Legal Guidance

The Conduct of Employment Agencies and Employment Businesses Regulations 2003, often referred to as the “Conduct Regulations”, are UK regulations which govern the conduct of the recruitment industry. We have created guidance for on opting out of the Conduct Regulations which includes information on:

• The scope of the Conduct Regulations;
• Who can opt out of the Conduct Regulations;
• How you can ensure you have gained a valid opt-out;
• Influencing work-seekers to opt out of the Conduct Regulations;
• Benefits/risks associated with opting out;
• Opting back in to the Conduct Regulations; and
• Exclusions to opting out of the Conduct Regulations.

From 30th September 2017, there is a criminal risk for recruitment companies utilising non-compliant umbrella and management companies and those with lax policies for overseas contractors. The Act will make companies criminally liable if they fail to prevent tax evasion by either a member of their staff or an external agent, even where the business was not involved in the act or was unaware of it.

The Protecting Vulnerable Groups (PVG) Membership Scheme was introduced by the Scottish Government in February 2011 under Part 2 of the Protection of Vulnerable Groups (Scotland) Act 2007. The scheme ensures that individuals with a known history of harm are prevented from gaining access to children and/or protected adults through their work.

NOTE: It is only mandatory for those carrying out ‘regulated roles’ with children and adults in Scotland to apply for the scheme.

The Apprenticeship Levy came into effect on 6 April 2017. The levy will affect all employers in England with an annual pay bill of more than £3 million and will be charged at the rate of 0.5%. If an employer is eligible to pay the levy they must pay and report to HMRC through the PAYE process on a monthly basis. Please read our guidance to get a better understanding of the levy and how it will affect recruitment companies.

From 1 March 2021, the Domestic Reverse Charge ("DRC") for VAT on construction services will be introduced. This document includes detailed guidance for members on what the changes are and how to prepare.

This document provides step by step guidance on populating a Key Information Document (KID). It also includes example KIDs for PAYE, Umbrella and PSC engagements along with compulsory and best practice requirements. 

This guidance on Statutory Sick Pay (SSP) includes detailed sections on different types of workers and the considerations that need to be made as an employer with regards to SSP.

From 06 April 2020, numerous Good Work Plan and Employment Law changes will need to be implemented. This guidance is intended to provide information on the upcoming changes and recommendations for any actions you should be considering.

This toolkit is designed to assist our members through a staged approach to debt recovery and to provide the tools required to speed up the payment & recovery process. This toolkit is a great starting point for debt recovery in recruitment.

The latest guidance on IR35 in the private sector, including how to carry out a supply chain review.

From 6th April 2017, the decision to determine IR35/employment status on an assignment basis will move from the contractor’s PSC to the public authority, recruitment firm or third party paying the PSC (the fee payer). A public sector client for the purpose of the changes means those listed as a public authority under the Freedom of Information Act 2000 (2002 Scotland Act). The public sector client must provide information to a recruitment firm as to whether the employment status test is met, namely whether an assignment is in scope of the rules or not. Where the rules apply (and the placement is to be treated as inside IR35) then the person paying the fee to the PSC for the worker’s services (the fee payer) is treated as an employer for tax, NICs, Apprenticeship Levy and employment allowance purposes.

Many contractors work through an umbrella company to minimise their financial and tax administration. Likewise, working with compliant umbrella companies eases the compliance burden on recruiters. However, recruiters and umbrella workers need to be aware of non-compliant engagement models being marketed and to reiterate the importance of completing basic due diligence on new providers. This 10 Step guidance piece gives an overview of the main compliance issues and risks our members need to be aware of.  

The Conduct of Employment Agencies and Employment Business Regulations 2003 limit the ability of Employment business when charging a Transfer fee. The way the Transfer Fee will be chargeable will mainly depend on the opt-out or non out-opt of the candidate.

The following guidance covers whether a transfer fee can be chargeable and when for each of the two options.