The Department for Business Innovation & Skills (BIS) has launched the ‘Consultation on reforming the regulatory framework for employment agencies and employment business'.

Jo Swinson MP, minister for employment relations and consumer affairs, comments: “The flexibility of the UK’s labour market allows people to move between jobs and allows businesses to quickly respond to changing demands. The government is committed to ensuring that employment law supports and maintains the UK’s flexible labour market.”

BIS outlines that it is aiming to “reform how the sector is regulated, removing costly and complex regulations where possible, so that the sector continues to contribute to a flexible and effective labour market”, simplifying or creating new regulations in certain places as deemed appropriate.

The consultation centres on four ‘outcomes’ BIS believes what it calls “the future system” should achieve, namely that:

• Employment businesses and employment agencies are restricted from charging fees to work-seekers

• There is clarity on who is responsible for paying temporary workers for the work they have done

• The contracts people have with recruitment firms should not hinder their movement between jobs and temp-to-perm transfer fees are reasonable

• Work-seekers have the confidence to use the recruitment sector and are able to assert their rights

Views are being sought on these four outcomes, and whether any other outcomes should be achieved. Questions subordinate to these examine whether agencies should in fact be allowed to charge fees to workers, the role of trade associations in maintaining standards and whether agencies should be required by law to keep records of their activities.

The open consultation has been sent to a number of individuals and organisations, including recruitment industry bodies the APSCo, ARC, IOR, REC, the Recruitment Society and TEAM, as well as organisations including the Chartered Institute of Personnel & Development, the Confederation of British Industry and the Federation of Small Businesses. BIS is also looking for further parties that should be consulted – as it is an open consultation, anyone may reply.

Responses to the document are invited by 11 April, via letter, fax, email or online surveys service SurveyMonkey.com. The government will publish a summary of these responses within 12 weeks of that deadline.