Hays, one of the most notable staffing firms yet to have signed up to the Association of Professional Staffing Companies’ (APSCo’s) code of conduct for RPOs and managed service providers, is in discussions with APSCo to resolve its concerns about the code.

Hays, which has an RPO division, along with temporary labour procurer de Poel, are among firms yet to sign up to the code, which was launched in May to address long-standing problems with the recruitment supply chain.

Chief among these were ‘pay when paid’ clauses inserted in contracts between MSPs/RPOs and the agency. These clauses allow intermediaries to avoid paying the agency until they themselves have been paid by the end user. 

The code is not legally binding but represents a statement of intent. To get around the issue of ‘pay when paid’, the code includes either a backstop date by which the agency must be paid, or allow the agency direct recourse to the end user for payment.

In a statement, Hays tells Recruiter: “We support APSCo’s initiative to assist smaller firms but have had concerns regarding some provisions in the code and that is why we have not signed up to it. We are working with APSCo to try to resolve our concerns.”

When contacted by Recruiter to ask Hays what those concerns were, a Hays’ spokesperson says: “It isn’t appropriate for us to answer these questions while we are still in discussions with APSCo.”

Kevin Barrow, a partner at Osborne Clarke, tells Recruiter: “I think it is fair to say that any arrangement of this nature needs to be scrutinized to check that it doesn’t constitute a breach of competition law…

“Any formal or informal understanding or agreement on how competitors deal with each other could fall within the ambit of competition law. Any large staffing company would want to satisfy themselves on that and I imagine that is what Hays would be checking.”

In 2009, Hays was fined £30.4m by the Office of Fair Trading for its part in a cartel of construction recruitment agencies, which operated in 2004-05. Five other recruiters were also fined.

Ann Swain, chief executive of APSCo, tells Recruiter: “I feel confident that we will see Hays sign up. We have had deep discussion with Hays and we look forward to a favourable outcome.”

Meanwhile temporary labour procurer de Poel, another staffing firm that has not signed up to the code, explains its reasons. In a statement, it tells Recruiter: “As we are not an RPO or MSP company, we aren’t eligible for the separate code of conduct laid out for these organisations by APSCo. 

“That said, we aim to support the APSCo code’s objectives of recognising, supporting and promoting excellence within the recruitment market. As an organisation, de Poel has always conducted our business to the highest standards and ethics, working in partnership with supplier agencies to deliver real benefits for our customers.”