Recruiters face compliance calamity

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A quarter of UK recruitment firms have no idea whether recent legislative changes will affect their day-to-day operations, despite sustained warnings.

Research from software company Mercury xRM shows that a large proportion of temporary and permanent staffing firms are risking heavy fines by failing to understand the impact of new reporting requirements linked to the Onshore Intermediaries legislation. Some 25% of respondents admitted they did not know whether their existing processes would be affected, while a further 8% thought they would be immune from the changes.

The study also found that 40% of agencies are unsure about how to record documentation for health and safety acceptance or DBS checks. A similar proportion was found to be unable to report unique taxpayer details.

In addition, almost a third (30%) of recruiters do not record documentation for anti-bribery and Professional Indemnity insurance certificates – an omission that could land them in hot water.

Despite the gloom, Mercury’s research found that help is available for staffing firms struggling to cope. Some 64% of respondents said their existing software was able to handle legislative changes, while 100% were confident in their ability to ensure contractors remained compliant at the start of their assignments.

Mark Britton, marketing manager at Mercury xRM, said: “While it is encouraging to see that all the agencies we spoke to are making a conscious effort to remain compliant at the start of an engagement, it’s worrying to see that many are struggling to remain compliant when new changes are introduced.”

Have your say

Are you a recruiter? Are you struggling with compliance? Do you think there is enough guidance available to help staffing companies deal with changes to the law? Join in the discussion on Twitter, or leave a comment below.