The recruitment industry is heavily regulated and recruiters are bound by law to meet certain standards. Despite this, recruitment agencies are often wrongly aligned with the ‘gig economy’, which is largely unregulated. The Recruitment & Employment Confederation (REC) has distilled the key things you need to know about recruitment industry regulation into this helpful factsheet.

1. THE REC GUIDEwww.rec.uk.com
Is the recruitment industry regulated?
According to these regulations,
recruiters must:
not stop someone from working elsewhere
not make unlawful deductions from pay
not withhold payments or wages due
not charge a fee to anyone seeking a
temporary or permanent job
provide written contracts for their agency
workers, including terms and conditions
The Employment Agencies Act 1973
Conduct of Employment Agencies and
Employment Businesses Regulations 2003
(Conduct Regulations)
not supply an agency worker to replace
someone taking part in industrial action.
Employment (Miscellaneous Provisions)
(Northern Ireland) Order 1981
Conduct of Employment Agencies and
Employment Businesses Regulations
(Northern Ireland) 2005
Recruiters must also follow other
legislation to ensure that agency
workers are:
paid holiday
paid at least the National Minimum Wage
not forced to work longer than 48
hours a week
protected under health and safety laws.
The UK recruitment industry is heavily
regulated. The main statutory rules
governing recruiters are:
THE REC CODE OF
PROFESSIONAL PRACTICE
If a recruitment agency is a member of the
Recruitment & Employment Confederation (REC),
it must adhere to the REC Code of Professional
Practice, which goes beyond the statutory rules.
For example, the code requires members to:
To become a REC member,
agencies must pass a test to
prove they meet these standards,
and they must pass again every
two years to retain membership.
The REC can investigate
potential breaches of the
code when a complaint is
made to us, or when allegations
are made in the public domain.
Investigations can result in
disciplinary sanctions, such as
expulsion from REC membership.
This means that agency workers and employers
have recourse if something goes wrong.
For full details see www.rec.uk.com/code
or to find a REC member in your area visit
www.rec.uk.com/memberdirectory
safeguard against discrimination
comply with all relevant legislation,
statutory and non-statutory guidance.
agree written contracts with
clients for all placements
be honest and transparent with
agency workers and clients

2. This factsheet was produced by the Recruitment & Employment Confederation (REC), the professional body for UK recruitment agencies and businesses. If you
believe a recruitment agency is in breach of the legislation, in the first instance speak to your agency. All our members are required to abide by our Code of
Professional Practice and we investigate complaints received against our members within the scope of the Code. If you are working for an agency that is a
member of the REC and you have a complaint, you can refer it to us at www.rec.uk.com/complaints
The recruitment industry is regulated by the Employment Agencies Standards Inspectorate (EAS) which is part of the Department of Business, Energy and Industrial
Strategy (BEIS). If you believe an agency is non-compliant and wish to report them you can contact EAS in the first instance by telephoning 020 7215 5000 or by
email to eas@beis.gov.uk. You can also contact Acas on 0300 123 1100 (www.acas.org.uk) for advice. You can submit an electronic complaint by completing the
online form on the Gov.uk website (https://www.gov.uk/pay-and-work-rights). Alternatively, you can consider seeking independent legal advice.
IS THE RECRUITMENT INDUSTRY REGULATED?
ARE THERE OTHER ENFORCEMENT BODIES?
Whether a recruitment agency is a member of the REC or not, if they are accused of failing to follow the
statutory rules they can be dealt with by several other enforcement bodies which are overseen by the
Director of Labour Market Enforcement:
Her Majesty's Revenue and
Customs (HMRC)
is a department of the UK
government with responsibilities
including the collection of taxes
and the administration of the
National Minimum Wage and
National Living Wage.
The Gangmasters & Labour
Abuse Authority (GLAA)
investigates labour market offences
in all sectors of the economy.
It continues to license and enforce
activity in the agriculture,
horticultural, forestry and
shellfish industries.
The Employment Agency
Standards Inspectorate (EAS)
enforces the Conduct Regulations.
A breach of the Conduct Regulations
is a criminal offence. On prosecution,
sanctions can include unlimited fines
or banning orders which prevent
individuals from running an agency.
is responsible for co-ordinating the enforcement work of the EAS, the GLAA, and HMRC.
The director’s remit covers both direct employment and labour providers and includes
the whole spectrum of non-compliance, from accidental infringement to serious crime.
The Director of Labour Market Enforcement
IS THE GIG ECONOMY REGULATED?
The ‘gig economy’ refers to online platforms
such as Uber, Deliveroo or Task Rabbit, whereby
businesses contract individuals for short-term
engagements or specific projects.
The status of individuals in the gig economy is
often unclear, and they often lack protections
and access to social security provisions.
In certain sectors like healthcare and
education, the ‘gig economy’ could lead to
increased risks, because it’s unclear who is
responsible for safeguarding checks. In
contrast, recruitment agencies are bound by
law to provide properly vetted agency
workers to hospitals and schools.
say their business would be encouraged
to use digital work platforms if
government clarified the legal status and
responsibilities of digital work platforms
in the UK.This suggests that the
government would do well to regulate
the gig economy in the same way as it
does the UK recruitment industry.
Gig economy -The Uberisation of work (2016)
1 in 5 UK employers
Unlike for recruitment agencies,
there is no comprehensive
framework of legislation
covering the ‘gig economy’.