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.