§ Mr. JackTo ask the Secretary of State for Trade and Industry by what means recruitment companies will be advised of proposed changes to regulations relating to the industry to be introduced in the next five years. [2861]
§ Alan Johnson[holding answer 11 July 2001]: The Department makes information on changes to regulations available on its website, www.dti.gov.uk, and is also in regular contact with the main recruitment industry bodies.
§ Mr. JackTo ask the Secretary of State for Trade and Industry (1) what assessment she has made of the impact on smaller recruitment companies of the proposed new regulations contained in the draft Employment Agencies Bill; [2859]
(2) what steps she is taking to ensure that smaller private recruitment companies are not financially disadvantaged by the proposals in the temporary agency work directives. [2856]
§ Alan Johnson[holding answer 11 July 2001]: A regulatory impact assessment on the proposed new employment agency regulations has been produced and published on my Department's website. This considers the impact on small firms, and concludes that the proposed changes affect small and large firms equally.
A draft European directive on temporary agency work is expected to be issued by the European Commission in the autumn. The Government will work to ensure that any 36W such proposal supports the promotion of employment and does not reduce labour market flexibility or restrict the activities of recruitment companies whatever their size.
§ Mr. JackTo ask the Secretary of State for Trade and Industry what the definition of quarantine period is in the draft Employment Agencies Bill regulations; and if she will set out the reasons for proposing this measure. [2857]
§ Alan Johnson[holding answer 11 July 2001]: "Quarantine period" is a term used (though not in the regulations themselves) to describe the period following the ending of a hiring during which conditions (such as payment of a transfer fee) may be imposed when a temporary worker takes up permanent employment with the hirer or some other person. Under the current draft regulations, this period is 14 weeks from the start of the hire or eight weeks from the end, whichever is the later, where permanent employment is taken up with the hirer. Where the worker takes up work with another person (including another agency) the period is four weeks from the end of the hire. The Government believe that onerous restrictions on transfers, such as high transfer fees, restrict labour market flexibility and competition, and act as a disincentive to workers taking up permanent employment. The use of a "quarantine period" was suggested by the recruitment industry, as an alternative to restrictions on transfer fees as such.
§ Mr. JackTo ask the Secretary of State for Trade and Industry what plans she has to reintroduce licensing and the monitoring of the work of private recruitment agencies; and if she will make a statement. [2860]
§ Alan Johnson[holding answer 11 July 2001]: The Government have no plans to reintroduce licensing of recruitment agencies. They are monitored by my Department's employment agency standards inspectorate, which receives approximately 12,000 calls a year, and carries out full investigations in 1,200 cases. This ensures that resources are targeted on the relatively small number of agencies who break the rules or exploit clients or workers.
§ Mr. JackTo ask the Secretary of State for Trade and Industry if she will make a statement on the prospects for small private recruitment companies over the next five years. [2858]
§ Alan Johnson[holding answer 11 July 2001]: The recruitment industry—a large part of which consists of small companies—is an important and successful part of the labour market, as shown by recent growth in turnover of 28 per cent. a year, and we expect it to continue to thrive.