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Ally Tow
Ally Tow,
Paying commission to employment businesses/ agencies
31 August 2018

The Conduct of Employment Agencies and Employment Businesses Regulations were brought into effect in 2003 to monitor recruitment businesses charging transfer fees for a temporary worker filling a permanent role. 

As a result of these regulations, 'effective cause of introduction' has been a rising area of law, whereby hirers are required to pay a transfer fee for filling a permanent role with a temporary worker. Businesses that claim to have made the introduction, are now coming under close watch for trying to position themselves falsely as a recruitment business. 

Ally Tow, Senior Associate Chartered Legal Executive, has written more on the topic on Personnel Today here

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.

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