New regulations on employment agencies will give law firms and work-seeking solicitors greater protection, it was claimed this week.

According to Guy Hollebon, an employment associate at Bristol-based Bevans, the Conduct of Employment Agencies and Employment Business Regulations 2003 increase the amount of red tape and procedures that must be followed, but ensure that recruitment agencies are up front and transparent about how they will charge and what their terms of business are.

He said this should lead to recruitment agencies reviewing and potentially amending their standard terms of business to ensure compliance with the regulations, which came into force last month.

The regulations compel recruitment agencies to agree with the law firm the terms and conditions for supplying temps or finding permanent staff before they undertake any work-finding services.

'This will mean greater transparency for the hirer law firm,' Mr Hollebon said.

Law firms receive added protection under the regulations, as recruitment agencies must obtain confirmation of a temp's identity, experience, training and willingness to do the work.

He added: 'For solicitors who use recruitment agencies to find them jobs, the new regulations make it clear that agencies cannot charge the work-seeking solicitor for this service.

Neither can the agency force temps to provide details of any future engagements with the law firm.

Temps must be paid for work done regardless of whether ultimately the agency is paid by the hirer.'

Mr Hollebon predicted that the greatest impact is likely to be in the temporary staff sector, including locum solicitors.

'At present, the use of "temp-to-perm" fees is very commonplace: a law firm takes on a temp via an agency, but likes him or her so much they offer them further work, usually cutting out the agency to keep costs down,' he explained.

'As the introduction was made by the agency, the law firm may have to pay a fee for this.'

He said that under the regulations, such fees will not be allowed in most cases unless the firm is given the choice between paying a fee or having the individual for an extended period of hire through the agency, at the end of which the temp can be engaged directly by the law firm with no further fee being due.

If the firm is not given this choice, the transfer fee will not be lawful and so not recoverable by the employment agency.

Mr Hollebon predicted that satellite litigation could begin between employers and agencies over whether the regulations have been complied with in an effort to avoid paying any fees.

Neil Rose