§ Mr. Cyril Smithasked the Secretary of State for Employment if he will bring forward proposals to provide that employment agencies cannot charge as a fee more than 10 per cent. of the salary of employees placed with firms.
§ Mr. Harold WalkerMy right hon. Friend proposes to bring the Employment Agencies Act 1973 into operation as soon as possible after the amendments to it in the Employment Protection Bill become effective. The Act provides no powers for the control of fees charged by employment agencies to employers, but regulations will be made under the Act to ensure that employers are made fully aware of agencies' current terms of business before they engage workers through them and, further, the agencies will have to keep my Department, as licensing authority, informed of those terms. It is our intention to review the whole question of the need for further legislation in relation to private employment agencies and businesses in the light of the working of the Act and of a study of their rôle in the labour market.
§ Mr. Cyril Smithasked the Secretary of State for Employment if he will bring in legislation to make it a criminal offence for an employment agency not to inform an employee of the sum an employer is paying an agency for the hire of the employee.
§ Mr. Harold WalkerWhen the Employment Agencies Act 1973 is brought into operation, it will become114W an offence for an employment business to contravene or fail to comply with regulations made under Section 5. There appears to be no evidence, however, that a provision along the lines suggested by the hon. Member would serve any useful purpose, or be justifiable within the terms of that section.