Agencies face compliance testing

Tue 19 Aug 2008 at 2:13 PM

Recruitment agencies providing accountancy or umbrella company services to the recruitment industry will face new compliance tests, it has been reported.

Agency trade body the Association of Technology Staffing Companies ATSCo said the regulation is in response to a recent government focus on the temporary worker market.

"The risks of non-compliance for providers of tax and employment related services to contractors has increased significantly," commented director Marilyn Davidson.

"These checks will give staffing companies a significant measure of assurance that service providers in the contractor market are operating in accordance with the law."

The audits have been devised with HM Revenue & Customs, and will ensure companies follow tax and employment laws.

The tests will be administered by Professional passport, a compliance and risk management firm.

Temporary workers and people seeking part time work often turn to job agencies for up-to-the-minute job vacancies.