“In section 13 of the Employment Agencies Act 1973 (interpretation), for subsection (3) substitute—

‘(3) For the purposes of this Act “employment business” means the business (whether or not carried on with a view to profit and whether or not carried on in conjunction with any other business) of participating in employment arrangements.

(3A) “Employment arrangements” means arrangements under which persons who are, or are intended to be, in the employment of a person are, or are intended to be, supplied to act for, and under the control of, another person in any capacity.

(3B) “Participating in” employment arrangements means doing any of the following in connection with the arrangements—

(a) being an employer of the persons who are, or are intended to be, supplied under the arrangements;

(b) paying for, or receiving or forwarding payment for, the services of those persons, in consideration of directly or indirectly receiving a fee from those persons;

(c) supplying those persons (whether or not under the arrangements);

(d) taking steps with a view to doing anything mentioned in paragraphs (a) to (c).’”—(Justin Madders.)

This new clause would expand the scope of the Employment Agencies Act 1973 to cover other types of business that participate in arrangements under which persons are supplied by their employer to work for other persons (such as “umbrella companies”).

Brought up, and added to the Bill.