The report seeks to encourage the contribution recruitment businesses make to the flexibility of our labour market and to streamline regulations.

Keith Faulkner, Chair of Tempo, comments: “The fact that the Government launched a consultation into the Conduct of Employment Agencies and Employment Businesses Regulations 2003 to reform how the recruitment sector is regulated is a welcome move. On behalf of our members and partner hirers, Tempo agrees that there is a need to make the labour market more transparent and fair.

“The labour market has undergone a radical transformation in recent years, with more and more employers choosing to opt for temporary workers – it is worth noting that a 5.5% increase in turnover from temporary and contract business actually drove the growth of the recruitment industry in 2012. With that in mind, protecting both these workers and employers in order to encourage further growth in flexible working practices and the consequent economic and social benefits must be a priority for this review.

“As such, Tempo would recommend that the Government considers very carefully how a Code of Practice might obviate the need for extensive regulation. If self-regulation is to be effective then transparency is very important in order that all parties can have confidence in both the Code of Practice being observed and all regulatory requirements being met.

“A strong Code of Practice could play a significant role in both ensuring that minimum standards are met and in raising those standards over time. Tempo, by virtue of representing both agency and employer views, does not believe that a Code of Practice agreed and enforced solely by the several trade associations that represent the agency sector (or parts of it) is as likely to achieve this objective as a more broadly based body. Such a body would certainly include the trade associations but should also include employer representation.”