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Blog > Compliance Thoughts > February 2010 > Specialist Agency Given 10 Year Trading Ban

Specialist Agency Given 10 Year Trading Ban

I recently submitted an article expressing my concerns over inadequacies discovered by the authorities from Employment Compliance audits on certain agencies trading within the Education and Health Care sectors. (See Article 6 Point Plan To Avoid EAS Potential Prosecution!)

 

My focus at that point was that we, the Recruitment Industry, should have a duty of care to our children and vulnerable people who entrust us with their daily welfare.

At the risk of being labelled Mrs Angry from Derby I do have to comment on events following an investigation by the Employment Agency Standards inspectorate (EAS), where the outcome was that the directors of an HGV recruitment company have been banned from running an employment agency for up to 10 years.

Thankfully on this occasion there was no Corporate Manslaughter charge, more luck than judgement I believe.

However the hearing at Leeds Employment Tribunal did hear how they broke the law by:     

  • Failing to keep adequate records     
  • Withholding payment of wages to drivers;·       
  • Failure to issue Terms of Employment /Contract for Services to drivers;·       
  • Ignoring legislative requirements to carry out checks on drivers, such as confirming their identity or that they held the correct driving licences; and      
  • Supplying drivers who did not hold the required licences.

 

The agencies, supplying HGV drivers to hirers in Yorkshire and the North of England and trading under various trade names  have ceased trading, I am pleased to say.

 

Duty of Care has no limits and anyone working behind the wheel of any vehicle should be assessed, vetted and confirmed “Fit for Role”.

No more so than a person controlling 35+ Tonnes of a potentially deadly weapon.

 

I empathise with any company having to conform to the difficult administrative practices as required by current Employment legislation however by initiating simple and strategic procedures, trading bans and financial penalties could be avoided.

 

I echo the comments of Lord Young, Minister responsible for Employment Relations, who says: “Rogues like these give the recruitment sector a bad name so I am delighted to see the tribunal’s decision putting the brakes on their unacceptable behaviour. The EAS will continue to take action against unscrupulous agencies to protect workers and hirers from illegal practices.”

 

I believe the investigation and outcome of this specific case sends out a clear message to the industry that they will act against those agencies that break the law and that ALL companies should let their consciences be their guide and ensure that the necessary policies and procedures are in place and practiced daily.

 




 




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