Business officials vow to hit 'sinister' agencies

Recruiters in the IT sector who are “sinister” and not just “clueless” about compliance will become the targets of a clampdown, the business department has signalled.

Speaking to contractor service providers at a seminar in London, officials at BIS said their enforcement “focus” would be on the minority of agencies that break the rules with malice.

“’Sinister’ as opposed to ‘clueless’ non-compliance” is the target, said Adrian Marlowe of Lawspeed, which ran the seminar with the department of Business, Innovation & Skills.

He said that attendees felt that HM Revenue & Customs was “taking the recruitment sector down a path which is likely to damage” it, referring to ‘SDC’ and other legislative attacks.

A BIS official tried to reassure the room, saying the minister - Nick Boles - values the sector’s contribution; is passionate about the flexible workforce and believes in cutting red tape.

With a de-regulatory package on the agenda, potentially for unveiling this month, the business official outlined what rules could change and which ones will remain.

Top of the list is removing R.7 of the Conduct Regulations relating to striking workers, and the closing of a loophole - a ban on recruiting from overseas without advertising locally.

As part of the move to strengthen enforcement, a labour market enforcement director will be introduced and the agency regulations will be enforced, as will rules on worker payments.

But settling disagreements between firms is an area that won’t be invested in, as “business-to-business disputes are not a good use of BIS inspectorate time,” the official said.