, the Conservative Party committed to repeal this ban and the government has published and consulted on draft regulations to do this — the draft Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2015.
However, there is widespread opposition to lifting the ban, including from the sector’s trade body, the Recruitment & Employment Confederation. The proposal also conflicts with international treaty obligations. In particular, International Labour Organisation (ILO) Recommendation 188 on private employment agencies states that “private employment agencies should not make workers available to a user enterprise to replace workers of that enterprise who are on strike”.
Consultation on lifting the ban has long closed, and for the time being, it remains in place. See also Chapter 6: Industrial action.




The CEAEBR are enforced by the Employment Agency Standards Inspectorate (EASI), overseen by the Director of Labour Market Enforcement.