Government plans to update the regulation of employment businesses and agencies have been welcomed by members of the Building Services Engineering Employment Agency Alliance.
According to the Alliance, the legislation needs to be updated to reflect developments in the manpower supply marketplace.

The Government is considering strengthening the existing self-regulation provisions by asking employment agencies to adhere to a voluntary code of practice, which is still to be determined. However, the Alliance is convinced that self-regulation will only be effective if it is backed by an accredited, sector-relevant standards scheme that will protect workers' rights and those of their client users.

The four outcomes contained in the Government consultation are that: firstly, employment businesses should be restricted from charging fees to work-seekers; secondly, there should be clarity about who is responsible for paying temporary workers; thirdly, the contracts individuals have with recruitment firms should not hinder their movement between jobs, and 'temporary-to-permanent' transfer fees should be reasonable; finally, work-seekers should be able to have confidence in the recruitment sector.

In addition, the Alliance says that the Government is missing the opportunity to promote the principles of prompt and fair payment.

Lord O'Neill of Clackmannan, independent chairman of the Alliance, said: 'The employment sector plays an important role in maintaining the kind of flexible labour market that is critical to economic success.'

He said that the Government's four key outcomes reflect 'a fair and workable regime for the future,' but he insisted that a fifth should be added.

'We believe that Government should focus on ensuring that the needs of individual work-seekers are balanced with those of the employment businesses that find work for them, and that the fifth outcome should therefore be that such organisations are paid promptly.'

Peter Rimmer, B&ES head of employment affairs, said that the flexible labour market will have an increasingly important role to play as the construction industry recovers but that it needs to be 'fit for purpose, balancing the needs and rights of individuals with the ability of businesses to thrive.'

Mr Rimmer added: 'Both B&ES and the Alliance will be following developments carefully to make sure the correct balance is struck as the Government moves towards revising the legislation.'