Agency Labour

What you should do - ETI

The requirements under the ETI Base code - the only elements here are those which go over and above the legal requirements.

Agency labour provides essential flexibility as a supplement to the core workforce but the ETI Base code 8 states that “Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labour-only contracting”.

Labour users should therefore plan their labour needs throughout the year in order to maximise the level of permanent employment contracts on offer, either directly or via an agency.  Internal reporting on the number of workers engaged on each form of employment should be conducted to monitor adherence with this commitment to permanent employment.

Working with labour providers

Labour Users should work together in partnership with Labour Providers to ensure that legal requirements are complied with, risks are controlled and that good practice is implemented.

A 5 Step process may be adopted as follows which is covered in more detail in the “How to comply – what it looks like in practice” sections:

STEP 1 - Check that the labour provider is GLA licensed

STEP 2 - Ensure that the rate paid to labour providers covers legal requirements and a profit margin

STEP 3 - Work in partnership to set and agree standards

STEP 4 - Cooperate to ensure compliance with the Agency Workers Regulations

STEP 5 - Conduct ongoing due diligence

Resources that can help

GLA Licensing

ALP Workshop - "Complying with the Gangmaster Standards)

Agency Labour Best Practice & Audit Tool

GLA Good Practice Guide for labour users

ALP Checklist for Using labour providers

HM Revenue & Customs - Use of labour providers - Advice on Due Diligence

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