What legislation do you need to know about for recruitment?

For small business owners, the recruitment process can be both an exciting and stressful experience.

It’s not just about finding the right fit for the role. As a recruiter, there are various recruiting laws and legislation that you need to be aware of to ensure your hiring process is fair, inclusive and transparent.

Whilst there isn’t one single UK law that governs recruitment, there are various pieces of legislation that are relevant, and that help to protect both employers, recruiters and candidates when hiring.

In this guide, we’ll explore the legislation to ensure you have all the information you need to hire staff professionally and within the law.

What are the laws governing recruitment in the UK?

Let’s take a look at some of the laws governing recruitment in the UK.

The Equality Act

The Equality Act 2010 ensures that individuals are protected from unfair treatment, and prohibits discrimination based on protected characteristics such as age, race, gender, religion, sexual orientation and disability.

When it comes to recruitment, The Equality Act mandates that every stage of the recruitment process must be carried out fairly, without bias and that employers and recruiters must treat every candidate equally.

This means that the decision to hire a candidate must be made solely based on their skills, experience, and fit for the role. Queries about protected characteristics might actually be illegal questions to ask in a job interview.

Employment Agencies Act

The Employment Agencies Act (EAA) 1973, is the piece of legislation that is most specific to recruitment businesses.

It includes various rules and requirements, stipulating that:

• Someone looking for work cannot be charged a fee by a recruitment agency for helping them to find a position
• When a candidate is hired, they must be given a written contract that details things such as pay, hours and holiday allowance
• The candidate must be made aware that they are applying for a role via a recruitment agency as opposed to directly with the employer

GDPR and data protection

Under the The General Data Protection Regulation Act (GDPR) 2018, employers and recruiters are obliged to handle candidate data responsibly and in accordance with seven key principles.

These are:

• Lawfulness, fairness and transparency – use personal data in a way that is legal, expected, and transparent
• Purpose limitation – use candidate data only for the reasons it was collected
• Data minimisation – limit the amount of personal data to what is necessary to do the job in question
• Accuracy – ensure personal data is accurate and up-to-date
• Storage limitation – only keep a candidate’s personal data for as long as it is needed
• Integrity and confidentiality (security) – keep personal data secure and protected from unauthorised access, loss or damage
• Accountability – take responsibility for data protection compliance, and keep records to demonstrate how this is and has been achieved

They must obtain all of the relevant consent from a candidate before they collect their data, ensuring the data is accurate and secure.

All candidates have the right to access or remove their personal data and a recruiter or employer is legally obliged to comply with these requests.

Right to work

As part of the Immigration, Asylum and Nationality Act 2006 employers must conduct right to work checks on all new employees. All employers must establish that a worker has the right to work in the UK before they are formally hired for the role.

Right to work checks can be done manually via an identity service provider or the Home Office Online Checking Service, identity digital service provider (IDSP), depending on the nationality and immigration status of the candidate.

While the above list covers the main UK legislations that recruiters need to be aware of, there are plenty of other acts and laws that can impact the recruitment process. Some others that it’s a good idea to familiarise yourself with include:

• The Rehabilitation of Offenders Act 1974 – this allows candidates the right to not disclose certain past convictions unless applying for certain roles such as those working with children or vulnerable people (learn more in our guide to hiring ex offenders)
• National Minimum Wage (NMW) and National Living Wage requirements – with the National Living Wage being higher than the National Minimum Wage, which is the amount of pay that all almost all workers are entitled to be paid per hour in the UK
• The Health and Safety at Work Act 1974 – job adverts must accurately depict the working conditions of the role
• Flexible working – while not directly related to recruitment, the Flexible Working Bill means an employee must allow a candidate to request flexible working from Day One of employment, meaning this is likely to come up during the recruitment process.

Do all recruitment agencies need a licence?

The short answer is no, recruitment agencies no longer need a licence to operate in the UK. There are various legislations however that they must comply with, which we’ve already discussed in this article, and there are some exceptions.

Certain sector-specific recruitment agencies will need a licence, or at the very least to be registered with a professional body.

For example, those recruiting staff to work in the care sector must be registered with the Care Quality Commission (CQC) and those recruiting for food processing, horticultural or agricultural roles will need a licence from The Gangmasters and Labour Abuse Authority (GLAA).

Employment contracts

Once you’ve chosen the successful candidate for a role, they then must be given an employee contract. An employee contract should include:

• The employee’s new job title and a clear description of the job role
• Specified working hours
• Working conditions (e.g. is the role office-based, will it include site visits etc)
• Salary and wage plus details on bonuses, overtime and payment frequency
• Holiday entitlement
• Details of probationary periods
• Notice period – both during and after the probationary period
• Any confidentiality or non-compete clauses

There are also different types of employee contacts, depending on the organisation and role.

Permanent contracts

A permanent contract offers employees ongoing employment with no end date.

Temporary contracts

A temporary contract is for a fixed period. The end date should be stated in the contract.

Zero-hour contracts

A zero-hours contract provides no guaranteed number of set hours for a candidate, but offers flexibility for both the employer and the candidate.

It’s important to note that the UK government has introduced changes to the zero-hour contract, including that employees now have the right to a contract that reflects the number of hours they regularly work. Employees can still opt-in to a zero-hour contract if they wish to do so.

What’s the importance of compliance?

Understanding and complying with recruitment laws and legislation is essential for employers and recruiters alike. Doing so ensures you are conducting fair and transparent recruitment and promotes a positive workplace from the get-go.

Failure to comply could result in fines and even legal action, not to mention a huge dent in your reputation. Some ways you can ensure you are always staying compliant are:

• Keep a close eye on new and changing legislation to ensure you are always acting within the law
• Implement a transparent hiring process that involves clear communication and feedback
• Write inclusive job descriptions that do not discriminate against certain groups or characteristics
• Conduct regular training sessions and workshops for everyone involved in the hiring process

Summary

Hiring new employees should be an exciting time as your business grows and new additions to the team create new dynamics and opportunities.

Whether you are an in-house recruiter or work for a recruitment agency, the rules and regulations around hiring staff remain the same.

Ensuring you are compliant and offer an inclusive and transparent process helps to boost your reputation and protects both employers and candidates from unnecessary stress and problems.

Remember, laws and legislation change all the time, so always do your research to ensure you are fully compliant and acting within all the relevant legal requirements.

Lucy Nixon - content writer

With 10 years experience in the digital marketing industry, Lucy is a content writer specialising in ecommerce, website building and all things small business. Her passion is breaking down tricky topics into digestible and engaging content for readers. She's also committed to uncovering the best platforms, tools, and strategies, researching meticulously to providing hand-on tips and advice.