Recruiters have been urged to be cautious on the issue of indemnities in client-led contracts, according to the Association of Professional Staffing Companies (APSCo).

The Department for Business Innovation & Skills (BIS) published Agency Workers Regulations guidance last week.

APSCo says its members have repeatedly been asked by end users to accept liability for claims brought by agency workers under the AWR. These indemnity clauses mean that in the event that the end user fails to provide the recruiter with sufficient information on temporary workers’ pay and conditions, or withholds information altogether, the recruiter is liable for the breach of the AWR.

Ann Swain, chief executive of APSCo, says: “Would we have liked to see the guidance go further? Yes, we would. There are areas where we feel more clarity would have been useful.

“We are particularly concerned about the already growing issue of clients including indemnities within their contracts, which pass liability for any breach under the AWR to the recruitment firm. This is a disturbing trend, and is clearly not within the spirit of the legislation.  

“The guidance is explicit that liability will be apportioned dependent upon a party’s level of responsibility for a breach, but we would rather it went one step further, and give a clear message to end-user organisations that indemnity clauses, which seek to circumvent their liabilities under the AWR would not be considered appropriate.”