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Employment Agencies

Question for Department for Business, Energy and Industrial Strategy

UIN 187262, tabled on 26 April 2021

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

Answered on

29 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. The 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.

Named day
Named day questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.