Employment Agency investigations lead to repayments to workers and penalties on agencies

CT front page - agencies

Taking action on recruitment agencies is one of my 6 pledges.

Information I obtained today in answer to a Parliamentary Question shows that penalties have been levied on two Corby agencies for failing to pay wages properly to local workers as part of my ongoing local campaign.

I have been working closely with the Employment Agencies Standards Inspectorate and Her Majesties Revenue and Customs to take action where local agencies are abusing employees. Investigations have been taking place in twelve local agencies, two are now completed and ten are ongoing.

In the two agencies where the investigations have concluded, they have received automatic penalty charges totalling £1532 and workers have been repaid wages totalling £3154. These cases Read the rest of this entry »


Launching the Corby Employment Agency Code of Practice

Corby probably has the highest concentration of employment agencies in the country. Some act properly and treat people fairly and the work they do helps supports local businesses by providing them with a flexible workforce that enables them to respond to changes in demand and conditions in their markets.

However, there are employment agencies operating in Corby who are exploiting workers and adding significantly to a climate of job insecurity and a ‘race to the bottom’ with regard to pay and conditions. In May of this year, I convinced HMRC and the Employment Agency Standards Inspectorate to carry out a three-day operation, visiting 34 local employment agencies. They uncovered £100,000 owed to 3,000 employees in the area.

In response to this I have two tabled two Private Members Bills in Parliament.  One that seeks to end the exploitation of zero hours contracts, the other that seeks to extend the powers of the Gangmasters Licensing Authority to enable it to regulate employment agencies in all sectors of the economy.

As well as this action in Parliament, I have been working hard locally in partnership with the Labour Leader of Corby Borough Council, Tom Beattie, to set up the Corby Employment Agencies Forum. The aim has been to establish common, high standards of practice within the employment businesses’ sector in the town.

Today we are launching our Code of Practice (which can be downloaded here) with pledges from a number of agencies and employers to sign-up and abide by its terms. We have developed this through engaging employment agencies, trade associations, client companies, temporary workers themselves and trades unions in the work of the Forum.

We intend the Code to be a kind of ‘kitemark’ for those companies engaged in the employment of temporary workers within the town – a guarantee that they will operate in a legal, fair and socially responsible manner in these transactions. Borrowing from some of the content of the Gangmaster Licensing Authority Standards, it sets out three sets of responsibilities for those involved in temporary working:

  • Employment Agencies/Businesses
  • Their Client Companies
  • Temporary Workers

Gaining the buy-in of employers is crucial, given their power to influence the behaviour of the agencies with which they contract. The Code offers them the demonstration of a commitment on the part of these labour suppliers to operate in a lawful and ethical manner, providing a component for a company’s quality strategy and its corporate responsibility charter. In return, employers commit to:

  • Avoiding the replacement of permanent jobs with temporary employment through effective workforce planning
  • Carry out regular reviews with their agencies to establish that the management of temporary workers on site is carried out effectively and professionally
  • Contract only with agencies that sign-up to the Code

The Forum and the Code do not replace the need for a proper regulatory framework for employment businesses. However, the current government have weakened this – through the recently-announced winding up of the Employment Agency Standards Agency – rather than taking action to tackle abuses in the sector. In these circumstances, I am determined to do what I can to make Corby and East Northamptonshire a great place to work where laws designed to protect working people are upheld, everyone is treated fairly and with respect when they are at work and there are routes from temporary to permanent employment.

With the Forum promoting and up-holding this Code, I believe that we will make a real difference in creating an ethos of fairness and establishing an appropriate balance of power in the local job market.

My Zero Hours Bill will protect lowest paid and most vulnerable workers

On Monday 24th June, I will present two Private Members’ Bills to the House of Commons that seek to offer greater protection for the lowest paid and most vulnerable workers in Britain.

The Zero Hours Contracts Bill will prohibit the use of zero hours employment contracts. It aims to end the scandal of employers requiring workers to be available for work but where there is no guarantee of work available.  The Office of National Statistics estimates at least 200,000 people are employed on zero hours contracts in the UK, of which 75,000 are aged 16-24.   Zero hours contracts are now widespread in many sectors of the economy and are particularly prevalent in areas of higher unemployment where the lowest paid and most vulnerable workers in Britain exist without knowing when the next payday might come.

Hundreds of constituents have contacted me about zero hours contracts. People tell me about waiting for a call or turning up to the workplace day after day, only to find that there is no work, yet their contracts make it difficult to find alternative employment or to claim job seekers.  I have heard examples of people making childcare arrangements or paying for transport to work and then waiting for hours before being told they are not needed. Other people have told me that because of zero hours contracts they are unable to get a bank overdraft, a mortgage or car finance. Read the rest of this entry »

Corby Employment Agency Summit

Agency Summit front page


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