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Employment law guide

Employment Agencies

A business can be an employment agency or an employment business or both.

An employment agency or recruitment consultancy introduces work-seekers to employers and they become an employee of the company to whom they were introduced.

An employment business arranges temporary work and the temporary worker is paid by the agency rather than by the company to which they are supplied.

The conduct of the private recruitment industry is governed by The Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003, which set minimum standards for employment agencies and employment businesses operating in Great Britain.

The Agency Workers Regulations 2010 implemented the EU Temporary Workers Directive, and they mean that the agency worker must enjoy the same terms and conditions they would have if employed directly by the hirer and both the agency and the hirer have liability to the worker for breaches of the Regulations.