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How Streamlining Your Agency Labour Procurement Improves Compliance

1 June 2022

If your job requires you to hire temporary workers, you're no stranger to the legal and logistical issues that come with it. Filling temporary roles, which are frequently shift-based and low-wage, can be difficult, especially when people in short supply and high demand. The temporary staffing market has always been very competitive, and this trend shows no signs of abating.

Of course, compliance aspects should be covered in your agency service agreement (if you have one), but to truly ensure your workforce is – and remains – legally compliant, we recommend that all agencies be audited at least twice a year to stay up to date on exactly what is going on with your temporary workforce and/or use a neutral vendor managed service to streamline your entire temporary and contingent labour recruitment process. Continue reading to learn about more strategies to guarantee your team is legally compliant.

How can streamlining your agency labour procurement improves compliance?

1. It guarantees you are in compliance with the National Living Wage.

Employers must pay workers aged 25 and up at least £7.20 per hour under the National Living Wage, which was implemented in April 2016. This 50p per hour rise above the previous rate is the next step in achieving a minimum wage of £9 per hour by 2020. It is a criminal offence for an employer to fail to comply, therefore be extremely careful to pay the appropriate amounts to the right people, especially when it comes to agency workers. You should also be aware that certain umbrella schemes pay employees less than the living wage without their knowledge..

2. DBS checks are performed on your behalf.

One of the most critical things you can do to guarantee your organisation and its workers are legally compliant, especially in the care industry, is to conduct the proper background checks on your employees. The Disclosure and Barring Service (DBS) and Independent Safeguarding Authority (ISA) and assists employers in making safer recruiting decisions while also preventing unsuitable individuals from working with vulnerable groups.

3. Right to Work Checklists

Before you hire any new employees, you must conduct specific checks on potential employees of all nationalities to ensure they have the right to work in the UK. Along with examining identifying documents such as passports, birth certificates, or identity cards, you should also ensure that all images and dates on the documents are consistent, and you should be aware of any work restrictions. Each document must be copied and safely kept after it has been examined.

4. Ensure that you are compliant with agency worker regulations.

Agency Workers Regulations were enacted to provide agency workers with the same basic employment and working conditions as if they had been hired directly following a 12-week qualifying period. To put it another way, it is necessary to ensure that temporary and contract workers have the same rights as permanent employees. This can be especially difficult to manage if you are a huge corporation with numerous divisions and trading identities, as well as multiple authorities - you may be violating legislation without even realising it. However, as an employer, it is your responsibility to guarantee that your employees are treated fairly, from yearly leave to rest breaks and job vacancies.

5. Ensure Complaince With Modern Slavery Act

The Modern Slavery Act, enacted in October 2015, aimed to eradicate modern slavery and human trafficking in the United Kingdom. If your company's annual revenue exceeds £36 million, you must comply with the Act by producing and publishing an annual slavery and trafficking statement. The statement should describe what efforts your company has taken or has not taken throughout the year to guarantee that slavery and human trafficking do not occur in any aspect of your business or supply chain.

It may appear to be a lot to keep track of, but RPO technology is a terrific way to stay on top of what's going on in your company and guarantee that your workforce is legally compliant. You may get overall supply chain visibility and control by centralising information such as DBS checks, work permits, certifications, and health and safety training.

Get In Touch!

By partnering with a technology driven RPO company, organisations have real time visibility and control which provide the foundation for effective management of a contingent workforce. Recruitment Process Outsourcing has emerged as a major new business service that helps organisations increase earnings per share, protect operating profit and free up more money to reinvest in the company, its technologies and growth. New technologies and RPO services now make spend and agency management simple across an entire organisation — not just a single cost centre.


Download the eGuide: 'Enabling Visibility & Control in Our temporary Supply chain'.


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