An 'employment business' employs or engages a work-seeker who then works under the supervision of another person. This is known as 'temporary agency work' or 'temping'. The workers under these arrangements are usually paid by the employment business rather than by the hirer (business) they are supplied to.
If your business engages in both activities then it is both an employment agency and an employment business.
The term employment agency is commonly used interchangeably for employment agency and employment business but the correct usage of the terminology is set out as above.
General principles to running an employment agency or an employment business
Work-seekers working through an employment agency or employment business may be employees or workers as defined in employment legislation. If so they will be entitled to employment rights such as to be paid at least the national minimum wage and rights to paid leave and rest breaks.There are protections in place and set out in the employment agency legislation to ensure that work-seekers are treated fairly.
The obligations, in general terms, are that you must make sure that you follow the law when:
- keeping records about the work-seekers and hiring companies
- charging any fees to work-seekers or hirers
- issuing terms and conditions to work-seekers and hiring companies
- advertising jobs and placing workers with hiring companies
- charge a fee to a work-seeker for work finding services (different rules apply if you are running an employment agency or business to find work in the entertainment or modelling sections)
- stop a work-seeker from working elsewhere, from terminating their contract with you, or require them to tell you the identity of any future employer
- (employment businesses only) withhold payments or wages due to work-seekers for work they have carried out
- (employment businesses only) supply a temporary work-seeker to replace an individual taking part in industrial action
Setting up an employment agency or employment business
There is no legal requirement to form a limited company in order to trade as an employment agency or employment business.
There are several different options to choose from when starting a business, such as sole trader, partnership and limited liability company. Your choice will depend on your personal circumstances.
Running the business from home
There is no reason why your business should not be run from your home providing that you comply with the relevant rules and regulations. In some instances working from home can affect your mortgage, your home insurance and council tax, among other things. There are also health and safety issues to be aware of.
Licences for employment agencies
The majority of employment agencies do not need a licence, but there are some areas of work where a licence is or may be required.
Agencies covered by Gangmaster licensing rules
If you are providing labour for one of the following sectors you will need to be licensed by the Gangmaster Licensing Authority (GLA):
- agriculture
- horticulture
- shellfish gathering
- forestry
- food processing and packaging
The GLA regulates the supply of labour into these sectors.
Nursing agencies and domiciliary care agencies
If you are setting up or running a nursing agency or domiciliary care agency, you may need to be registered with the Care Quality Commission (CQC) which regulates care services. This covers nursing agencies if you supply registered nurses to work for other providers or nurses or carers supplied to work directly in people's own homes.
Criminal records checks for agency workers
The Criminal Records Bureau (CRB) is an Executive Agency of the Home Office set up to help organisations make safer recruitment decisions.
As an employment agency or employment business there may be some industries you provide workers for that require criminal record checks. This is likely to include workers with duties involving close contact with children or other vulnerable groups, such as elderly people or those with learning disabilities.
No comments:
Post a Comment