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REC seeks details from BIS after agencies inspections reveal breaches in regulations

REC seeks details from BIS after agencies inspections reveal breaches in regulations

The REC has contacted the Department of Business Innovation and Skills (BIS) following spot-check inspections of recruitment agencies in Exeter by the Employment Agency Standards inspectorate in co-operation within HMRC. According to the BIS press release a high proportion of the 52 agencies they visited were breaching employment laws and, in some instances, were alleged not to be meeting National Minimum Wage regulations.

The REC is currently seeking more details about the specific nature of the breaches and about any inspected agencies which are within REC membership and RECs Code of Professional Conduct.

Commenting on the information available so far, Clare Flower, the RECs Compliance Manager, said:

It is crucial that we understand the specific areas of non-compliance and how serious the breaches were. Issues linked to NMW regulations must be taken extremely seriously and examples like this reflect badly on the industry as a whole. However, it is important to note that it is nine of the 52 agencies inspected who will be subject to further investigations for suspected NMW breaches, not the majority. We assume the other breaches were for less serious offences.

We need to get to the bottom of this and see what needs to be done in terms of raining awareness of regulatory requirements and potential training needs. However we will reserve judgement until we get further clarification from Employment Agency Inspectorate.

Clare Flower added: Although we are keen to see details of the type of offences, it is encouraging to see different Government inspectorates working together, in this case BIS and HMRC. Better co-ordination and targeting of enforcement activities is something the REC has consistently called for.

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