Employment Law Changes for Recruitment Businesses: What Leaders Need to Know with Hannah Morrison, Partner at Brabners

Okay.

Now, there was also

changes that took place in April where ordinary paternity and unpaid parental leave became day one rights, I think from 26 weeks service previously.

Is that right? Correct.

That's right.

Yep.

You know, collective redundancy changes that don't affect most recruiters.

However, the new Fair Work Agency... is, for me, quite a big deal.

And, you know, obviously it's combining the Gangmasters and Labour Abuse Authority, elements of HMRC on pay and tax, and what used to be the Employment Agency Standards Inspectorate.

But most importantly...

They have staffed up big time, haven't they? And I've certainly seen an increase in my circle of recruitment businesses and a big increase in the number of inspections.

Does that follow a trend that you've seen?

It does to a degree.

I had... sort of anecdotally heard about an increase in employment agency standards inspections prior to April whilst they still were a standalone body.

And actually when they formed with the other entities you've mentioned with effect from the 7th of April to create this new almost sort of super regulator called the Fair Work Agency, very much the position, the statement that was put out by the Fair Work Agency was you know, we take this job seriously, but we are going to need some time to bring these different governmental bodies together, you know, work out what our strategy is, work out, you know, how we're going to allocate our resources.

And I, for one, was not really anticipating any, you know, meaningful action from them probably until next year.

But actually, I have heard of some businesses, particularly within the recruitment sector over the last few weeks who are being contacted by the Fair Work Agency.

primarily as part of a sort of light touch investigation, let's say.

I think the Fair Work Agency are trying to get a feel for the market, trying to gather intelligence.

I'm not aware of any businesses that have had yet a formal inspection or are at risk of facing any penalties or fines or whatever, but that could welcome down the track.

And this sector is particularly susceptible to investigation, I think, just because the primary focuses of the Fair Work Agency are going to be on Lower paid workers, which could include, you know, a lot of agency workers, holiday pay, statutory sick pay, national minimum wage, and really sort of being the voice for those workers who, you know, aren't necessarily aware of or capable really of enforcing their employment law rights themselves.

the more sort of vulnerable workers, if you put it in those terms.

And, you know, because a lot of temporary agency workers could fall into that category and because of the sheer volume of payments that are flowing down the supply chain and that are being processed and therefore the risk of things like holiday pay or national minimum wage being miscalculated or indeed in certain parts of the sector, simply fraudulently not being paid.

This sector is likely to be on the Fair Work Agency's radar.

And as you say, they have been recruiting.