Issue link: https://maltatoday.uberflip.com/i/1514242
10 OPINION maltatoday | WEDNESDAY • 10 JANUARY 2024 Dr Mark Said is a veteran lawyer Mark Said ARE temping agencies good or bad? That depends. If run prop- erly, staffing agencies can offer great advantages to both job seekers and businesses, pairing up both of them with the right solution. However, on the flip- side, a lot of staffing agencies seem like undesired middlemen who end up costing both busi- nesses and employees too much money on their books. The government will be legis- lating to regulate temping agen- cies that import foreign workers while incentivising those that are serious. A temping agency provides contract workers to lo- cal companies. Such workers are subcontracted to companies but are technically employed by re- cruitment agencies. Many third-country nationals have spoken out about the abuse and exploitation they faced from such agencies. In November of last year, Parliamentary Secre- tary Andy Ellul said talks were under way to regulate these agencies and that unlicensed temporary employment agencies could be barred from bidding for public contracts. It is about time that temping agencies are strictly regulated, yet one may easily understand that legal language may be con- fusing, so reviewing any of the acts and addenda that the even- tual law may carry may help in understanding the fundamen- tals. One frequent assumption about the recruitment market up until some time ago was that agencies should not be held ac- countable. Obviously, with the law in question, this will no longer be the case. Instead, re- cruitment agencies will be strict- ly regulated and must follow a set of legislative guidelines. One expects that it will be pro- hibited to charge candidates for job placement. Job searchers can expect to pay the price only if they want to employ an addi- tional service, such as CV writ- ing or career counselling. Equal- ly to be expected is that agency workers must be furnished with a documented contract. This must contain information on compensation, notice period, holiday entitlement and whether they work under a service or em- ployment contract. Agency workers' pay cannot be withheld. Even if the employer is dissatisfied, the disagreement is between the employer and the agency. Agencies must veri- fy candidates' fitness. Recruiters are legally mandated to screen candidates to ensure they have the necessary skills and creden- tials. It must be evident that a re- cruitment agency is advertising the post. This notifies the can- didate that they are not applying directly to the company. Regarding staffing, recruitment agencies should declare any pay- ments received if PAYE is not used and submit information about the employees and why PAYE was not implemented. In other words, they must declare it if they provide labour but do not collect income tax. When hiring employees, em- ployers and recruiters are not permitted to use prejudice. Age, gender, ethnicity, religion and marital status are protected traits. Even if a business out- sources its hiring to a recruit- ment company, they are still li- able if the recruiter violates the law. Like any other company that gathers personal information, recruitment agencies are sub- ject to the Data Protection Act. A recruitment company, in par- ticular, must exercise caution in maintaining company and appli- cant data. This latest initiative by the gov- ernment to regulate temping agencies reflects the acknowl- edgement of the growing role played by private recruitment agencies in matching workers with available jobs and their po- tential to promote labour mar- ket efficiency. However, it also recognises the need for the gov- ernment to regulate and moni- tor the activities of private em- ployment agencies in an effort to prevent abusive practices and ensure the protection of migrant workers' rights. Although the state will bear the primary responsibility for mon- itoring recruitment regulations, social partners (i.e., trade unions and employers' organisations) as well as non-governmental organisations can contribute to recruitment monitoring through self-regulation mechanisms, awareness-raising and advocacy campaigns. Even before introducing new legislation governing the op- eration of private employment agencies, the government should be required to develop a moni- toring and enforcing mechanism that ensures that all market ac- tors meet the requirements. Li- censing fees should be part of this mechanism. Monitoring and law enforcement can be carried out by the licensing authority or by regular labour inspection units and the police in the case of criminal activities. In order to operate effectively, law en- forcement officials must have clear benchmarks and standards against which the performance of private employment agencies and other types of agencies can be evaluated. The conditions and criteria stipulated in the license can be used for this purpose, along with codes of conduct and relevant labour and immigration laws. Of course, there are down- sides. Every company needs to make money to keep the lights on in the office. Temp agencies charge employers a fee for the services provided in order to stay in business. Although the fees ultimately save the com- pany money in human resourc- es costs, businesses are always looking for the best deal. A temp agency that has higher overhead Regulating temping agencies