Employment agency standards (EASI) inspectorate annual report 2018 - 2019

Employment agency standards (EASI) inspectorate annual report 2018 - 2019

• The Employment Agency Standards report for 2018-2019 was published on the 12 January 2021 and contains data relating to the performance and achievements of the Employment Agency Standards Inspectorate (EASI).
• The report contains information relating to the EASI’s commitments in the ‘Good Work Plan’ which includes the introduction of a Key Information Document, the abolition of Pay Between Assignments’ contracts and on-going work to prepare for the extension of EASI’s remit to cover ‘Umbrella’ companies.

• There has been a large growth in the recruitment sector. The Recruitment and Employers Confederation estimated that in 2018 there were 31,566 employment businesses/agencies. The combined turnover of these businesses had grown from £8.3 billion in 1995 to £63.7 billion in 2018.
• The Office for National Statistics also estimate that the number of agency workers has increased from 620,000 in the late 1990s to approximately one million in 2018 (ONS, 2019).

• In 2018/19 EASI recovered £76,000 for workers. Since April 2008 over £1.6 million has been recovered.
• In 2018/19 EASI has dealt with over 55% more complaints, they conducted 61% more targeted inspections and identified 39% more breaches than in the previous reporting year.
• The largest volume of complaints were about the failure to pay a worker.
• EASI issued a total of 205 warning letters to businesses found to have infringed their obligations and sought compliance with the relevant provisions of the legislation. This was an increase of 62% from the previous reporting year.
• EASI has issued four Labour Market Undertakings during this reporting period and is
• working with those businesses to support them in becoming compliant.
• The EASI conduct unitary operations looking at high-risk sectors, as well as joint operations with HMRC’s NMW team and the Gangmasters and Labour Abuse Authority (GLAA).

The report can be found here.

Aspire Comment

It is important that all employment businesses comply with the Conduct Regulations as this is what the EASI will check upon visiting you. A visit may be intelligence-led or complaint-led. Intelligence-led work arises from working with partners such as the Pensions Regulator, Home Office Immigration Enforcement, the police, HMRC’s NMW team and the GLAA.

When Parliamentary time allows, legislation will be introduced which will extend EASI’s remit and powers to allow them to investigate complaints against umbrella companies and regulate the in a similar way to employment businesses. However, umbrella companies do not need to comply with the Conduct Regulations and so, it will be interesting to understand how the EASI will conduct investigations and what topics they will explore with the umbrella company, versus HMRC’s existing approach into these types of business.