Resources
December 21, 2022

Conduct Regulations for Recruitment Agencies in 2023

Conduct Regulations for Recruitment Agencies in 2023

Sleek v2.0 public release is here

Lorem ipsum dolor sit amet, consectetur adipiscing elit lobortis arcu enim urna adipiscing praesent velit viverra sit semper lorem eu cursus vel hendrerit elementum morbi curabitur etiam nibh justo, lorem aliquet donec sed sit mi at ante massa mattis.

  1. Neque sodales ut etiam sit amet nisl purus non tellus orci ac auctor
  2. Adipiscing elit ut aliquam purus sit amet viverra suspendisse potent i
  3. Mauris commodo quis imperdiet massa tincidunt nunc pulvinar
  4. Adipiscing elit ut aliquam purus sit amet viverra suspendisse potenti

What has changed in our latest release?

Lorem ipsum dolor sit amet, consectetur adipiscing elit ut aliquam, purus sit amet luctus venenatis, lectus magna fringilla urna, porttitor rhoncus dolor purus non enim praesent elementum facilisis leo, vel fringilla est ullamcorper eget nulla facilisi etiam dignissim diam quis enim lobortis scelerisque fermentum dui faucibus in ornare quam viverra orci sagittis eu volutpat odio facilisis mauris sit amet massa vitae tortor condimentum lacinia quis vel eros donec ac odio tempor orci dapibus ultrices in iaculis nunc sed augue lacus

All new features available for all public channel users

At risus viverra adipiscing at in tellus integer feugiat nisl pretium fusce id velit ut tortor sagittis orci a scelerisque purus semper eget at lectus urna duis convallis. porta nibh venenatis cras sed felis eget neque laoreet libero id faucibus nisl donec pretium vulputate sapien nec sagittis aliquam nunc lobortis mattis aliquam faucibus purus in.

  • Neque sodales ut etiam sit amet nisl purus non tellus orci ac auctor
  • Adipiscing elit ut aliquam purus sit amet viverra suspendisse potenti
  • Mauris commodo quis imperdiet massa tincidunt nunc pulvinar
  • Adipiscing elit ut aliquam purus sit amet viverra suspendisse potenti
Coding collaboration with over 200 users at once

Nisi quis eleifend quam adipiscing vitae aliquet bibendum enim facilisis gravida neque. Velit euismod in pellentesque massa placerat volutpat lacus laoreet non curabitur gravida odio aenean sed adipiscing diam donec adipiscing tristique risus. amet est placerat in egestas erat imperdiet sed euismod nisi.

“Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum”
Real-time code save every 0.1 seconds

Eget lorem dolor sed viverra ipsum nunc aliquet bibendum felis donec et odio pellentesque diam volutpat commodo sed egestas aliquam sem fringilla ut morbi tincidunt augue interdum velit euismod eu tincidunt tortor aliquam nulla facilisi aenean sed adipiscing diam donec adipiscing ut lectus arcu bibendum at varius vel pharetra nibh venenatis cras sed felis eget dolor cosnectur drolo.

The Conduct of Employment Agencies and Employment Businesses 2003, commonly known as the "Conduct Regulations," serve as the governing regulations for the recruitment industry in the United Kingdom.

These regulations are meticulously crafted to offer safeguards to temporary workers, encompassing not only individual human workers but also corporate entities such as personal service companies (PSCs) and individuals employed by umbrella companies.

The primary objective of the Conduct Regulations is to protect workers by imposing specific obligations and limitations on Employment Businesses, often referred to as recruitment agencies.

Notably, PSCs and workers employed through umbrella companies have the option to "opt out" of the Conduct Regulations, provided they choose to do so. However, it's essential to note that if a worker's assignment involves working with vulnerable individuals, they are ineligible to opt out of these regulations.

Safeguards for Workers Under the Conduct Regulations

The Conduct Regulations encompass several prohibitions for Employment Businesses, including:

  1. Charging fees to work-seekers in exchange for finding them employment.
  2. Attempting to restrict a worker from seeking employment elsewhere, including with the end client.
  3. Subjecting a worker to any form of disadvantage or harm if they opt to pursue employment with another entity.
  4. Withholding payments or wages owed to temporary workers based on factors such as the Employment Business not receiving payment from the end client or a lack of a signed timesheet from the end client.

Advantages and Disadvantages of Opting Out of the Conduct Regulations

If a worker chooses to opt out of the Conduct Regulations, their Employment Business gains the authority to withhold the worker's wages until payment is received from the end client or make payment contingent on the worker presenting a signed timesheet.

Moreover, the Conduct Regulations limit an Employment Business's ability to hinder a worker from securing direct employment with the end client. However, if a worker opts out of these regulations, this restriction no longer applies, potentially allowing the Employment Business to prevent the worker from being directly employed by the end client for a specified duration after their assignment concludes.

Some contractors, particularly those operating through their own PSCs, may believe that they do not require the protections afforded by the Conduct Regulations. This choice to remain within or opt out of the Conduct Regulations could also factor into considerations related to IR35.

It's crucial to emphasize that a worker cannot selectively opt out of specific sections of the Conduct Regulations; it's an all-or-nothing decision.

Opting Out Procedure

By default, the Conduct Regulations apply to all work-seekers. However, individuals working through a Limited Company or an Umbrella company can choose to opt out of these regulations, provided their work does not involve vulnerable individuals—those under eighteen or individuals requiring care or attention due to age, infirmity, illness, disability, or other circumstances.

To opt out, both the work-seeker and their Limited Company/Umbrella company must jointly agree before the assignment commences. Opting out becomes ineffective if only one party opts out or if the worker opts out after the assignment has begun. The Limited Company/Umbrella company must inform the Employment Business of the opt-out, and the Employment Business, in turn, must notify the end client.

Workers retain the freedom to change their Conduct Regulations status by opting in or out at a later date, provided they give notice to their PSC/Umbrella company, which, in turn, must notify the Employment Business. However, this change can only occur once their current assignment has concluded; it's not possible to modify Conduct Regulations status mid-assignment.

Ultimately, the decision to opt out of the Conduct Regulations rests with the worker. Employment Businesses are prohibited from making their services conditional upon a worker's decision to opt out of these regulations.

About the author

Lyndsey operates a small team of both internal and external compliance experts to ensure our local regulation knowledge is top of the game.

Subscribe to our newsletter

Thanks for subscribing to our newsletter
Oops! Something went wrong while submitting the form.
Subscribe To Our Newsletter - Sleek X Webflow Template