Recruitment & Employment

Which employment agency regulations apply to your business

Employment agencies and employment businesses — whether you find permanent placements, supply temporary workers, or provide HR services — carry workplace-safety duties as employers and face a separate layer of sector-specific regulation covering conduct standards, agency worker equal treatment and, if you supply workers to agriculture, horticulture, shellfish gathering or associated food processing, gangmasters licensing.

UK-wide
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UK-wide

Related guides in Compliance & Legal

Employment activities are regulated at two levels. As an employer running offices, interviewing candidates and managing assignments, you carry workplace health and safety duties under the Health and Safety at Work etc. Act 1974. The Health and Safety Executive (HSE) regulates in Great Britain and HSENI in Northern Ireland.

On top of that, the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003 impose conduct standards on every agency and employment business — covering recorded terms, the ban on most fees to work-seekers, and detailed rules on how you deal with candidates and hirers. The Agency Workers Regulations 2010 give temporary workers equal treatment after a 12-week qualifying period. And if you supply workers to agriculture, horticulture, shellfish gathering or associated food processing and packaging, you need a gangmasters licence — but general recruitment agencies do not.

What you need to do

  1. 1

    Run a safe employment agency and meet your employer duties

    Whatever type of employment activity you run, start with the universal spine. Follow "Set up and run a safe employment agency" for your health and safety duties around office premises, fire safety, employers' liability insurance, equality and data protection — including the heightened data protection duties that come from processing candidate personal data at scale.

  2. 2

    Meet your employment agency regulatory duties

    If you operate an employment agency or employment business, you must comply with the Employment Agencies Act 1973 and the Conduct Regulations 2003. If you supply temporary workers, the Agency Workers Regulations 2010 apply. And if you supply workers to agriculture, horticulture, shellfish gathering or associated food processing and packaging, you need a gangmasters licence. Follow "Meet your employment agency regulatory duties" for each of these.

  3. 3

    Confirm you have covered everything

    Finish with the employment agency compliance checklist to confirm your obligations are met.

Official sources

Authoritative starting points for employment agencies and employment businesses.