As a heavily regulated industry, recruitment businesses are bound by law to meet certain standards as well as various codes of practice in both their business operations and also candidate and client contracts. Contractual arrangements in this industry are often complex, particularly where there are a number of parties involved, each with their own contracts and legal obligations to consider.
How does a recruitment businesses ensure that its contracts remain compliant with laws whilst also balancing the interests of its clients and candidates and continuing to win new business?
This is no easy task, but having an understanding of the laws and regulations that apply to your business will help you to know which parts of your terms you can negotiate and which ones are crucial to protect your business from risks.

How can I manage my contracts to ensure that they are compliant?

In the coming weeks we will be sharing some key points from laws and regulations that apply to recruitment businesses which will help you to evaluate whether or not your contracts are compliant.


In our FOUR part series we will be covering:

• The Conduct of Employment Agencies and Employment Businesses Regulations 2003 (or more commonly referred to as the “Conduct Regulations 2003”), including all of its amendments (2007, 2010, 2014, 2016 and 2019).
-The implications of contractors “Opting in” vs “Opting out”
-Summary of key regulations, including prescribed contract clauses for agency workers.
• The Agency Workers Regulations (2010), including the proposed amendments regarding the revocation of the “Swedish derogation” principle – expected to take effect April 2020.
-When does AWR 2010 apply?
-Summary of key regulations and compliance requirements placed on recruitment companies.
• Managed Service Company (MSC) legislation (2007)
-How can a recruitment business be held responsible for tax liability of contractors who use an MSC to receive payments? (“Debt transfer rules”)
-What is an MSC and how do I know if my contractor is using one?
-What is the difference between an MSC and an “umbrella company”?
• IR35 legislation (current and proposed reforms).
-Off-payroll working rules from April 2020


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