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Agencies 'must take care when contracting with intermediaries'
General News |
12/02/2010
All recruitment agencies should take additional care when contracting with intermediary companies, it has been suggested.
Commenting after umbrella company Albany UK entered administration, Kevin Green, chief executive of the Recruitment and Employment Confederation (REC), said it was understandably "a worrying time" for agencies.
He said members often face difficulties when assessing risk within intermediaries and should take advice on their liabilities where possible.
Mr Green stated: "At this stage we are not in a position to recommend companies to members but we have been encouraged by the work the Service Providers Association has been doing to establish a code of conduct for umbrellas."
He explained that the organisation has been conducting external assessments and sharing information with HM Revenue & Customs.
Fiona Coombe, director of professional services at the REC, said recruiters may wish to conduct further due diligence on companies' affairs in light of Albany's collapse.
Posted by Stephen Wilkinson
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