Definition
A business that acts as an intermediary between employers seeking to fill vacancies and candidates looking for work. Agencies may supply temporary workers, find permanent candidates, or provide a combination of both services.
UK Context
UK recruitment agencies are regulated by the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003. Agencies must not charge work-seekers a fee for finding them work (with limited exceptions in entertainment and modelling). The Agency Workers Regulations 2010 give agency workers the right to equal treatment after 12 weeks in the same role.
Best Practices
- Agree clear terms of business including fees, rebate periods, and candidate ownership before engaging
- Verify that the agency complies with the Conduct Regulations and does not charge candidates fees
- Ensure agency workers receive information about comparable employment conditions from day one
Frequently Asked Questions
Can a recruitment agency charge candidates a fee?
No, since April 2018 it has been unlawful for recruitment agencies to charge fees to work-seekers in almost all sectors. Limited exceptions apply to the entertainment and modelling sectors.
What is the difference between an employment agency and an employment business?
An employment agency introduces candidates to employers for direct hire. An employment business supplies temporary workers who are employed or engaged by the business itself and placed with hirers. Many firms operate as both.