Employment Agencies

Oral Answers to Questions — Trade and Industry – in the House of Commons at 10:30 am on 1 December 2005.

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Photo of Gerry Sutcliffe Gerry Sutcliffe Parliamentary Under-Secretary (Trade and Industry) (Employment Relations and Consumer Affairs)

The Department of Trade and Industry's employment agency standards inspectorate enforces the legislation regulating the activities of the private recruitment industry. Inspectors visit agencies' premises to examine their records. The inspectorate can prosecute an agency found to be in breach of the legislation, and the maximum fine is £5,000 for each offence. The inspectorate can also apply to an employment tribunal for an order prohibiting an individual from operating an agency or employment business for up to 10 years.

Photo of Bob Blizzard Bob Blizzard PPS (Mr Douglas Alexander, Minister of State), Foreign & Commonwealth Office

I thank my hon. Friend for that answer. Is he aware of an organisation called Placement UK HR Ltd., which, in a booklet entitled "Half price staff: Shhhh! It's the best kept secret . . . ", proudly boasts that it can supply "graduate calibre staff" for

"Just £7000 per Annum—All in . . . No National Minimum Wage . . . No PAYE . . . No Employers N.I. Contributions . . . No Holiday Pay . . . No Sick Pay . . . No Contract of Employment . . . No problem"?

Will he look into this as a matter of urgency, because the outfit is clearly intent on trying to make a mockery of every piece of employment legislation that we have ever passed in this place?

Photo of Gerry Sutcliffe Gerry Sutcliffe Parliamentary Under-Secretary (Trade and Industry) (Employment Relations and Consumer Affairs)

I am grateful to my hon. Friend for raising the issue. Obviously, we will look into the company, which is operating illegally by not paying the national minimum wage and in the other ways that he raises. There is a change of demography in the workplace, so it is important that we monitor what happens with such agencies. There is, quite rightly, an influx of legal migrant workers into the UK through agencies, so I am keen to hear of any instances of people being exploited. I am sure that hon. Members on both sides of the House want to ensure that no one is exploited by any agency that does not operate properly.

Photo of Anne McIntosh Anne McIntosh Shadow Minister (Foreign and Commonwealth Affairs)

Is the Minister aware that there is a grey area of the law that applies to people based in this country who are recruited by employment agencies—particularly those based in Holland—to work on German construction sites, especially? They are not employed on the same terms and conditions as those working in Holland and Germany. Is the Minister prepared to examine the matter?

Photo of Gerry Sutcliffe Gerry Sutcliffe Parliamentary Under-Secretary (Trade and Industry) (Employment Relations and Consumer Affairs)

I am happy to enter into correspondence with the hon. Lady about the case, or to see her. There is a change in demography and the way in which work operates throughout Europe, but we need to make sure that people are not exploited. I am happy to hear evidence from hon. Members about agencies that are not working properly.

Photo of Chris Bryant Chris Bryant PPS (Rt Hon Lord Falconer of Thoroton, Secretary of State), Department for Constitutional Affairs

The Minister referred to the exploitation that sometimes occurs when migrant workers are brought in by frankly corrupt and oppressive recruitment agencies in this country. One of the difficulties that we find when we try to regulate them is getting details from police forces in other European countries. Will he co-operate with the Home Office on pursuing the issue, to try to ensure that when the police in this country investigate such matters, they can get access to police records, especially Polish ones?

Photo of Gerry Sutcliffe Gerry Sutcliffe Parliamentary Under-Secretary (Trade and Industry) (Employment Relations and Consumer Affairs)

My hon. Friend raises an important point. There is a cross-departmental approach on workers coming from other member states. He will be aware that a great deal of work has been done with the Portuguese and Polish embassies to try to give information to workers who might come across from those countries about their rights, which should stop them being exploited. I am happy to work with all agencies to ensure that we continue to monitor the situation.