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Employment Agencies

Question for Department for Business, Energy and Industrial Strategy

UIN 185882, tabled on 22 April 2021

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will bring forward legislative proposals to ban the practice of recruitment agencies asking for incentives to recommend contractors to an umbrella company.

Answered on

28 April 2021

Commercial and loyalty incentive schemes may be a legitimate business-to-business interaction, between the employment agency and an umbrella company. They are therefore outside the scope of the agency regulations enforced by the Employment Agency Standards (EAS) Inspectorate, which regulate the relationship between the agency and work-seeker.

The Government will continue to work with the recruitment sector to seek compliance with existing regulations. Government will also continue to ensure current regulations remain fit for purpose, drawing on the expertise of trade bodies and businesses in the sector. Proposed regulatory changes would be announced in the usual way.