Members of the Recruitment and Employment Confederation (REC) remain uncertain about the forthcoming changes at the Employment Agency Standards (EAS) Inspectorate. 70% of the members are unsure about how the recruitment sector would be affected by the government’s new plans.
During a webinar organised by the REC this month, a majority of recruitment providers agreed that the idea of dividing authority between the Department for Business Innovation and Skills and HMRC was difficult to assess. They commented that it “could prove effective”, but reserved long-term judgement until it becomes clear how the system “works on the ground”.
Furthermore, it appears that the industry wants Umbrella Companies to be included in the remit of any modernised administrative structure, with 79% of the recruitment experts asked indicating that this should happen. 33% of recruiters consider Umbrella Services to be the most significant change to the recruitment landscape over the last decade, with online job postings mentioned by 27% and social media by 20%.
Tom Hadley is the director of policy and professional services at the REC. He says: “Our members are very clear that their two big concerns about the government’s plans for reform are that any enforcement regime must be genuinely effective and that new legislation should reflect the role played by Umbrellas and other intermediaries. This feedback gives us very strong messages to take to ministers as we continue our work to ensure that the future regulatory landscape facilitates industry growth and enables compliant businesses to thrive.”