Revised draft regulations governing employment agencies have just been issued by the Government. The draft regulations are submitted for comments by 16th March and the regulations are expected to come into force in summer 2001.
One of the key areas covered by the regulations is the issue of employers having to pay agents a fee when they wish to offer temporary agency staff permanent employment. The regulations provide that an employment agency cannot enforce any contractual term requiring a hirer to pay a transfer fee in this situation UNLESS the contract between the hirer and agency gives the hirer the alternative option of continuing to hire the worker through the agency for a further agreed period, after which the hirer can employ the worker without penalty. Further, where a hiring has ceased, the agency cannot enforce a transfer fee in respect of the hirer employing the worker after a certain period has elapsed (the greater of either 8 weeks from the day after the last day
