

Actions that should be taken before opening an employment agency or employment business.
If you are operating as an employment business you must agree written terms and conditions with work-seekers and hirers before you undertake any work-finding services. For more information see employment businesses - content of terms with work-seekers and employment businesses - content of terms with hiring companies.
If you provide any additional services, such as CV writing, accommodation, transport etc, this should be covered in a separate document and issued to work-seekers before providing these services - see employment agencies - providing additional services and goods.
Additional rules apply to employment agencies and businesses operating in the entertainment or modelling sectors - see entertainment and modelling agencies.
You must not advertise a vacancy unless you have obtained full details of the specific position advertised and the authority of the hirer to find work-seekers for that position or the authority of an agency or employment business which has the authority to issue the advertisement.
Every advertisement must include the full name of the agency or the employment business and confirmation of whether the vacancy is 'temporary' or 'permanent'.
Where the rate of pay is included in the advertisement it must also include the nature of the work, the location, the minimum experience levels and details of any training required.
If you agree with another employment agency or employment business to facilitate the provision of work-finding services to a work-seeker or hirer, you must make enquiries to establish that the other agency/business is suitable to act as such and there must be satisfactory answers to those enquiries.
You must also agree in which capacity each of you will act - ie as an employment agency or an employment business. For details about records of enquiries see employment agencies and employment businesses: record keeping responsibilities.
Factors to consider when a limited company hires work-seekers.
If you supply work-seekers who provide their services through a limited company such work-seekers are covered by these rules (unless they have given notice to opt out - see below). Any references to a work-seeker in this guide also includes a work-seeker that is a limited company and, in most cases, the person who is or would be supplied by the 'work-seeker' (limited company) to carry out the work.
Limited company contractors and those persons they supply can agree not to be covered by the regulations provided they give notice to 'opt-out' of the regulations before they are introduced or supplied to a hirer.
Where an incorporated work-seeker has 'opted out' of the regulations, you must inform the hirer that the worker has 'opted out' and the regulations will therefore not apply.
A work-seeker can withdraw the opt-out notice after they have commenced working with a hirer but the withdrawal of the opt-out notice will only be effective when the work-seeker (or the person supplied to do the work) stops working in that position.
The 'opt-out' provision does not apply to those limited company work-seekers who will be supplied to work with vulnerable people.
Where you operate as an employment business you cannot enter into a contract on behalf of a work-seeker with a hirer or on behalf of a hirer with a work-seeker.
Where you operate as an employment agency you can only enter into a contract with a work-seeker on behalf of a hirer if the hirer has given you authority to do so. You can only enter into a contract with a hirer on behalf of a work-seeker if the work-seeker is seeking employment in the entertainment sector and the work-seeker has given you authority to enter into such contracts.
Whether you act for the work-seeker or hirer you must inform your client of the terms of the contract within five business days of entering into that contract.
When agreeing to the terms of a contract you cannot act on behalf of both the work-seeker and the hirer.
Terms that should be agreed with those looking to seek work.
Before starting to find work for work-seekers you must agree the terms that will apply with the work-seeker. These should include:
Where the work-seeker is a limited company (and not opted out of the regulations) and where annual leave provisions would not apply, you must detail any period of absence that a limited company work-seeker may be entitled to and to be paid for.
If you and the work-seeker agree any changes to the terms, you must, as soon as reasonably practicable after the changes have been agreed, give the work-seeker a new document setting out details of the changes and stating the date that the varied terms take effect.
Terms and conditions that should be agreed with hirer the first time you provide a service to them.
Before providing a service to a hirer you must agree with the hirer the terms and conditions which apply or will apply between you and the hirer.
You should give them a statement that the services provided will be those of an employment business (ie supplying temporary workers).
You should also set out the details of any fees which may be payable to the agency or employment business by the hirer including:
Finally you should set out the procedure to be followed if you supply a work-seeker to a hirer who proves unsatisfactory. For example:
You must ensure that all of the terms between you and the hirer are recorded and that a copy is provided to the hirer as soon as is practical. This will normally take the form of a set of business terms or a letter setting out all the terms agreed.
If you and the hirer agree any changes to the terms, you must, as soon as reasonably practical after the changes have been agreed, give the hirer a new document setting out details of the changes and stating the date that the varied terms take effect.
Information that should be obtained before you place a worker with a hirer.
As an employment agency or business, before placing a work-seeker with a hirer you must obtain sufficient information from the hirer about that position including:
If you operate as an employment business or you operate as an employment agency which is introducing workers where the worker will be working with vulnerable people you must:
For further information see employment agencies and employment businesses: record keeping.
Checks that should be taken by employment agencies or businesses when supplying work-seekers who work with or care for vulnerable people.
As an employment business, if you supply or introduce a work-seeker where professional qualifications are required you should obtain copies of any relevant qualifications and make them available to the hirer.
As an employment agency or employment business if you supply or introduce a work-seeker who is required to work with or care for vulnerable people you must obtain two references on the work-seeker and make them available to the hirer, as well as carrying out checks to make sure the work-seeker is suitable to work in the position.
Where you have tried to obtain copies of the relevant qualification or references but have been unable to do so you must inform the hirer that you have made reasonable attempts to obtain this information and explain what steps you have taken.
Steps the employment agency or employment business must take to ensure both parties are aware of what is required of them.
As an employment agency or employment business you must not introduce or supply a work-seeker to a hirer unless you have taken reasonable steps to ensure that the work-seeker and the hirer are each aware of any requirements imposed by law, or by any professional body, in order for the work-seeker to take up the position.
You must also make enquiries to ensure that it would not be detrimental to the interests of the work-seeker or the hirer for the work-seeker to work for the hirer.
Where you operate as an employment business and you receive information that indicates that a work-seeker may be unsuitable for the position you must:
Where the enquiries indicate that a work-seeker is unsuitable for the position, or information is received that indicates the work-seeker is not suitable, you must, without delay:
Where you operate as an employment agency, and have introduced a work-seeker to a hirer, and you subsequently receive information within a period of three months from the date of introduction, which indicates that the work-seeker is or may be unsuitable for the position with the hirer you must inform the hirer of that information without delay.
Employment agencies or businesses, work-seekers and providing travel or accommodation.
You must not arrange work for a work-seeker (except in situations where they are given a contract of employment by the hirer) if in order to take up that work the work-seeker must live away from home, unless you have taken all reasonable steps to ensure that:
Where the work-seeker is not the employee of the hirer or the work-seeker is under 18 years of age, and free travel or payment is arranged for the work-seeker's journey to work, you must, if the work does not start or when it finishes either:
You must set out these arrangements in writing for the work-seeker.
Where a hirer does not comply with its undertaking to arrange free return travel or pay the return fare, you must bear this cost for the work-seeker.
You must not introduce or supply a work-seeker who is under the age of 18 for a position if they are required to live away from home, unless you have obtained direct written consent from a parent or guardian.
If you issue a loan to a work-seeker to meet their travel or other expenses to take up a position, you cannot require the work-seeker to repay a sum greater than the sum loaned.
Where the work-seeker is an au pair you must not arrange employment for them if they are required to repay either you or the hirer for the fare between the au pair's home and place of work.
You can require that the au pair pays their own fare from their home to the place of employment but neither you nor the hirer can require that the cost of the fare comes out of the au pair's pay.
Rules and legal requirements for employment agencies that provide additional services or goods to jobseekers.
You are allowed to charge jobseekers for additional services eg CV writing or transport to jobs. However you are not allowed to charge individuals seeking work for work-finding services unless you are an employment agency in the entertainment sector - see entertainment and modelling agencies.
If you are providing additional services you or anyone connected with your business cannot make the provision of work-finding services conditional on jobseekers using any of these additional services.
If you provide someone seeking work with more than one service, you must inform them:
Before providing additional services you must give the jobseeker details of:
If there is a change to the fees for the services offered or the goods provided, you should give the jobseeker further notice detailing the changes.
If you offer any gift or make an offer of any benefit to a jobseeker, for example to entice them to use your services, you must make clear the terms and conditions on which the gift or benefit is offered.
The payment guidelines you must follow when operating as an employment agency or employment business.
If you operate as an employment agency and introduce a work-seeker to a hirer for employment by the hirer you cannot be responsible for paying the work-seeker remuneration arising from the work-seeker's employment with the hirer.
Separate rules apply to entertainment and modelling agencies. For further information see entertainment and modelling agencies.
If you are an employment business supplying temporary work-seekers you are responsible for paying the work-seekers. You must pay a temporary work-seeker for all the hours they work.
Even if you have not been paid by the hiring company or the work-seeker has not supplied you with a time sheet authorised or signed by the hirer verifying the hours worked by that work-seeker, you must still pay the work-seeker for the hours they have worked.
Employment agencies and businesses and using transfer fees fairly.
As an employment business you cannot use transfer fees unreasonably as a means of discouraging or deterring hirers from:
You can charge transfer fees to hirers to protect your legitimate business interests, in three situations:
It is unlawful for you to seek to charge a transfer fee (following the supply of a worker) in any other situation. A hirer is entitled to recover any money they have paid for unlawful transfer fees.
You can charge a transfer fee in temp-to-perm and temp-to-temp situations provided the hirer is given the option to have the worker supplied by you for a specified period of hire, at the end of which the worker will transfer without charge instead of paying the transfer fee.
Where the hirer has opted for a specified period of hire, you must supply the worker for the entirety of that period (unless you are prevented from so doing in circumstances that are not your fault). The supply terms cannot be less favourable to the hirer than those which applied prior to the hirer opting for the specified hire period. In order for a transfer fee to be payable, the transfer of the work-seeker must take place within the 'relevant period'.
The 'relevant period' is whichever of the following periods ends later:
Where there has been more than one assignment care must be taken in calculating the correct start date for the 14-week period. If there was a break of more than 42 days (six weeks) between assignments this will break continuity and the later assignment will be taken as the first assignment. Where there has been a break of 42 days or less this will not trigger the start of a new 14-week period.
If you supplied a worker who your client introduced to a third party you can charge a transfer fee following the same principles as a temp-to-perm or temp-to-temp fee - but you do not have to offer the client a choice between the transfer fee and an extended period of hire.
If you introduce a worker rather than supply them you can charge a fee - often called an introduction fee.
The fee should follow the same principles as the temp-to-perm and temp-to-temp fees but there is no limit on the period during which such a transfer must occur. The hirer must be given the option to have the worker supplied by you for a specified period of hire, at the end of which the worker will transfer without charge instead of paying the transfer fee. There is no limit on the agreed specified period of hire or the level of the transfer fee.
Actions that should be taken before opening an employment agency or employment business.
If you are operating as an employment business you must agree written terms and conditions with work-seekers and hirers before you undertake any work-finding services. For more information see employment businesses - content of terms with work-seekers and employment businesses - content of terms with hiring companies.
If you provide any additional services, such as CV writing, accommodation, transport etc, this should be covered in a separate document and issued to work-seekers before providing these services - see employment agencies - providing additional services and goods.
Additional rules apply to employment agencies and businesses operating in the entertainment or modelling sectors - see entertainment and modelling agencies.
You must not advertise a vacancy unless you have obtained full details of the specific position advertised and the authority of the hirer to find work-seekers for that position or the authority of an agency or employment business which has the authority to issue the advertisement.
Every advertisement must include the full name of the agency or the employment business and confirmation of whether the vacancy is 'temporary' or 'permanent'.
Where the rate of pay is included in the advertisement it must also include the nature of the work, the location, the minimum experience levels and details of any training required.
If you agree with another employment agency or employment business to facilitate the provision of work-finding services to a work-seeker or hirer, you must make enquiries to establish that the other agency/business is suitable to act as such and there must be satisfactory answers to those enquiries.
You must also agree in which capacity each of you will act - ie as an employment agency or an employment business. For details about records of enquiries see employment agencies and employment businesses: record keeping responsibilities.
Factors to consider when a limited company hires work-seekers.
If you supply work-seekers who provide their services through a limited company such work-seekers are covered by these rules (unless they have given notice to opt out - see below). Any references to a work-seeker in this guide also includes a work-seeker that is a limited company and, in most cases, the person who is or would be supplied by the 'work-seeker' (limited company) to carry out the work.
Limited company contractors and those persons they supply can agree not to be covered by the regulations provided they give notice to 'opt-out' of the regulations before they are introduced or supplied to a hirer.
Where an incorporated work-seeker has 'opted out' of the regulations, you must inform the hirer that the worker has 'opted out' and the regulations will therefore not apply.
A work-seeker can withdraw the opt-out notice after they have commenced working with a hirer but the withdrawal of the opt-out notice will only be effective when the work-seeker (or the person supplied to do the work) stops working in that position.
The 'opt-out' provision does not apply to those limited company work-seekers who will be supplied to work with vulnerable people.
Where you operate as an employment business you cannot enter into a contract on behalf of a work-seeker with a hirer or on behalf of a hirer with a work-seeker.
Where you operate as an employment agency you can only enter into a contract with a work-seeker on behalf of a hirer if the hirer has given you authority to do so. You can only enter into a contract with a hirer on behalf of a work-seeker if the work-seeker is seeking employment in the entertainment sector and the work-seeker has given you authority to enter into such contracts.
Whether you act for the work-seeker or hirer you must inform your client of the terms of the contract within five business days of entering into that contract.
When agreeing to the terms of a contract you cannot act on behalf of both the work-seeker and the hirer.
Terms that should be agreed with those looking to seek work.
Before starting to find work for work-seekers you must agree the terms that will apply with the work-seeker. These should include:
Where the work-seeker is a limited company (and not opted out of the regulations) and where annual leave provisions would not apply, you must detail any period of absence that a limited company work-seeker may be entitled to and to be paid for.
If you and the work-seeker agree any changes to the terms, you must, as soon as reasonably practicable after the changes have been agreed, give the work-seeker a new document setting out details of the changes and stating the date that the varied terms take effect.
Terms and conditions that should be agreed with hirer the first time you provide a service to them.
Before providing a service to a hirer you must agree with the hirer the terms and conditions which apply or will apply between you and the hirer.
You should give them a statement that the services provided will be those of an employment business (ie supplying temporary workers).
You should also set out the details of any fees which may be payable to the agency or employment business by the hirer including:
Finally you should set out the procedure to be followed if you supply a work-seeker to a hirer who proves unsatisfactory. For example:
You must ensure that all of the terms between you and the hirer are recorded and that a copy is provided to the hirer as soon as is practical. This will normally take the form of a set of business terms or a letter setting out all the terms agreed.
If you and the hirer agree any changes to the terms, you must, as soon as reasonably practical after the changes have been agreed, give the hirer a new document setting out details of the changes and stating the date that the varied terms take effect.
Information that should be obtained before you place a worker with a hirer.
As an employment agency or business, before placing a work-seeker with a hirer you must obtain sufficient information from the hirer about that position including:
If you operate as an employment business or you operate as an employment agency which is introducing workers where the worker will be working with vulnerable people you must:
For further information see employment agencies and employment businesses: record keeping.
Checks that should be taken by employment agencies or businesses when supplying work-seekers who work with or care for vulnerable people.
As an employment business, if you supply or introduce a work-seeker where professional qualifications are required you should obtain copies of any relevant qualifications and make them available to the hirer.
As an employment agency or employment business if you supply or introduce a work-seeker who is required to work with or care for vulnerable people you must obtain two references on the work-seeker and make them available to the hirer, as well as carrying out checks to make sure the work-seeker is suitable to work in the position.
Where you have tried to obtain copies of the relevant qualification or references but have been unable to do so you must inform the hirer that you have made reasonable attempts to obtain this information and explain what steps you have taken.
Steps the employment agency or employment business must take to ensure both parties are aware of what is required of them.
As an employment agency or employment business you must not introduce or supply a work-seeker to a hirer unless you have taken reasonable steps to ensure that the work-seeker and the hirer are each aware of any requirements imposed by law, or by any professional body, in order for the work-seeker to take up the position.
You must also make enquiries to ensure that it would not be detrimental to the interests of the work-seeker or the hirer for the work-seeker to work for the hirer.
Where you operate as an employment business and you receive information that indicates that a work-seeker may be unsuitable for the position you must:
Where the enquiries indicate that a work-seeker is unsuitable for the position, or information is received that indicates the work-seeker is not suitable, you must, without delay:
Where you operate as an employment agency, and have introduced a work-seeker to a hirer, and you subsequently receive information within a period of three months from the date of introduction, which indicates that the work-seeker is or may be unsuitable for the position with the hirer you must inform the hirer of that information without delay.
Employment agencies or businesses, work-seekers and providing travel or accommodation.
You must not arrange work for a work-seeker (except in situations where they are given a contract of employment by the hirer) if in order to take up that work the work-seeker must live away from home, unless you have taken all reasonable steps to ensure that:
Where the work-seeker is not the employee of the hirer or the work-seeker is under 18 years of age, and free travel or payment is arranged for the work-seeker's journey to work, you must, if the work does not start or when it finishes either:
You must set out these arrangements in writing for the work-seeker.
Where a hirer does not comply with its undertaking to arrange free return travel or pay the return fare, you must bear this cost for the work-seeker.
You must not introduce or supply a work-seeker who is under the age of 18 for a position if they are required to live away from home, unless you have obtained direct written consent from a parent or guardian.
If you issue a loan to a work-seeker to meet their travel or other expenses to take up a position, you cannot require the work-seeker to repay a sum greater than the sum loaned.
Where the work-seeker is an au pair you must not arrange employment for them if they are required to repay either you or the hirer for the fare between the au pair's home and place of work.
You can require that the au pair pays their own fare from their home to the place of employment but neither you nor the hirer can require that the cost of the fare comes out of the au pair's pay.
Rules and legal requirements for employment agencies that provide additional services or goods to jobseekers.
You are allowed to charge jobseekers for additional services eg CV writing or transport to jobs. However you are not allowed to charge individuals seeking work for work-finding services unless you are an employment agency in the entertainment sector - see entertainment and modelling agencies.
If you are providing additional services you or anyone connected with your business cannot make the provision of work-finding services conditional on jobseekers using any of these additional services.
If you provide someone seeking work with more than one service, you must inform them:
Before providing additional services you must give the jobseeker details of:
If there is a change to the fees for the services offered or the goods provided, you should give the jobseeker further notice detailing the changes.
If you offer any gift or make an offer of any benefit to a jobseeker, for example to entice them to use your services, you must make clear the terms and conditions on which the gift or benefit is offered.
The payment guidelines you must follow when operating as an employment agency or employment business.
If you operate as an employment agency and introduce a work-seeker to a hirer for employment by the hirer you cannot be responsible for paying the work-seeker remuneration arising from the work-seeker's employment with the hirer.
Separate rules apply to entertainment and modelling agencies. For further information see entertainment and modelling agencies.
If you are an employment business supplying temporary work-seekers you are responsible for paying the work-seekers. You must pay a temporary work-seeker for all the hours they work.
Even if you have not been paid by the hiring company or the work-seeker has not supplied you with a time sheet authorised or signed by the hirer verifying the hours worked by that work-seeker, you must still pay the work-seeker for the hours they have worked.
Employment agencies and businesses and using transfer fees fairly.
As an employment business you cannot use transfer fees unreasonably as a means of discouraging or deterring hirers from:
You can charge transfer fees to hirers to protect your legitimate business interests, in three situations:
It is unlawful for you to seek to charge a transfer fee (following the supply of a worker) in any other situation. A hirer is entitled to recover any money they have paid for unlawful transfer fees.
You can charge a transfer fee in temp-to-perm and temp-to-temp situations provided the hirer is given the option to have the worker supplied by you for a specified period of hire, at the end of which the worker will transfer without charge instead of paying the transfer fee.
Where the hirer has opted for a specified period of hire, you must supply the worker for the entirety of that period (unless you are prevented from so doing in circumstances that are not your fault). The supply terms cannot be less favourable to the hirer than those which applied prior to the hirer opting for the specified hire period. In order for a transfer fee to be payable, the transfer of the work-seeker must take place within the 'relevant period'.
The 'relevant period' is whichever of the following periods ends later:
Where there has been more than one assignment care must be taken in calculating the correct start date for the 14-week period. If there was a break of more than 42 days (six weeks) between assignments this will break continuity and the later assignment will be taken as the first assignment. Where there has been a break of 42 days or less this will not trigger the start of a new 14-week period.
If you supplied a worker who your client introduced to a third party you can charge a transfer fee following the same principles as a temp-to-perm or temp-to-temp fee - but you do not have to offer the client a choice between the transfer fee and an extended period of hire.
If you introduce a worker rather than supply them you can charge a fee - often called an introduction fee.
The fee should follow the same principles as the temp-to-perm and temp-to-temp fees but there is no limit on the period during which such a transfer must occur. The hirer must be given the option to have the worker supplied by you for a specified period of hire, at the end of which the worker will transfer without charge instead of paying the transfer fee. There is no limit on the agreed specified period of hire or the level of the transfer fee.
Actions that should be taken before opening an employment agency or employment business.
If you are operating as an employment business you must agree written terms and conditions with work-seekers and hirers before you undertake any work-finding services. For more information see employment businesses - content of terms with work-seekers and employment businesses - content of terms with hiring companies.
If you provide any additional services, such as CV writing, accommodation, transport etc, this should be covered in a separate document and issued to work-seekers before providing these services - see employment agencies - providing additional services and goods.
Additional rules apply to employment agencies and businesses operating in the entertainment or modelling sectors - see entertainment and modelling agencies.
You must not advertise a vacancy unless you have obtained full details of the specific position advertised and the authority of the hirer to find work-seekers for that position or the authority of an agency or employment business which has the authority to issue the advertisement.
Every advertisement must include the full name of the agency or the employment business and confirmation of whether the vacancy is 'temporary' or 'permanent'.
Where the rate of pay is included in the advertisement it must also include the nature of the work, the location, the minimum experience levels and details of any training required.
If you agree with another employment agency or employment business to facilitate the provision of work-finding services to a work-seeker or hirer, you must make enquiries to establish that the other agency/business is suitable to act as such and there must be satisfactory answers to those enquiries.
You must also agree in which capacity each of you will act - ie as an employment agency or an employment business. For details about records of enquiries see employment agencies and employment businesses: record keeping responsibilities.
Factors to consider when a limited company hires work-seekers.
If you supply work-seekers who provide their services through a limited company such work-seekers are covered by these rules (unless they have given notice to opt out - see below). Any references to a work-seeker in this guide also includes a work-seeker that is a limited company and, in most cases, the person who is or would be supplied by the 'work-seeker' (limited company) to carry out the work.
Limited company contractors and those persons they supply can agree not to be covered by the regulations provided they give notice to 'opt-out' of the regulations before they are introduced or supplied to a hirer.
Where an incorporated work-seeker has 'opted out' of the regulations, you must inform the hirer that the worker has 'opted out' and the regulations will therefore not apply.
A work-seeker can withdraw the opt-out notice after they have commenced working with a hirer but the withdrawal of the opt-out notice will only be effective when the work-seeker (or the person supplied to do the work) stops working in that position.
The 'opt-out' provision does not apply to those limited company work-seekers who will be supplied to work with vulnerable people.
Where you operate as an employment business you cannot enter into a contract on behalf of a work-seeker with a hirer or on behalf of a hirer with a work-seeker.
Where you operate as an employment agency you can only enter into a contract with a work-seeker on behalf of a hirer if the hirer has given you authority to do so. You can only enter into a contract with a hirer on behalf of a work-seeker if the work-seeker is seeking employment in the entertainment sector and the work-seeker has given you authority to enter into such contracts.
Whether you act for the work-seeker or hirer you must inform your client of the terms of the contract within five business days of entering into that contract.
When agreeing to the terms of a contract you cannot act on behalf of both the work-seeker and the hirer.
Terms that should be agreed with those looking to seek work.
Before starting to find work for work-seekers you must agree the terms that will apply with the work-seeker. These should include:
Where the work-seeker is a limited company (and not opted out of the regulations) and where annual leave provisions would not apply, you must detail any period of absence that a limited company work-seeker may be entitled to and to be paid for.
If you and the work-seeker agree any changes to the terms, you must, as soon as reasonably practicable after the changes have been agreed, give the work-seeker a new document setting out details of the changes and stating the date that the varied terms take effect.
Terms and conditions that should be agreed with hirer the first time you provide a service to them.
Before providing a service to a hirer you must agree with the hirer the terms and conditions which apply or will apply between you and the hirer.
You should give them a statement that the services provided will be those of an employment business (ie supplying temporary workers).
You should also set out the details of any fees which may be payable to the agency or employment business by the hirer including:
Finally you should set out the procedure to be followed if you supply a work-seeker to a hirer who proves unsatisfactory. For example:
You must ensure that all of the terms between you and the hirer are recorded and that a copy is provided to the hirer as soon as is practical. This will normally take the form of a set of business terms or a letter setting out all the terms agreed.
If you and the hirer agree any changes to the terms, you must, as soon as reasonably practical after the changes have been agreed, give the hirer a new document setting out details of the changes and stating the date that the varied terms take effect.
Information that should be obtained before you place a worker with a hirer.
As an employment agency or business, before placing a work-seeker with a hirer you must obtain sufficient information from the hirer about that position including:
If you operate as an employment business or you operate as an employment agency which is introducing workers where the worker will be working with vulnerable people you must:
For further information see employment agencies and employment businesses: record keeping.
Checks that should be taken by employment agencies or businesses when supplying work-seekers who work with or care for vulnerable people.
As an employment business, if you supply or introduce a work-seeker where professional qualifications are required you should obtain copies of any relevant qualifications and make them available to the hirer.
As an employment agency or employment business if you supply or introduce a work-seeker who is required to work with or care for vulnerable people you must obtain two references on the work-seeker and make them available to the hirer, as well as carrying out checks to make sure the work-seeker is suitable to work in the position.
Where you have tried to obtain copies of the relevant qualification or references but have been unable to do so you must inform the hirer that you have made reasonable attempts to obtain this information and explain what steps you have taken.
Steps the employment agency or employment business must take to ensure both parties are aware of what is required of them.
As an employment agency or employment business you must not introduce or supply a work-seeker to a hirer unless you have taken reasonable steps to ensure that the work-seeker and the hirer are each aware of any requirements imposed by law, or by any professional body, in order for the work-seeker to take up the position.
You must also make enquiries to ensure that it would not be detrimental to the interests of the work-seeker or the hirer for the work-seeker to work for the hirer.
Where you operate as an employment business and you receive information that indicates that a work-seeker may be unsuitable for the position you must:
Where the enquiries indicate that a work-seeker is unsuitable for the position, or information is received that indicates the work-seeker is not suitable, you must, without delay:
Where you operate as an employment agency, and have introduced a work-seeker to a hirer, and you subsequently receive information within a period of three months from the date of introduction, which indicates that the work-seeker is or may be unsuitable for the position with the hirer you must inform the hirer of that information without delay.
Employment agencies or businesses, work-seekers and providing travel or accommodation.
You must not arrange work for a work-seeker (except in situations where they are given a contract of employment by the hirer) if in order to take up that work the work-seeker must live away from home, unless you have taken all reasonable steps to ensure that:
Where the work-seeker is not the employee of the hirer or the work-seeker is under 18 years of age, and free travel or payment is arranged for the work-seeker's journey to work, you must, if the work does not start or when it finishes either:
You must set out these arrangements in writing for the work-seeker.
Where a hirer does not comply with its undertaking to arrange free return travel or pay the return fare, you must bear this cost for the work-seeker.
You must not introduce or supply a work-seeker who is under the age of 18 for a position if they are required to live away from home, unless you have obtained direct written consent from a parent or guardian.
If you issue a loan to a work-seeker to meet their travel or other expenses to take up a position, you cannot require the work-seeker to repay a sum greater than the sum loaned.
Where the work-seeker is an au pair you must not arrange employment for them if they are required to repay either you or the hirer for the fare between the au pair's home and place of work.
You can require that the au pair pays their own fare from their home to the place of employment but neither you nor the hirer can require that the cost of the fare comes out of the au pair's pay.
Rules and legal requirements for employment agencies that provide additional services or goods to jobseekers.
You are allowed to charge jobseekers for additional services eg CV writing or transport to jobs. However you are not allowed to charge individuals seeking work for work-finding services unless you are an employment agency in the entertainment sector - see entertainment and modelling agencies.
If you are providing additional services you or anyone connected with your business cannot make the provision of work-finding services conditional on jobseekers using any of these additional services.
If you provide someone seeking work with more than one service, you must inform them:
Before providing additional services you must give the jobseeker details of:
If there is a change to the fees for the services offered or the goods provided, you should give the jobseeker further notice detailing the changes.
If you offer any gift or make an offer of any benefit to a jobseeker, for example to entice them to use your services, you must make clear the terms and conditions on which the gift or benefit is offered.
The payment guidelines you must follow when operating as an employment agency or employment business.
If you operate as an employment agency and introduce a work-seeker to a hirer for employment by the hirer you cannot be responsible for paying the work-seeker remuneration arising from the work-seeker's employment with the hirer.
Separate rules apply to entertainment and modelling agencies. For further information see entertainment and modelling agencies.
If you are an employment business supplying temporary work-seekers you are responsible for paying the work-seekers. You must pay a temporary work-seeker for all the hours they work.
Even if you have not been paid by the hiring company or the work-seeker has not supplied you with a time sheet authorised or signed by the hirer verifying the hours worked by that work-seeker, you must still pay the work-seeker for the hours they have worked.
Employment agencies and businesses and using transfer fees fairly.
As an employment business you cannot use transfer fees unreasonably as a means of discouraging or deterring hirers from:
You can charge transfer fees to hirers to protect your legitimate business interests, in three situations:
It is unlawful for you to seek to charge a transfer fee (following the supply of a worker) in any other situation. A hirer is entitled to recover any money they have paid for unlawful transfer fees.
You can charge a transfer fee in temp-to-perm and temp-to-temp situations provided the hirer is given the option to have the worker supplied by you for a specified period of hire, at the end of which the worker will transfer without charge instead of paying the transfer fee.
Where the hirer has opted for a specified period of hire, you must supply the worker for the entirety of that period (unless you are prevented from so doing in circumstances that are not your fault). The supply terms cannot be less favourable to the hirer than those which applied prior to the hirer opting for the specified hire period. In order for a transfer fee to be payable, the transfer of the work-seeker must take place within the 'relevant period'.
The 'relevant period' is whichever of the following periods ends later:
Where there has been more than one assignment care must be taken in calculating the correct start date for the 14-week period. If there was a break of more than 42 days (six weeks) between assignments this will break continuity and the later assignment will be taken as the first assignment. Where there has been a break of 42 days or less this will not trigger the start of a new 14-week period.
If you supplied a worker who your client introduced to a third party you can charge a transfer fee following the same principles as a temp-to-perm or temp-to-temp fee - but you do not have to offer the client a choice between the transfer fee and an extended period of hire.
If you introduce a worker rather than supply them you can charge a fee - often called an introduction fee.
The fee should follow the same principles as the temp-to-perm and temp-to-temp fees but there is no limit on the period during which such a transfer must occur. The hirer must be given the option to have the worker supplied by you for a specified period of hire, at the end of which the worker will transfer without charge instead of paying the transfer fee. There is no limit on the agreed specified period of hire or the level of the transfer fee.
Terms must be agreed with the jobseeker before you help them to find work.
You must issue terms to jobseekers before providing any work-finding services.
The jobseekers terms must include:
Where you provide the jobseeker with a work-finding service that includes inserting information about them in a publication or a website and you intend to charge them a fee for this service, prior to them carrying out any work, the terms must include:
Furthermore, where the terms are issued to a jobseeker seeking employment as an actor, background artist, dancer, extra, musician, singer, or other performer, and you are going to include their information in a publication, the terms must include:
You must ensure that the terms are recorded in a document and issued to the jobseeker before the provision of any service.
If you and the jobseeker agree to any changes to the terms, you must, as soon as possible, after the changes have been agreed, give the worker a new document setting out the details of the changes and stating the date the varied terms take effect.
Subject to certain rules, you can charge fees to certain jobseekers for work-finding services in the acting, entertainment or modelling sectors.
If you run an employment agency you can charge fees to certain jobseekers for work-finding services in the acting, entertainment, or modelling sectors, subject to the rules below.
You can only charge fees or commission out of the jobseeker's earnings from employment you have found for them. Details of the service and fee to be charged must be agreed in writing before it is paid by the hirer or deducted from the worker's earnings.
The only up-front fee you can charge is for including the details of certain types of jobseekers in a publication (including on a website) for the purpose of finding them work.
The publication must be wholly aimed at finding jobseekers employment or providing hirers with information about jobseekers.
These types of workers are:
You can only charge the fee if placing the jobseeker's information in the publication is the only service you are providing eg you are not involved in matching or selecting workers for hirers), or the fee is no more than a reasonable estimate of the cost of production and circulation of the publication attributable to the inclusion of information about that jobseeker in the publication.
In addition, you should make available to the jobseeker a copy of the current edition of the publication in which you are offering to include information about the jobseeker.
When supplying photographic and fashion models, you cannot charge any up-front fees for work-finding services.
If you supply photographic and fashion models, you cannot charge any up-front fees for work-finding services, which includes placing information about them in a publication on a website.
You can still charge a fee to fashion and photographic models for:
Providing additional services to jobseekers in the entertainment or modelling sectors.
In addition to the guide for all employment agencies - providing additional services and goods, where you operate as either an employment agency or an employment business and you provide additional services to jobseekers in the entertainment or modelling sectors, you cannot make a charge for certain services for a period of 30 days from the date of entering into an agreement with the jobseeker.
The services include the production of a photographic image or audio or video recording of the jobseeker.
During the 30-day period the jobseeker shall be entitled without detriment or penalty to cancel or withdraw from any contract for these services with immediate effect and will have no obligation to make any payment for these services.
Cooling-off periods where you cannot charge a fee if you enter into a contract with a work-seeker in several of the entertainment sectors.
Cooling-off periods when charging fees are as follows:
You cannot charge a fee for 30 days from the date you enter into a contract with an actor, background artist, dancer, extra, musician, singer, or other performer for including information about them in a publication or website (including promoting a photographic image or audio or video recording of them). In that 30-day period, they can cancel or withdraw from the contract without penalty and do not have to make any payment under the contract.
If you intend to charge an actor, background artist, dancer, extra, musician, singer, or other performer for including information about them in a publication or website you have to show them the information before it's published and inform them that they have seven days to object.
Note that - rather than waiting until the end of the 30-day period and then waiting for a further seven days for the jobseeker to make any objections - you can agree on the information to be included in the publication during the 30-day period. However, where the objection period has passed and you have addressed any reasonable requirements from the jobseeker, the 30-day period continues to apply in respect of any fees that can be charged under any agreement.
You cannot charge a fee for seven days from the date you enter into a contract with a composer, writer, artist, director, production manager, lighting cameraman, camera operator, make-up artist, clothes, hair, or make-up stylist, film editor, action arranger or co-ordinator, stunt arranger, costume or production designer, recording engineer, property master, film continuity person, sound mixer, photographer, stage manager, producer, choreographer or theatre designer for putting information about them in a publication or website (including promoting a photographic image or audio or video recording of them).
In that seven-day period they:
Jobseekers have the right to a refund if no publication is produced and made available to potential hirers within 60 days of the jobseeker paying the fee.
When an employment agency receives money on behalf of a client the money must be paid into a client account.
Where you operate as an employment agency and you receive money on behalf of a jobseeker (client) the money must be paid into a client account. The account must be in the name of the agency and its title must include the word 'client' and, if the account contains money for a single client, the name of that client.
You must get the jobseeker's consent to make payments out of the client account except where:
In these cases the money can be withdrawn, provided that the amount to be withdrawn does not exceed the total amount held in that account for the client.
Any money that you receive on behalf of a jobseeker and paid into a client account must be paid out to the relevant worker within ten days of you receiving the payment less any agreed or statutory deductions.
Payments can only be held longer than ten days if you have obtained an agreement in writing with the jobseeker. Any agreement must be agreed before the money has been received.
Where you hold on to any money with the agreement of the jobseeker they can request the money to be paid to them from the client account and you must pay this money to them by the end of the second business day from the date of the request.
In addition, where you hold on to money longer than 30 days you must issue a statement to the jobseeker by day 32 and every 30 days thereafter detailing how much money you are holding in the client account for the jobseeker.
As an entertainment or modelling agency you are required to maintain sufficient accounts and records to show transactions relating to client money.
You are required to maintain sufficient accounts and records to show transactions relating to any client money you receive on behalf of jobseekers and any other money paid into the client account.
The accounts should show the current balance of each client's account in the client's ledger. You should ensure that this can be readily obtained. All transactions must be appropriately recorded in a client's cash account or a client's column of a cash account and in a client's ledger or a client's column of a ledger. No other transactions may be recorded in that account, ledger, or columns. All other transactions should be recorded separately.
Agencies must also keep a record, and copies of all invoices and statements in respect of payments made from the client's account. The records must distinguish between fees and expenditures, delivered or made by the agency to its clients.
See employment agencies and employment businesses: record keeping.
Agencies that are required to keep accounts and records must arrange for them to be inspected by an independent and suitably qualified person. This must be done within ten months of the end of the accounting period.
Agencies that are required to maintain client account(s) must keep and display a copy of the reporting accountant's most recent report at each of their premises so that it can be readily seen.
Terms must be agreed with the jobseeker before you help them to find work.
You must issue terms to jobseekers before providing any work-finding services.
The jobseekers terms must include:
Where you provide the jobseeker with a work-finding service that includes inserting information about them in a publication or a website and you intend to charge them a fee for this service, prior to them carrying out any work, the terms must include:
Furthermore, where the terms are issued to a jobseeker seeking employment as an actor, background artist, dancer, extra, musician, singer, or other performer, and you are going to include their information in a publication, the terms must include:
You must ensure that the terms are recorded in a document and issued to the jobseeker before the provision of any service.
If you and the jobseeker agree to any changes to the terms, you must, as soon as possible, after the changes have been agreed, give the worker a new document setting out the details of the changes and stating the date the varied terms take effect.
Subject to certain rules, you can charge fees to certain jobseekers for work-finding services in the acting, entertainment or modelling sectors.
If you run an employment agency you can charge fees to certain jobseekers for work-finding services in the acting, entertainment, or modelling sectors, subject to the rules below.
You can only charge fees or commission out of the jobseeker's earnings from employment you have found for them. Details of the service and fee to be charged must be agreed in writing before it is paid by the hirer or deducted from the worker's earnings.
The only up-front fee you can charge is for including the details of certain types of jobseekers in a publication (including on a website) for the purpose of finding them work.
The publication must be wholly aimed at finding jobseekers employment or providing hirers with information about jobseekers.
These types of workers are:
You can only charge the fee if placing the jobseeker's information in the publication is the only service you are providing eg you are not involved in matching or selecting workers for hirers), or the fee is no more than a reasonable estimate of the cost of production and circulation of the publication attributable to the inclusion of information about that jobseeker in the publication.
In addition, you should make available to the jobseeker a copy of the current edition of the publication in which you are offering to include information about the jobseeker.
When supplying photographic and fashion models, you cannot charge any up-front fees for work-finding services.
If you supply photographic and fashion models, you cannot charge any up-front fees for work-finding services, which includes placing information about them in a publication on a website.
You can still charge a fee to fashion and photographic models for:
Providing additional services to jobseekers in the entertainment or modelling sectors.
In addition to the guide for all employment agencies - providing additional services and goods, where you operate as either an employment agency or an employment business and you provide additional services to jobseekers in the entertainment or modelling sectors, you cannot make a charge for certain services for a period of 30 days from the date of entering into an agreement with the jobseeker.
The services include the production of a photographic image or audio or video recording of the jobseeker.
During the 30-day period the jobseeker shall be entitled without detriment or penalty to cancel or withdraw from any contract for these services with immediate effect and will have no obligation to make any payment for these services.
Cooling-off periods where you cannot charge a fee if you enter into a contract with a work-seeker in several of the entertainment sectors.
Cooling-off periods when charging fees are as follows:
You cannot charge a fee for 30 days from the date you enter into a contract with an actor, background artist, dancer, extra, musician, singer, or other performer for including information about them in a publication or website (including promoting a photographic image or audio or video recording of them). In that 30-day period, they can cancel or withdraw from the contract without penalty and do not have to make any payment under the contract.
If you intend to charge an actor, background artist, dancer, extra, musician, singer, or other performer for including information about them in a publication or website you have to show them the information before it's published and inform them that they have seven days to object.
Note that - rather than waiting until the end of the 30-day period and then waiting for a further seven days for the jobseeker to make any objections - you can agree on the information to be included in the publication during the 30-day period. However, where the objection period has passed and you have addressed any reasonable requirements from the jobseeker, the 30-day period continues to apply in respect of any fees that can be charged under any agreement.
You cannot charge a fee for seven days from the date you enter into a contract with a composer, writer, artist, director, production manager, lighting cameraman, camera operator, make-up artist, clothes, hair, or make-up stylist, film editor, action arranger or co-ordinator, stunt arranger, costume or production designer, recording engineer, property master, film continuity person, sound mixer, photographer, stage manager, producer, choreographer or theatre designer for putting information about them in a publication or website (including promoting a photographic image or audio or video recording of them).
In that seven-day period they:
Jobseekers have the right to a refund if no publication is produced and made available to potential hirers within 60 days of the jobseeker paying the fee.
When an employment agency receives money on behalf of a client the money must be paid into a client account.
Where you operate as an employment agency and you receive money on behalf of a jobseeker (client) the money must be paid into a client account. The account must be in the name of the agency and its title must include the word 'client' and, if the account contains money for a single client, the name of that client.
You must get the jobseeker's consent to make payments out of the client account except where:
In these cases the money can be withdrawn, provided that the amount to be withdrawn does not exceed the total amount held in that account for the client.
Any money that you receive on behalf of a jobseeker and paid into a client account must be paid out to the relevant worker within ten days of you receiving the payment less any agreed or statutory deductions.
Payments can only be held longer than ten days if you have obtained an agreement in writing with the jobseeker. Any agreement must be agreed before the money has been received.
Where you hold on to any money with the agreement of the jobseeker they can request the money to be paid to them from the client account and you must pay this money to them by the end of the second business day from the date of the request.
In addition, where you hold on to money longer than 30 days you must issue a statement to the jobseeker by day 32 and every 30 days thereafter detailing how much money you are holding in the client account for the jobseeker.
As an entertainment or modelling agency you are required to maintain sufficient accounts and records to show transactions relating to client money.
You are required to maintain sufficient accounts and records to show transactions relating to any client money you receive on behalf of jobseekers and any other money paid into the client account.
The accounts should show the current balance of each client's account in the client's ledger. You should ensure that this can be readily obtained. All transactions must be appropriately recorded in a client's cash account or a client's column of a cash account and in a client's ledger or a client's column of a ledger. No other transactions may be recorded in that account, ledger, or columns. All other transactions should be recorded separately.
Agencies must also keep a record, and copies of all invoices and statements in respect of payments made from the client's account. The records must distinguish between fees and expenditures, delivered or made by the agency to its clients.
See employment agencies and employment businesses: record keeping.
Agencies that are required to keep accounts and records must arrange for them to be inspected by an independent and suitably qualified person. This must be done within ten months of the end of the accounting period.
Agencies that are required to maintain client account(s) must keep and display a copy of the reporting accountant's most recent report at each of their premises so that it can be readily seen.
Terms must be agreed with the jobseeker before you help them to find work.
You must issue terms to jobseekers before providing any work-finding services.
The jobseekers terms must include:
Where you provide the jobseeker with a work-finding service that includes inserting information about them in a publication or a website and you intend to charge them a fee for this service, prior to them carrying out any work, the terms must include:
Furthermore, where the terms are issued to a jobseeker seeking employment as an actor, background artist, dancer, extra, musician, singer, or other performer, and you are going to include their information in a publication, the terms must include:
You must ensure that the terms are recorded in a document and issued to the jobseeker before the provision of any service.
If you and the jobseeker agree to any changes to the terms, you must, as soon as possible, after the changes have been agreed, give the worker a new document setting out the details of the changes and stating the date the varied terms take effect.
Subject to certain rules, you can charge fees to certain jobseekers for work-finding services in the acting, entertainment or modelling sectors.
If you run an employment agency you can charge fees to certain jobseekers for work-finding services in the acting, entertainment, or modelling sectors, subject to the rules below.
You can only charge fees or commission out of the jobseeker's earnings from employment you have found for them. Details of the service and fee to be charged must be agreed in writing before it is paid by the hirer or deducted from the worker's earnings.
The only up-front fee you can charge is for including the details of certain types of jobseekers in a publication (including on a website) for the purpose of finding them work.
The publication must be wholly aimed at finding jobseekers employment or providing hirers with information about jobseekers.
These types of workers are:
You can only charge the fee if placing the jobseeker's information in the publication is the only service you are providing eg you are not involved in matching or selecting workers for hirers), or the fee is no more than a reasonable estimate of the cost of production and circulation of the publication attributable to the inclusion of information about that jobseeker in the publication.
In addition, you should make available to the jobseeker a copy of the current edition of the publication in which you are offering to include information about the jobseeker.
When supplying photographic and fashion models, you cannot charge any up-front fees for work-finding services.
If you supply photographic and fashion models, you cannot charge any up-front fees for work-finding services, which includes placing information about them in a publication on a website.
You can still charge a fee to fashion and photographic models for:
Providing additional services to jobseekers in the entertainment or modelling sectors.
In addition to the guide for all employment agencies - providing additional services and goods, where you operate as either an employment agency or an employment business and you provide additional services to jobseekers in the entertainment or modelling sectors, you cannot make a charge for certain services for a period of 30 days from the date of entering into an agreement with the jobseeker.
The services include the production of a photographic image or audio or video recording of the jobseeker.
During the 30-day period the jobseeker shall be entitled without detriment or penalty to cancel or withdraw from any contract for these services with immediate effect and will have no obligation to make any payment for these services.
Cooling-off periods where you cannot charge a fee if you enter into a contract with a work-seeker in several of the entertainment sectors.
Cooling-off periods when charging fees are as follows:
You cannot charge a fee for 30 days from the date you enter into a contract with an actor, background artist, dancer, extra, musician, singer, or other performer for including information about them in a publication or website (including promoting a photographic image or audio or video recording of them). In that 30-day period, they can cancel or withdraw from the contract without penalty and do not have to make any payment under the contract.
If you intend to charge an actor, background artist, dancer, extra, musician, singer, or other performer for including information about them in a publication or website you have to show them the information before it's published and inform them that they have seven days to object.
Note that - rather than waiting until the end of the 30-day period and then waiting for a further seven days for the jobseeker to make any objections - you can agree on the information to be included in the publication during the 30-day period. However, where the objection period has passed and you have addressed any reasonable requirements from the jobseeker, the 30-day period continues to apply in respect of any fees that can be charged under any agreement.
You cannot charge a fee for seven days from the date you enter into a contract with a composer, writer, artist, director, production manager, lighting cameraman, camera operator, make-up artist, clothes, hair, or make-up stylist, film editor, action arranger or co-ordinator, stunt arranger, costume or production designer, recording engineer, property master, film continuity person, sound mixer, photographer, stage manager, producer, choreographer or theatre designer for putting information about them in a publication or website (including promoting a photographic image or audio or video recording of them).
In that seven-day period they:
Jobseekers have the right to a refund if no publication is produced and made available to potential hirers within 60 days of the jobseeker paying the fee.
When an employment agency receives money on behalf of a client the money must be paid into a client account.
Where you operate as an employment agency and you receive money on behalf of a jobseeker (client) the money must be paid into a client account. The account must be in the name of the agency and its title must include the word 'client' and, if the account contains money for a single client, the name of that client.
You must get the jobseeker's consent to make payments out of the client account except where:
In these cases the money can be withdrawn, provided that the amount to be withdrawn does not exceed the total amount held in that account for the client.
Any money that you receive on behalf of a jobseeker and paid into a client account must be paid out to the relevant worker within ten days of you receiving the payment less any agreed or statutory deductions.
Payments can only be held longer than ten days if you have obtained an agreement in writing with the jobseeker. Any agreement must be agreed before the money has been received.
Where you hold on to any money with the agreement of the jobseeker they can request the money to be paid to them from the client account and you must pay this money to them by the end of the second business day from the date of the request.
In addition, where you hold on to money longer than 30 days you must issue a statement to the jobseeker by day 32 and every 30 days thereafter detailing how much money you are holding in the client account for the jobseeker.
As an entertainment or modelling agency you are required to maintain sufficient accounts and records to show transactions relating to client money.
You are required to maintain sufficient accounts and records to show transactions relating to any client money you receive on behalf of jobseekers and any other money paid into the client account.
The accounts should show the current balance of each client's account in the client's ledger. You should ensure that this can be readily obtained. All transactions must be appropriately recorded in a client's cash account or a client's column of a cash account and in a client's ledger or a client's column of a ledger. No other transactions may be recorded in that account, ledger, or columns. All other transactions should be recorded separately.
Agencies must also keep a record, and copies of all invoices and statements in respect of payments made from the client's account. The records must distinguish between fees and expenditures, delivered or made by the agency to its clients.
See employment agencies and employment businesses: record keeping.
Agencies that are required to keep accounts and records must arrange for them to be inspected by an independent and suitably qualified person. This must be done within ten months of the end of the accounting period.
Agencies that are required to maintain client account(s) must keep and display a copy of the reporting accountant's most recent report at each of their premises so that it can be readily seen.
Terms must be agreed with the jobseeker before you help them to find work.
You must issue terms to jobseekers before providing any work-finding services.
The jobseekers terms must include:
Where you provide the jobseeker with a work-finding service that includes inserting information about them in a publication or a website and you intend to charge them a fee for this service, prior to them carrying out any work, the terms must include:
Furthermore, where the terms are issued to a jobseeker seeking employment as an actor, background artist, dancer, extra, musician, singer, or other performer, and you are going to include their information in a publication, the terms must include:
You must ensure that the terms are recorded in a document and issued to the jobseeker before the provision of any service.
If you and the jobseeker agree to any changes to the terms, you must, as soon as possible, after the changes have been agreed, give the worker a new document setting out the details of the changes and stating the date the varied terms take effect.
Subject to certain rules, you can charge fees to certain jobseekers for work-finding services in the acting, entertainment or modelling sectors.
If you run an employment agency you can charge fees to certain jobseekers for work-finding services in the acting, entertainment, or modelling sectors, subject to the rules below.
You can only charge fees or commission out of the jobseeker's earnings from employment you have found for them. Details of the service and fee to be charged must be agreed in writing before it is paid by the hirer or deducted from the worker's earnings.
The only up-front fee you can charge is for including the details of certain types of jobseekers in a publication (including on a website) for the purpose of finding them work.
The publication must be wholly aimed at finding jobseekers employment or providing hirers with information about jobseekers.
These types of workers are:
You can only charge the fee if placing the jobseeker's information in the publication is the only service you are providing eg you are not involved in matching or selecting workers for hirers), or the fee is no more than a reasonable estimate of the cost of production and circulation of the publication attributable to the inclusion of information about that jobseeker in the publication.
In addition, you should make available to the jobseeker a copy of the current edition of the publication in which you are offering to include information about the jobseeker.
When supplying photographic and fashion models, you cannot charge any up-front fees for work-finding services.
If you supply photographic and fashion models, you cannot charge any up-front fees for work-finding services, which includes placing information about them in a publication on a website.
You can still charge a fee to fashion and photographic models for:
Providing additional services to jobseekers in the entertainment or modelling sectors.
In addition to the guide for all employment agencies - providing additional services and goods, where you operate as either an employment agency or an employment business and you provide additional services to jobseekers in the entertainment or modelling sectors, you cannot make a charge for certain services for a period of 30 days from the date of entering into an agreement with the jobseeker.
The services include the production of a photographic image or audio or video recording of the jobseeker.
During the 30-day period the jobseeker shall be entitled without detriment or penalty to cancel or withdraw from any contract for these services with immediate effect and will have no obligation to make any payment for these services.
Cooling-off periods where you cannot charge a fee if you enter into a contract with a work-seeker in several of the entertainment sectors.
Cooling-off periods when charging fees are as follows:
You cannot charge a fee for 30 days from the date you enter into a contract with an actor, background artist, dancer, extra, musician, singer, or other performer for including information about them in a publication or website (including promoting a photographic image or audio or video recording of them). In that 30-day period, they can cancel or withdraw from the contract without penalty and do not have to make any payment under the contract.
If you intend to charge an actor, background artist, dancer, extra, musician, singer, or other performer for including information about them in a publication or website you have to show them the information before it's published and inform them that they have seven days to object.
Note that - rather than waiting until the end of the 30-day period and then waiting for a further seven days for the jobseeker to make any objections - you can agree on the information to be included in the publication during the 30-day period. However, where the objection period has passed and you have addressed any reasonable requirements from the jobseeker, the 30-day period continues to apply in respect of any fees that can be charged under any agreement.
You cannot charge a fee for seven days from the date you enter into a contract with a composer, writer, artist, director, production manager, lighting cameraman, camera operator, make-up artist, clothes, hair, or make-up stylist, film editor, action arranger or co-ordinator, stunt arranger, costume or production designer, recording engineer, property master, film continuity person, sound mixer, photographer, stage manager, producer, choreographer or theatre designer for putting information about them in a publication or website (including promoting a photographic image or audio or video recording of them).
In that seven-day period they:
Jobseekers have the right to a refund if no publication is produced and made available to potential hirers within 60 days of the jobseeker paying the fee.
When an employment agency receives money on behalf of a client the money must be paid into a client account.
Where you operate as an employment agency and you receive money on behalf of a jobseeker (client) the money must be paid into a client account. The account must be in the name of the agency and its title must include the word 'client' and, if the account contains money for a single client, the name of that client.
You must get the jobseeker's consent to make payments out of the client account except where:
In these cases the money can be withdrawn, provided that the amount to be withdrawn does not exceed the total amount held in that account for the client.
Any money that you receive on behalf of a jobseeker and paid into a client account must be paid out to the relevant worker within ten days of you receiving the payment less any agreed or statutory deductions.
Payments can only be held longer than ten days if you have obtained an agreement in writing with the jobseeker. Any agreement must be agreed before the money has been received.
Where you hold on to any money with the agreement of the jobseeker they can request the money to be paid to them from the client account and you must pay this money to them by the end of the second business day from the date of the request.
In addition, where you hold on to money longer than 30 days you must issue a statement to the jobseeker by day 32 and every 30 days thereafter detailing how much money you are holding in the client account for the jobseeker.
As an entertainment or modelling agency you are required to maintain sufficient accounts and records to show transactions relating to client money.
You are required to maintain sufficient accounts and records to show transactions relating to any client money you receive on behalf of jobseekers and any other money paid into the client account.
The accounts should show the current balance of each client's account in the client's ledger. You should ensure that this can be readily obtained. All transactions must be appropriately recorded in a client's cash account or a client's column of a cash account and in a client's ledger or a client's column of a ledger. No other transactions may be recorded in that account, ledger, or columns. All other transactions should be recorded separately.
Agencies must also keep a record, and copies of all invoices and statements in respect of payments made from the client's account. The records must distinguish between fees and expenditures, delivered or made by the agency to its clients.
See employment agencies and employment businesses: record keeping.
Agencies that are required to keep accounts and records must arrange for them to be inspected by an independent and suitably qualified person. This must be done within ten months of the end of the accounting period.
Agencies that are required to maintain client account(s) must keep and display a copy of the reporting accountant's most recent report at each of their premises so that it can be readily seen.
Definitions of what an employment agency and employment business are and organisations that are exempt under the legislation.
An employment agency finds work for work-seekers who are then employed and paid by employers. This is often referred to as 'permanent employment' as once the worker has been recruited they become an employee of the business they are working for.
An employment business employs or engages a work-seeker who then works under the supervision of another person. This is known as 'temporary agency work' or 'temping'. The workers under these arrangements are usually paid by the employment business rather than by the hirer (company) they are supplied to.
If your business engages in both activities then it is both an employment agency and an employment business.
The term employment agency is commonly used interchangeably for employment agency and employment business but the correct usage of the terminology is set out as above.
The legislation does not apply to a number of specific organisations and services, including:
If you publish a newspaper or other publication wholly or mainly for the purpose of providing work-finding services then it is likely that you would be acting as an employment agency or business. However, if job advertisements only account for a small proportion of a wider publication then it is unlikely that this would apply to you.
Principles on running an employment agency or employment business in regards to people seeking work.
Work-seekers working through an employment agency or employment business may be employees or workers as defined in employment legislation.
If so they will be entitled to employment rights such as to be paid at least the national minimum wage and rights to rest breaks and paid leave. Read more on employment status.
There are protections in place and set out in the employment agency legislation to ensure that work-seekers are treated fairly.
The obligations, in general terms, are that you must make sure that you follow the law when:
As an employment agency or employment business you cannot:
Information on rules for setting up an employment agency or employment business.
There is no legal requirement to form a limited company in order to trade as an employment agency or employment business.
There are several different options to choose from when starting a business, such as sole trader, partnership, and limited liability company. Your choice will depend on your personal circumstances.
There is no reason why your business should not be run from your home providing that you comply with the relevant rules and regulations. In some instances working from home can affect your mortgage, your home insurance, and rates, among other things. There are also health and safety issues to be aware of.
Read more on how to use your home as a workplace.
Not all UK agencies can operate in other countries - it depends on the law of the country concerned. Check with the appropriate country's embassy. Search for a foreign embassy in the UK.
The Recruitment and Employment Confederation (REC) is the main trade body for the recruitment industry. Members of REC can access its business start-up services when setting up. This gives access to resources such as training and mentor support.
Agencies that require licensing which are covered by the gangmaster licensing rules and those that provide nursing and domiciliary care.
The majority of employment agencies do not need a licence, but there are some areas of work where a licence is or may be required.
If you supply labour or use workers to provide services in one of the following sectors you may need to be licensed by the Gangmasters & Labour Abuse Authority (GLAA):
The GLAA regulates the supply of labour into these sectors.
You can apply for, or renew a licence, by telephone or online. Find out about the application process.
If you are setting up or running a nursing agency or domiciliary care agency, you may need to be registered with the Regulation and Quality Improvement Authority (RQIA) which regulates a range of health and social care services. This covers nursing agencies if you supply registered nurses to work for other providers or nurses or carers supplied to work directly in people's own homes.
Find out about regulated care agencies.
To find out more about how to register, you should call the RQIA Registration Team on Tel 028 9051 7500.
Information for employment agencies and businesses on making criminal records checks on agency workers.
AccessNI is a Criminal History Disclosure Service within the Northern Ireland Department of Justice, set up to help organisations make safer recruitment decisions.
As an employment agency or employment business there may be some industries you provide workers for that require criminal record checks. This is likely to include workers with duties involving close contact with children or other vulnerable groups, such as elderly people or those with learning disabilities.
Organisations that apply for a check must comply with AccessNI's code of practice. For more information, see AccessNI criminal records checks.
Terms must be agreed with the jobseeker before you help them to find work.
You must issue terms to jobseekers before providing any work-finding services.
The jobseekers terms must include:
Where you provide the jobseeker with a work-finding service that includes inserting information about them in a publication or a website and you intend to charge them a fee for this service, prior to them carrying out any work, the terms must include:
Furthermore, where the terms are issued to a jobseeker seeking employment as an actor, background artist, dancer, extra, musician, singer, or other performer, and you are going to include their information in a publication, the terms must include:
You must ensure that the terms are recorded in a document and issued to the jobseeker before the provision of any service.
If you and the jobseeker agree to any changes to the terms, you must, as soon as possible, after the changes have been agreed, give the worker a new document setting out the details of the changes and stating the date the varied terms take effect.
Subject to certain rules, you can charge fees to certain jobseekers for work-finding services in the acting, entertainment or modelling sectors.
If you run an employment agency you can charge fees to certain jobseekers for work-finding services in the acting, entertainment, or modelling sectors, subject to the rules below.
You can only charge fees or commission out of the jobseeker's earnings from employment you have found for them. Details of the service and fee to be charged must be agreed in writing before it is paid by the hirer or deducted from the worker's earnings.
The only up-front fee you can charge is for including the details of certain types of jobseekers in a publication (including on a website) for the purpose of finding them work.
The publication must be wholly aimed at finding jobseekers employment or providing hirers with information about jobseekers.
These types of workers are:
You can only charge the fee if placing the jobseeker's information in the publication is the only service you are providing eg you are not involved in matching or selecting workers for hirers), or the fee is no more than a reasonable estimate of the cost of production and circulation of the publication attributable to the inclusion of information about that jobseeker in the publication.
In addition, you should make available to the jobseeker a copy of the current edition of the publication in which you are offering to include information about the jobseeker.
When supplying photographic and fashion models, you cannot charge any up-front fees for work-finding services.
If you supply photographic and fashion models, you cannot charge any up-front fees for work-finding services, which includes placing information about them in a publication on a website.
You can still charge a fee to fashion and photographic models for:
Providing additional services to jobseekers in the entertainment or modelling sectors.
In addition to the guide for all employment agencies - providing additional services and goods, where you operate as either an employment agency or an employment business and you provide additional services to jobseekers in the entertainment or modelling sectors, you cannot make a charge for certain services for a period of 30 days from the date of entering into an agreement with the jobseeker.
The services include the production of a photographic image or audio or video recording of the jobseeker.
During the 30-day period the jobseeker shall be entitled without detriment or penalty to cancel or withdraw from any contract for these services with immediate effect and will have no obligation to make any payment for these services.
Cooling-off periods where you cannot charge a fee if you enter into a contract with a work-seeker in several of the entertainment sectors.
Cooling-off periods when charging fees are as follows:
You cannot charge a fee for 30 days from the date you enter into a contract with an actor, background artist, dancer, extra, musician, singer, or other performer for including information about them in a publication or website (including promoting a photographic image or audio or video recording of them). In that 30-day period, they can cancel or withdraw from the contract without penalty and do not have to make any payment under the contract.
If you intend to charge an actor, background artist, dancer, extra, musician, singer, or other performer for including information about them in a publication or website you have to show them the information before it's published and inform them that they have seven days to object.
Note that - rather than waiting until the end of the 30-day period and then waiting for a further seven days for the jobseeker to make any objections - you can agree on the information to be included in the publication during the 30-day period. However, where the objection period has passed and you have addressed any reasonable requirements from the jobseeker, the 30-day period continues to apply in respect of any fees that can be charged under any agreement.
You cannot charge a fee for seven days from the date you enter into a contract with a composer, writer, artist, director, production manager, lighting cameraman, camera operator, make-up artist, clothes, hair, or make-up stylist, film editor, action arranger or co-ordinator, stunt arranger, costume or production designer, recording engineer, property master, film continuity person, sound mixer, photographer, stage manager, producer, choreographer or theatre designer for putting information about them in a publication or website (including promoting a photographic image or audio or video recording of them).
In that seven-day period they:
Jobseekers have the right to a refund if no publication is produced and made available to potential hirers within 60 days of the jobseeker paying the fee.
When an employment agency receives money on behalf of a client the money must be paid into a client account.
Where you operate as an employment agency and you receive money on behalf of a jobseeker (client) the money must be paid into a client account. The account must be in the name of the agency and its title must include the word 'client' and, if the account contains money for a single client, the name of that client.
You must get the jobseeker's consent to make payments out of the client account except where:
In these cases the money can be withdrawn, provided that the amount to be withdrawn does not exceed the total amount held in that account for the client.
Any money that you receive on behalf of a jobseeker and paid into a client account must be paid out to the relevant worker within ten days of you receiving the payment less any agreed or statutory deductions.
Payments can only be held longer than ten days if you have obtained an agreement in writing with the jobseeker. Any agreement must be agreed before the money has been received.
Where you hold on to any money with the agreement of the jobseeker they can request the money to be paid to them from the client account and you must pay this money to them by the end of the second business day from the date of the request.
In addition, where you hold on to money longer than 30 days you must issue a statement to the jobseeker by day 32 and every 30 days thereafter detailing how much money you are holding in the client account for the jobseeker.
As an entertainment or modelling agency you are required to maintain sufficient accounts and records to show transactions relating to client money.
You are required to maintain sufficient accounts and records to show transactions relating to any client money you receive on behalf of jobseekers and any other money paid into the client account.
The accounts should show the current balance of each client's account in the client's ledger. You should ensure that this can be readily obtained. All transactions must be appropriately recorded in a client's cash account or a client's column of a cash account and in a client's ledger or a client's column of a ledger. No other transactions may be recorded in that account, ledger, or columns. All other transactions should be recorded separately.
Agencies must also keep a record, and copies of all invoices and statements in respect of payments made from the client's account. The records must distinguish between fees and expenditures, delivered or made by the agency to its clients.
See employment agencies and employment businesses: record keeping.
Agencies that are required to keep accounts and records must arrange for them to be inspected by an independent and suitably qualified person. This must be done within ten months of the end of the accounting period.
Agencies that are required to maintain client account(s) must keep and display a copy of the reporting accountant's most recent report at each of their premises so that it can be readily seen.