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30 June 2009 - Employment agencies to face tougher scrutiny in the future

An Employment Bill, which will strengthen powers of investigation and prosecution of unscrupulous employment agencies, has reached the second stage in the Assembly.

The Bill, which was introduced by Employment Minister, Sir Reg Empey, will enable the Department for Employment and Learning to pursue serious offences under employment agency law in the Crown Court, with the potential for unlimited fines. In addition, the Department will be able to demand financial information from banks about agencies under investigation.

Speaking after the second reading of the Bill, the Minister said: “The vast majority of employment agencies comply with the law and make an important contribution to the local economy. It is, however, necessary for my Department to have the powers outlined in the Bill in order to deal with the small number of agencies that bring the industry into disrepute.

“At present the maximum fine for a breach of employment agency law is £5,000, which is no deterrent to an agency which may be exploiting vulnerable workers and making money by acting illegally. The powers to demand financial information from banks will be used sparingly and only after an agency has refused to provide the data for investigation purposes.”

The Bill also contains measures to allow the Department’s Agency Inspectors to exchange National Minimum Wage information with HM Revenue and Customs and other minor and technical amendments. It is intended that the Bill will complete remaining Assembly stages by the end of the year.

Notes to Editors:

1. The Department estimates that there are approximately 300 employment agencies in Northern Ireland.

2. DEL’s Employment Agency Inspectors are responsible for ensuring that all employment agencies comply with the Employment (Miscellaneous Provisions) (Northern Ireland) Order 1981 and the Conduct of Employment Agencies and Employment Businesses Regulations (Northern Ireland) 2005. They carry out routine inspections on all employment agencies in Northern Ireland and investigate any complaints made to the Department.

3. The Bill also contains proposals in relation to the operation of the Industrial Court and a number of “tidying up” measures.

4. Media queries to the Department for Employment and Learning Press Office on 028 9025 7872. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.


Department for Employment and Learning News