General Background

Recruitment businesses in the UK are either “employment agencies” or “employment businesses”. An employment agency finds staff that will be employed by you. Most permanent recruiters are therefore “employment agencies”. In contrast, an employment business itself employs the staff that it finds – this is the typical contractor / temp agency.

This note is about employment agencies.

What Laws Apply?

The law demands respect for the privacy of the individual jobseeker and that employers and employment agencies obtain and provide certain minimum information to each other.

If you believe that an employment agency is acting in breach of the law, you can complain to the Department of Trade & Industry’s Employment Agency Standards Inspectorate. The Inspectorate carries out routine inspections of agencies and investigates complaints about agency conduct. The Inspectorate operates an enquiry line on +44 (0)845 955 5105 (Monday - Friday 9:30 - 16:30).

What information must I provide? Regulation 18

• the identity of the hirer and the nature of its business
• the date on which the job is to commence
• details of the vacancy you wish to fill: type of work, location, hours of work, any risks to health & safety
• the experience, training, qualifications and necessary authorisations required
• any expenses payable to or by the jobseeker
• the minimum salary and benefits you would offer and when they are paid
• the notice period you require your employees to give when leaving

What can I insist upon?

Sample Policy:

1. We will only accept CVs if the jobseeker is named. (Employment agencies are obliged by Regulation 19 to confirm jobseekers’ identities.)
2. We will only accept CVs if the named jobseeker has confirmed that he/she is willing to work in the vacancy we are seeking to fill. (This is another Regulation 19 requirement.)
3. We will only accept CVs if our identity has been disclosed to the named jobseeker and the named jobseeker has expressly authorised submission of his/her details to us.
4. We require all employment agencies to comment on: (i) any gaps in the jobseeker’s CV, (ii) the jobseeker’s experience, training and qualifications, (iii) any necessary authorisations to work in the vacancy we are seeking to fill, and (iv) the agency’s opinion of the jobseeker’s overall suitability. (The second and third of these are also Regulation 19 requirements.)
5. We require all employment agencies to enquire of, and when disclosed by the jobseeker, to provide details of the jobseeker’s current salary, salary expectations, notice period and motivation to move jobs.

What can I expect if I appoint more than one agency?

I have received a CV out of the blue?

• do not make direct contact with the jobseeker.
• do not ask for further information about the candidate before agreeing terms.
• do not interview or request an interview before agreeing terms.

I have received a CV from more than one place?

Examples: An agency sent you a CV without expressly obtaining permission to do so from the jobseeker. A second agency sends you that CV but this time with the jobseeker’s permission. The second agency is the one entitled to the fee. It’s not about timing, it’s about doing it right!
An agency you had not instructed sent you a CV out of the blue. A second agency which you had instructed then sends you that same CV. If the jobseeker has for some reason given both agencies permission to submit the CV, you will be under no liability to the first agency as long as you took no action as a result of receiving the CV from it.

Finally, to avoid difficulties where you have received a CV some time ago or on an earlier vacancy and received it again from another agency on a current vacancy, you are advised to tell agencies when you first deal with them that you only agree to pay fees based upon introductions from them being the “effective cause” of you hiring the jobseeker.

Can I contact jobseekers directly?

A jobseeker’s privacy is protected by Data Protection legislation. If you make contact with anyone in any way which might reveal that the jobseeker has applied for a new job, you could be jeopardising the jobseeker’s current job and might be liable directly to the jobseeker or to indemnify the agency should the jobseeker lose his or her job as a result of your enquiries.

What if already had the CV on my database / in my files?

You have a vacancy and have instructed a recruitment agency. They send a jobseeker’s CV. You already know that jobseeker or he/she has applied to you in the past. Do you (a) reject the CV and tell the agency that you intend to deal with the jobseeker directly, or (b) accept that without the agency’s introduction you would not have pursued this particular jobseeker? After all, why hadn’t you already done so?

In these circumstances, fairness and the legal position are not all that dissimilar. You will be deemed to have accepted typically-worded employment agency terms and conditions if as a result of receiving the CV from the agency you then took action to pursue that particular jobseeker, whether directly or via the agency. Bear in mind that if the agency has done its job properly it will only have sent the CV to you with the jobseeker’s express permission and will therefore (a) have confirmed that there is no ongoing recruitment dialogue with you and (b) be authorised to represent that person in respect of their application to your company.

The moral of the story is that you should consider your database and contacts before appointing employment agencies or should provide a hands-off list or agree a hands-off policy in advance

Anything else?